Royal LePage Kelowna Real Estate Report for July 2022
A buyer’s market is usually characterized by more homes (inventory) on the market than there are buyers. As demand decreases, prices tend to follow. This allows the buyers to have more leverage to negotiate. They can also take more time shopping around as it’s unlikely they will lose out on a property they’re interested in. For sellers, they need to be more careful than usual to price competitively and work harder to make sure their home is in tip-top shape for selling.
A seller’s market is when there is a shortage of inventory which can lead to prices appreciating as more buyers compete for fewer available homes. Sales can happen very quickly and sometimes there are even multiple offer situations. Buyers sometimes need to make quick decisions and may even choose to waive conditions on their offers. Sellers can maximize their likelihood of multiple offers by having their home ready to show at a moment’s notice and perhaps pricing it just below top dollar.
Currently in the Okanagan, we are coming into a more balanced market. It has been a hot seller’s market for some time, but recent interest rate hikes have led to levelling out. Multiple offers are becoming rarer, as more homes receive a single offer that goes through inspection and financing conditions before completing. This likely means that buyers have a little more power to dictate terms. Conversely, there is still a shortage of supply, which means prices are expected to flatten rather than dropping drastically. That means it may continue a seller’s market for some time. What should you do in this market? Contact us for a plan of action tailored just for you.
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