Welcome to spring, earlier than usual. It seems winter and spring have been in a tug-a-war this year. The beauty of snow and the anticipation of spring can create such conflicting emotions. But I digress, the lack of snow is not the only thing lacking in 2024. With only 27 single family homes for sale, it would appear that real estate has been sluggish also.*
In January 2024 there were a total of 9 residential real estate transactions: 4 single family homes, 3 strata units, 1 manufactured home on PAD and 1 vacant lot or land. The highest sale price for a single family home was $975,000 and the lowest $800,000. Single Family home real estate listings remain on the market between 63 and 228 days before they sell. All single family homes sold for less than their listed price in January. The lowest being $30,000 below ask and the highest two at $139,000.*
Also of note were the 3 strata unit sales. One being a penthouse at Sutton Place and another a two bedroom unit at Mackenzie Plaza. The Mackenize Plaza unit sold in only 10 days. This timeline is far below the average for single family homes. Strata sales remain consistent at three per month, two months in a row. Is it an indication that the desire for secondary or investment properties is higher than a single family home? Or does it reflect the type of buyer at the moment?
The two charts on this page show the difference in sales year over year and also month over month. While the month to month comparison shows a decrease in the number of sales. The comparison from January 2023 to this January indicates market activity is the same.
Over the past year, the Bank of Canada has made several changes to its key interest rate, thus affecting mortgage rates.
In January 2023 the average five year fixed term rate was 4.39% and in January 2024 it was 4.84%.
A direct result is that lending more expensive than it was a year ago. This change in borrowing cost could be what is making home sales slower and strata properties more popular. Commercially zoned properties require a more substantial downpayment. A buyer who is interested in a second or recreation property generally has more cash.
I’m always on the lookout for fresh ideas to write and learn more about. Your input matters to me, so if there's a topic you're passionate about or something you think needs more coverage, please don't hesitate to reach out. Additionally, if you're interested in a market valuation for your home or are in need of a reliable realtor, I'm here to help with that too. Your interests and the community's well-being are my top priorities.
* info taken from the MLS for the Revelstoke Area on February14, 2024, single family homes only.