When asked these days "What is the market doing?" My response is "resting." Although organizations like CMHC are still calling for positive gains this year, prices have been at a stand still since the end of last year.
Buyer's are approaching the market cautiously with a "Let's just wait and see" attitude. The spring of 2008 was certainly slow and it has only been over the past few weeks that we are seeing any sign of fair weather real estate rush.
According to KREB year-to-date sales statistics to June 1st, our average sales price of a single family home in Nelson was up from $311,930 in June of 07 to $361,405 in June of 08 however the total number of sales was down from 89 to 63 and dollar volume was down from $24,762,800 to $20,342,825.
In Nelson Rural the average home prices have increased from $345,980 to $401,278 but total sales have also dropped from 97 to 76.
In Kaslo the price of a single family home increased on average from $218,500 to $315,000 but sales have dropped from 20 to 8.
And in Salmo we have had the average home sale increase from $195,785 to $261,740 but again total sales have dropped from 9 to 5.
So what does this all mean. It shows that we have a much more balanced market that requires Sellers to be more accurate when pricing a home to sell. The market is no longer racing to catch up with overpriced properties. For buyers they now have more product to be able to compare a property to and they have the time to make better informed decisions. It is still a great market for Selling and Buying but conditions have definitely changed from a year ago.
Let me know if you would like a copy of my sales state comparison.
Source KREB YTD Stats to May 2008
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