When we compare the statistics of 2019 to 2018 it tells the story we have been telling you all year: The market has been in a soft correction.
Inventory is up in the Okanagan Shuswap. Absorption, prices and sales are down slightly compared to 2018. When we separate the three zones, the north has been doing slightly better than the Shuswap and the central, but basically it has been a pretty balanced market or a slight downturn.
However, when we compare the second half of 2019 to the second half of 2018 the trend is upwards. What does that mean?
It means that about half way through 2019 the market started to shift from a very slight correction (down market) to a very slight recovery (up market). If you remember, half way through 2019 there were some positive forces coming into the market that should make a difference in 2020. These positive forces reflect the introduction of the first-time buyer program from CMHC, interest rates at record lows again and Vancouver and Toronto—our two biggest economies—are in recovery again.
As expected, these forces are making a difference, and we are starting to see the difference showing up in the stats. History will show 2019 was a relatively balanced year in the Okanagan Shuswap, with a slight downturn. It appears 2020 will be a relatively balanced year with a slight upturn.
Bill Hubbard is a real estate broker and the owner and broker of a four-office real estate firm in the Okanagan-Shuswap. He has been in real estate for 28 years and has been an owner and broker in Vernon for 20 years. At almost 60 years old he is just as passionate about real estate as the day he started.
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