Buying in a Sellers Market!

With money being cheap and the real estate market going bonkers, who knows what will happen this fall/winter. In normal market conditions, people are not buying up all the toilet paper and the real estate market tend to cool down come the winter. This year has been different in so many respects, will this be different? Despite the current inventory across the Central Okanagan being 5% below the five-year average for October, there were 48% more sales in September compared to the 5-year average and so far in October 26% more sales than average. Comparing the number of listings to the number of buyers in the market place the second half of 2020 has seen positive growth. Compared with the 5-year average, September saw 11% more sales to active listings with 29% of the inventory selling, October so far is at 25% of the listings selling which is 6% higher than the 5-year average. This means buyers are competing with 5-11% more buyers than normal, which is likely low due to a lot of homes getting multiple offers and back up offers. Keep in mind October numbers were pulled at noon on October 26th.

The percentages are sales compared to the number of active listings during that month, these numbers give you an idea of how many people are buying homes compared to the inventory levels. These numbers do not take into account the people looking and making offers on homes without them being accepted and subject conditions removed. With a few days left in October, it is tracking at nearly the same blistering pace as September, and inventory levels based on seasonality and the holiday season are starting to drop off. Sellers appear they will continue to be holding the upper hand.

Sellers deciding to sell now are setting themselves apart seeing 5-10% more active buyers activity than in the last five years. With a lot of the homes going into multiple offers, that number is likely low and the natural results are there are some people that have lost out and not found a home yet. With more of the right inventory, these numbers could be higher as there are not enough homes for the buyers currently looking. There are 2331 active listings in the Central Okanagan the inventory is down 270 listings compared to the previous 3-year average. Sales are up so far in October and 171 additional sales in October than the previous 3-year average. It is a strong seller's market right now and tough on buyers due to the competitiveness in the marketplace. If you are a buyer, you will need to act quickly, ideally get in the home the same day as it's listed. It is good to be prepared from having financing already lined up to structuring a quick inspection date in the contract, the clauses in the contract can set yourself apart from other buyers. Every bit matters. It is best to take care of the most you can before making the offer. Reach out to get a digital copy of my checklist of what to prepare for when looking at buying in this competitive market. Happy Halloween and have a great week! -Mark