Winners and losers in every market, right now some more losers than winners. But you still might be a big time winner. Watch the video to see what I mean.
The price reductions are only part of the story as listings are being relisted at lower prices.
Inventory is still below the 5 year average.
With a lot of negative news in the media, this week my goal is to bring some perspective to homeowners in Central Okanagan. It is easy to get fixed on the higher interest rates and increasing inflation. But this week in an attempt to bring a positive spin on the situation and bring some perspective to the situation. A tool that our team uses when pricing homes that take some of the guesswork and personal opinion out of determining a market value for a house whether buying or selling is the Home Price Index which "HPI is based on the value home buyers assign to various housing attributes, which tend to evolve gradually over time. It therefore provides an “apples to apples” comparison of home prices across the entire country." This is a good tool we use, to help support property valuations. This week we are going to put the real estate market in a perspective for a moment. Looking at property values over time and not just in the short run. Hopefully, this will give you some solace if you have been concerned with rising rates to know how your properties have faired over the last few months and years. To start, I will get the bad news over with. This chart is the HPI in comparison in home prices in the last month. The majority of sub-areas experienced a 5 - 5.5% decline in prices between August and September.
To give you some better hope, we extended the period out to look at the home prices this September compared with a year ago. As you can see in the chart below some areas were up and some were down. The saving grace in the ones that were down in value is it was limited, 5 out of the 30 areas saw a decrease in value of over 1% and 15 out of the 30 saw positive price growth.
This is all great but what does that mean to price estimates? Below is a chart that looks at the benchmark price by timeframe and property type. As interest rates started to increase in March, March would be considered the peak of the real estate market. In this chart the value difference now from 6 months ago is a bit more depressing, however, in an attempt to keep the message positive, I would like you to focus on the 2 columns on the right. Looking at September's price compared to 3 and 5 years ago. The price growth for Single-family homes in Central Okanagan has grown 40% and 46% respectively.
Curious about a home's value? I am offering to run any address you send me through the HPI indicator. This can be for a home you are looking at maybe purchasing or this could be your home. I am of the belief a little bit of knowledge can help. Email or text me an address, I will respond with the estimated value, and I promise no strings attached. Hope you had a great Thanksgiving. Please reach out if you ever have any questions or if there is anything I can do for you. Mark
Personal Real Estate Corporation
Coldwell Banker Horizon Realty
2021 Top 3% Internationally Coldwell Banker