The real estate market is an ever-evolving entity, influenced by a myriad of factors ranging from economic to environmental. As we delve into the current state of the market, it's evident that recent events have caused a significant slowdown.
High interest rates have always been a deterrent for potential buyers, making mortgages less affordable and slowing down the buying process. However, the current wildfire, which continues to rage on, has introduced a new set of challenges, particularly concerning insurance. The uncertainty and risks associated with the wildfire have made both buyers and sellers apprehensive.
Earlier in September, market analysts, including myself, anticipated a drop in inventory in September. Historically, as we transition from summer to fall, there's a seasonal slowdown that results in fewer listings. Contrary to these expectations, the market has seen an influx of 106 new listings since the beginning of the month. If you've been keeping up with my previous emails, you'll recall the prediction that inventory would decrease due to this seasonal trend. However, it's not just the listings that have seen a change. The number of properties sold has also taken a hit. As of now, September has witnessed a total of 156 sales after 19 days. When compared to the 10-year average of 501 sales for this month, it's evident that the market is not performing at its usual pace, it is actually half of the usual pace. For home sellers, this presents a challenging scenario. With more homes listed and fewer sales, the market leans in favor of the buyers. Sellers will need to exercise patience and perhaps reconsider their selling strategies. While the present scenario might seem daunting, it's essential to look at the bigger picture. Kelowna and its surrounding areas have always been attractive due to the natural climate of the Okanagan. The demand for properties in this region should remains strong in the long run, as people continue to be drawn to its scenic beauty and favorable weather conditions. In conclusion, while the current market conditions might be challenging, it's crucial to remain optimistic. Real estate trends are cyclical, and with time, the market will find its balance. For now, patience and strategic planning are key. Right now is a good time to start the planning, and we are here to help you plan.
Have a great week! Mark and Maddie