Market Update March 2023

The big stories in January of 2023 are the absorption rate. As we predicted last month we see some fairly
positive light at the end of the tunnel in the real estate market in the interior of British Columbia. This light is
coming from 2 directions. Firstly, the spring market in real estate starts when the weather breaks. The
weather started to break in the last week of February.  Open houses are getting busier with more and more
people out looking at houses. Secondly, the Bank of Canada decided to hold interest rates steady. This is
the first time the overnight lending rate has not risen since February of 2022. Most of the consumer interest
rates are based on the overnight lending rate. Record high inflation is beginning to come down with Real
Estate prices leading the way. Fuel and grocery pricesare expected to inch down in 2023 as well.

Real Estate sales in the interior of British Columbia in February, although down from February of 2022, have
increased substantially from January of 2023. The absorption figures, which is the best statistic to use when
trying to predict the future of the local markets, has increased moderately in all three zones as well. I cannot say
at this point that the downward trend is over. The market always rises in the spring. However, I can say that
combined with the interest rates, the spring market seems to be opening up fairly early and we should have a fairly
active spring market in the Okanagan Shuswap.