🎉HAPPY NEW YEAR!🎉
Well, it's been another interesting month in our local real estate market. As I look back, I realize what a wild ride it was. From record breaking sales volume and prices to a fairly sharp turn in buyer demand. I will have a year in review video coming out soon but for now check out last month's real estate stats for Cranbrook and Kimberley.
Over the last few months, the trend has been the same, slowing buyer demand but pricing remaining fairly strong. December however has started to show us a clearer picture of how I have been feeling in the market. Days on market is WAY UP! And average sale price and sold vs. list price is showing weaker figures then previous months. The biggest reason is buyer demand. Many home buyers are either sitting on the sidelines waiting to see what interest rates do or are just not prepared to jump into a home purchase at the current market rates. In addition, we are seeing more homes put on the market which is increasing inventory and softening prices. I would say that we are now officially in a buyer's market. Those looking to get a deal or be able to take their time to shop, should do so now. RBC along with many other banks/economists say that the bottom of this cycle will likely be April 2023. At which point buyer demand could start to increase.
Kimberley is mirroring the Cranbrook market in all of its stats. The same performance indicators are reflecting a strong buyers' market. Months of supply and days on market are illustrating just that. Buyers in the Kimberley market can expect to find some very motivated sellers and potentially grab a great property at a great price. Just like Cranbrook this is expected to be short lived and will likely improve by late spring.
Overall, it's a great time to shop for a property if the numbers make sense. Those that do not need to sell or perhaps are looking at adding an investment property will be happily surprised by the great deals currently available. Furthermore, rental demand continues to remain strong which is a positive for anyone looking at adding an investment property to their portfolio. We do not expect vacancy rates to increase as local economic factors are stable. In addition, with the Calgary economy likely being the best place to weather this economic housing downturn, many Calgary investors are still looking at the Kootenays as a safe place to invest or buy a vacation property.
Only time will tell- but either way it's going to be interesting how 2023 turns out.
Also- as an FYI starting Jan 1 the BC government introduced the home buyer rescission period for all purchases in the province. This applies regardless if you use a real estate agent or not. Essentially a buyer has 3 full business days after offer acceptance to walk-away from a contract with no legal liability. However, they are required to pay 0.25% of the purchase price to the seller should they exercise this option. It does not come after any condition removals; it's simply based upon the acceptance date. If you write a conditional offer on a property this is less likely to affect you, however it does heavily apply for anyone doing an offer with no subjects or subjects less than the 3 business days. If you would like to learn more about this, please connect with me and I can provide the full HBRP FAQ booklet.
Thanks, and see you next month!
Steve Throndson | Real Estate Advisor
REAL BROKER B.C. Ltd.
Call or text: 250.919.3366