March 2021 Market Update

The Real Estate Market in the Okanagan Shuswap is still recording record sale prices, with limited inventory available. As previously discussed, everything points to another robust year for the industry.

The absorption in all 3 zones is higher than it has ever been in history. Even in the Shuswap it is over 55%. The absorption in the Central Okanagan (Kelowna area) is 74%. What that means is 74% of the total residential inventory sold in February. The absorption is the most effective statistic when we are trying to predict the future of any market in the next 18 months. Absorption is the statistical representation of supply and demand; the 2 driving forces of the market. It really doesn’t matter what we look at; the inventory is lower, the sales are higher, the absorption is higher, the average days on the market to sell is lower than any other February in the Okanagan Shuswap’s history with very few exceptions.

On top of that, most of the rest of the country is doing the same. Vancouver sales are up 73% over last February and 43% above the 10 year average. Absorption is at 45% which is not the highest ever but it is close. Anything above 20% is going to push prices up. We are hearing similar reports from Toronto and other metropolitan areas in the country.

The real question is how long will this last. Unfortunately that is a crystal ball question. COVID has shattered all the rules. Since COVID happened there is no algorithm that is going to accurately predict the future of the Real Estate market with any certainty. However, I can tell you 2 things for sure that are opposing ideas. First, it will take a while to turn this train around. One of the major differences in the Real Estate market compared to the stock market is that Real Estate changes much slower. This positive upward trend will not change overnight. Demand has to stop increasing and start decreasing. The inventory has to stop going down and start rising. Inventory has to get to a critical level that dramatically diminishes multiple offers on the same properties. Only then will you see prices start to level off. The second thing I can tell you is that this market will not sustain itself forever. Interest rates are lower than they have ever been in history but the government and banks will start to creep them up. There are already rumors of this. So what should you do with this information? If you have thought of selling your home or property in the next year my advice is do it now. Make hay when the sun is shining. Call your Realtor. You might be surprised what you could get for your home.

Not judging a book by its cover is harder than it sounds. Potential buyers can sometimes latch onto that first impression based on your home’s curb appeal, and I know you want to make a good one! Here are a few things you could try to give the front of your home a facelift:

* Plant a few extra flowers along the front of the house or along pathways.

* Add subtle lighting to highlight your designs.

* Add retaining walls to give contour to your landscaping and keep your soil happy and healthy.

* Power wash walkways to make them look brand new.
* If in doubt, bring in a landscaper! No one will judge you for calling in the cavalry to add some professional pizzazz to your front yard.

Increasing your home’s curb appeal is one of the easiest ways to attract buyers faster and get the return you want on your home. Time to put those green thumbs to use!

When getting ready to sell your home, don’t forget the outside of the building. Sometimes, improving the curb appeal of your home and winning that first impression is as simple as cleaning house. Take a look at this checklist of exterior home cleaning tips:

* Pressure wash sidings. Pressure washing can be fun and, of course, rewarding! Clear away the grime and get your home to shine.

* Are the gutters clogging up? Time to hop back on that ladder or hire a team to do the dirty work.

* Apply a fresh coat of paint, if you’re looking for a larger update for greater rewards.

* Add shutters or flower boxes to your windows for that cozy cottage look.

Whether it’s a fun, large project or a good old fashioned deep clean, every little bit helps to raise that curb appeal.