May 2021 Market Update

Sometimes the best way to make a point is to tell a story. One of our Realtors told a story recently of the pain experienced by some buyers she was working with. The buyers had lost a few deals by being out bid. In this particular offer they were not going to be outdone so they offered $100,000 over list price. They considered not putting in any conditions because their financing was a slam dunk at only 20% loan to value and they trusted what they saw in the house when they viewed it. However, they were advised by their mortgage broker to put a condition of financing in anyways. They did not get the deal. They were told the winning offer was $50,000 less than their offer but had no conditions. The sellers put more value on getting a firm decision than getting another $50,000. My Realtor said the buyers were angry and blaming the other side. However, this is like no fault insurance. The sellers are just taking the best offer for them in their minds. The seller’s Realtor is just looking after their client. The buyer’s Realtor was careful not to push them to go into a risky situation. The mortgage broker was being cautious and protecting the buyers. If anyone is to blame it would be the buyers because they did not choose to take the risk. How can anyone truly blame them for that?  This is one crazy market when we are actually discussing that by putting a single condition on an offer and offering $100,000 over list price was too conservative. At the end of the day people have to calculate and be comfortable with their risks. Then they have to accept the consequences and move on.

The Stats this month are off the charts, in the stratosphere, or any other similar metaphor I can come up with. This month the absorption in the North Okanagan is 90.31%. That means that 90.31% of all the houses on the market on April 1 sold in April. Kelowna’s absorption is 88% and the Shuswap is 47%. Who would’ve thought that we would be looking at an absorption of 47% as the area that is “Lagging behind”.  The average days on market to sell (DOM) was 23 days in Kelowna. What that means is that the listing was activated, an offer was negotiated and all conditions were removed in less than 23 days. That time period was 29 days in the Vernon Are.

On top of all that there is not a shred of hard evidence indicating that this market is going away anytime soon. Those who believe the bubble is going to burst are simply speculating and guessing at this point. However, even a broken clock is right twice a day. Sooner or later things will change.

As the cold of winter thaws, it’s time to check for any damage and prepare for warmer weather ahead.

• Clean your gutters. Improper drainage can cause water damage to your home. Check for loose and leaky gutters and ensure your downspouts are away from your home’s foundation.
• Inspect the roof. Visually inspect your roof, looking for warping, cracking or loose shingles/tiles. Examine the flashing around chimneys, skylights and vents.
• Check seals. Cold weather can cause seals around doors and windows to loosen, harden or crack. Inspect all seals inside and out and repair damage as needed.
• Service your home’s cooling system. Don’t get caught in the heat without air conditioning. Call your local professional to come out and servive your cooling unit to keep it up and running.
• Vacuum behind refrigerator. One of the easiest ways to improve the efficiency of your refrigerator is to gently vacuum behind it. Doing this will ensure that enough air circulation and the coils are not running too hot.
• Clean your dryer vent. Dryer vents are the leading cause of fires. You’d be surprised the amount of lint build up that can gather inside a dryer vent.

Enjoy the days getting longer and getting caught up with some of these common household chores. Happy Spring!