By: Nicole Moreau

Buyer’s Market, Seller’s Market, Balanced Market. Which One Are We In Now?

Tags: Buyer’s Market, Seller’s Market, Balanced Market

There has been a shift in the Central Okanagan real estate market from a seller’s market to a balanced market. But what exactly does this mean?
 

A Seller’s Market

 
A seller’s market is when we have a limited supply of inventory, coupled with a large demand for homes. Essentially when the number of homes is less than the demand for homes. In this sort of market prices tend to inflate, we often see more multiple offer scenarios and inventory does not last long. When negotiating in a seller’s market, conditions are often minimized or not included at all.
 

A Buyer’s Market

 
A buyer’s market is when we have a surplus of inventory, coupled with a lower demand for homes. Opposite to a seller’s market, a buyer’s market is when the number of homes on the market is greater than the demand for homes. In this type of market prices often deflate,  we rarely see multiple offer scenarios and homes may sit on the market several months before being purchased. At the same time, buyer’s tend to be quite particular, include lots of conditions and really take their time researching all available listings.
 

A Balanced Market

 
A balanced market is somewhere between a seller’s market and buyer’s market. As the name suggestions, a balanced market means there is an equal amount of inventory to the demand for homes. A balanced market in the Okanagan means we have approximately 6 months of inventory available. It also means prices stabilize.
 

Today


So what exactly is happening in the Central Okanagan? In October in the single family homes category, we had just over 6 months inventory, indicating we have moved into a true balanced market.
 
Is now the right time to buy or sell? Each client has unique motivations and needs. To find out if now is the right time to buy or sell, please give me a call. I’m always happy to discuss real estate strategy and finding a solution that is best for you.