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.

The Real Estate Market in the Okanagan Shuswap is continuing its robust, upward direction. Many houses are selling for above list price. As we discussed last month, everything points towards another robust year.

A question I hear a lot these days is, “Is now a good time to sell? Absolutely it is. This is one of the few times in the market where sellers do not think their homes are worth more than they are. Most people are surprised by what they can get for their home. Recently, we had a listing come on that almost every Realtor said was overpriced. We received a total of 4 offers in 48 hours and one was $30,000 over list price. These stories are not the exception, they are the norm in this market. If you are thinking of making a move in the next 5 years, now is probably the best time you will see to sell your home.  However, be careful. You have to remember that the reason prices are rising is that the inventory of homes to buy is so low.

There are 2 ways to avoid being homeless when you sell. First, you can buy subject to the sale of your home. This means that you put an offer on a house that does not move ahead to closing unless you sell your home. The problem with this solution is that this is viewed as a fairly weak offer. The seller has to count on you to price your home

correctly to sell before they know their home is sold. In this market there are likely offers without this stipulation which puts you in a poor negotiating position. In my opinion, the better way to solve this problem is to list your home and when the offer comes in have us put the following clause on the contract: “Subject to the seller finding suitable accommodation on or before (Date). This condition is for the benefit of the seller.” What this means is that the sale of your home does not go through unless you find a home to buy or rent and then remove this condition in writing. The reason I think this is a better option is it is an extreme seller’s market. A buyer has much more motivation to allow the seller to find a home than sellers have to allow the buyers to sell their home. You will likely be more successful with the latter solution than the former one.

If you would like to find out what your home is really worth in a market like this, give me a call at Century 21 and I will come out and evaluate your home, or it can be done completely remotely if you prefer. It is totally free.