What's going on in the Okanagan?

Pouring over the Okanagan Real Estate Board (OMREB) stats, it becomes readily apparent that the Okanagan has suffered in this last year the same as any other marketplace.  There was great debate in our office on whether the Okanagan--especially Kelowna--would be insulated from the market downturn as it has so many people there that have made their money, and can buffet themselves from the financial storm all around them.

The raw data shows that some sectors in the economy have been hugely hit--acreages, commercial and higher end homes.  Days on the market have increased substantially as well, up 20% from 80 days to  100 days.  It appears that the average price has declined on a single family residence 11%, and commercial pricing has declined 16%.  The overall marketplace has declined 11% as well (this includes raw land, acreages, farms, multi family, etc).

What does this all mean?  On closer examination it appears that recreational properties have not declined significantly.  People are holding onto their properties.  It looks like the average Okanagian (is that a real word?) has struggled, and that there are many homes in financial distress.  Both tourism and the forestry industry have had poor years.  Developers have gone under.  There is hope on the horizon, but that horizon is still far off.