Big questions: Is the Okanagan condo market still so soft? What is happening with the oversupply situation?
Wellll, looking at Penticton and Summerland combined, we see 24 sales last 30 days.
The average list price on these was $290,353 and average sale price was $278,937 with 175 days on market the average time to sell. Now, 22 of those solds are Penticton. And there are 226 active listings in Penticton this category, making about a 10 month supply! That would seem to be a pretty good improvement over the last 24 months where we have seen MUCH weaker absorption rates than this.
Buuttt, that means 2 solds this category last 30 days in Summerland. Of those 2 in Summerland, though, the average sale price is only $216,500, about 20% LESS than in Penticton. This indicates that the “condo buying” market place just is not very interested in the condos that Summerland has to offer! The buyers are buying more expensive places than what Summerland appears to offer: maybe “newer”, maybe “bigger”, maybe”nicer upgrades”…
And a look at the supply bears this out, big time! There are 51 active condos listed in Summerland, making for an absorption rate TWICE AS WEAK as Penticton.
When you consider that one real estate firm has had 4 listings sitting unsold for over a year and two others just under a year…well, that certainly speaks of stale merchandise! But the over supply/wrong supply situation in Summerland is actually even worse as there is a hidden supply lurking to come on the market the moment there is any sign of life (not counting the developers who also plan to build more new product!)
In Summerland last 12 months there has been an additional 47 properties listed on MLS that did not sell and thus were removed from the market! and 43 the year before, and 72 the previous year….these statistics tell a story of trying to sell some things that someone just doesn’t want!
Patrick Murphy 250 486 2529
RE/MAX ORCHARD COUNTRY
10124 MAIN ST SUMMERLAND