It’s not significant cause for alarm, but it is a trend worth watching, the Kelowna real estate market seems to have softened somewhat in recent months.
This is evident in the most recent market stats from the Okanagan Mainline Real Estate Board (OMREB). The figures show that home sales were down 28% for May 2018 versus May 2017.
During the same period, 1,764 new listings hit the market. That’s an increase of 7% over May 2017. Of course, a decrease in sales combined with more new listings equals an increase in inventory.
From our perspective, part of what we are seeing with these figures is the market is starting to return to normal following a period where it was very hot. Of course, new legislation and changes from the government may be having an impact too.
House prices remain robust, with the average price climbing 4% to $532,972. When the market starts to change, the average price tends to be the final indicator to normalize. If the current conditions are going to have any kind of significant impact on average prices in our area, we’ll need to see the current trend maintain for the long-term.
So what does this mean for you? With more inventory on the market, sellers can expect their properties to take longer to sell – more inventory means more competition. However, prices will remain strong.
For buyers, you have more negotiation room given these latest stats. No matter which side of the equation you find yourself on, in a market like this, it is even more important that you engage a skilled real estate agent to act on your behalf.