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Hello everyone! Welcome back to another insightful real estate market report. Today, we delve into the statistics for December 2023 in the Central Okanagan. The past year has been marked by various challenges, including a slow start, rising interest rates, and the impact of devastating fires from mid-August to September. These events, combined with high interest rates, resulted in a notable slowdown in the real estate market during the third and fourth quarters.
2023 Recap: Overcoming Challenges
Despite the challenges, there is optimism as we look ahead to 2024. Rumours suggest that the Federal Reserve in the U.S. may cut rates by up to 2.5% in 2024, with the Bank of Canada expected to follow suit by up to 1.5%, potentially lowering rates as early as April 2024. Decreasing bond yields have already started improving fixed-rate mortgages, creating expectations for a more stable and balanced market in the coming year.
Examining Recent Real Estate Statistics
Let’s dive into the recent real estate statistics for a comprehensive overview:
- Economic Landscape:
- The current inflation rate in Canada is at 3.1%.
- The Bank of Canada rate is holding at 5.0%.
- Market Status in Central Okanagan:
- The absorption rate stands at 7.4%, maintaining a Buyer’s Market status.
- Sales for the past month totalled 197 units, marking a decrease of over 22% from last year but only a 4% decrease from this time last year.
- Price Trends:
- The average overall sales price has seen a slight dip of 4% from this time last year.
- Condos and townhouses experienced a slight increase in their average price in the past month, while single-family homes saw a small decrease.
- Market Dynamics:
- Properties are now on the market for an average of 64 days, slightly longer than this time last year.
- Inventory is up by 28% from this time last year.
The Path Forward
As we conclude the 2023 real estate market report, we anticipate a more promising year ahead. The potential rate cuts and improving economic indicators provide hope for a revitalized market. If you have any questions or seek further clarification on these statistics, please feel free to reach out.
For a more in-depth analysis and visual insights, check out the video review on my YouTube channel. Your feedback and engagement are always appreciated.
Here’s to a successful and thriving 2024 in the Central Okanagan real estate market!
