We are pretty passionate about real estate and right now we are in the midst of some interesting changes in the industry. So let’s dive right in and find out what’s new in this month’s edition of Kelowna Real Estate News!
March 2018 vs March 2017 Infographic
The big headline this month is that single-family home sales are down. Way down. Sales for homes in the Central Okanagan fell 24.69% compared to last year, which is particularly significant when you consider that this is the time of year when sales tend to pick up. If that weren’t enough, inventory is up 21.55%. The laws of supply and demand state that these trends may soon start impacting home prices though we certainly haven’t seen a dip in home prices yet!
We’re keeping a close eye on the local market and are prepared to negotiate the best possible price for both our buyers and sellers. Did you know that we have a fiduciary duty to clients? That means that we must act in your best interest at all times, including if it’s not in our own self-interest.
Let us help you navigate the Kelowna real estate market, whether you’re looking to buy or sell a home in the Central Okanagan. Give our team a call at 250-764-4344 and we can walk you through the buying and selling process!
Real Estate Listings
In March, we saw a small increase in the total number of new residential listings coming onto the market. At this time of the year, we would expect to see a much higher number of new listings and this trend is something that we will be watching closely. With that said, last year inventory actually peaked in September, rather than in the spring months.
Monthly Listings by Price – March 2018
New Residential Listings
The total number of new residential listings climbed just 6.06%, from 907 in March 2017 to 962 last month.
Single family home listings were stagnate, dropping less than a percentage point to 420 new listings from 424 the previous year. Meanwhile, apartment-style condo listings are up 14.81% from 243 in March 2017 to 279 last month. That number is only set to rise as Kelowna focuses on building more density and with several major condo projects currently under construction.
Active Inventory – Kelowna Real Estate
Inventory for single family homes has been up, year-over-year, for ten months in a row now. Last month, inventory climbed 21.55% from 659 active listings to 801. Perhaps this is a result of recent changes to mortgage rules or the so-called “Speculation Tax”. It may also be a sign that supply is now increasing with the construction of new condos and townhomes.
3-Year Inventory of Active Single-Family Residential*
*includes Waterfront properties
Inventory levels for all residential properties is up from 1,495 last March to 1,771 listings this year. That’s an 18.46% increase in the total number of residential listings, including condos, townhomes and single-family homes.
Could this be the start of a balanced market?
|Property Type||Mar. 2018||Mar. 2017||Percentage Difference|
|All Residential Properties||1,771||1,495||18.46%|
|Condo – Apartments||416||340||22.35%|
|Waterfront Single-Family Homes||64||57||12.28%|
Real Estate Sales
The big news in Kelowna real estate right now is the massive drop in single-family home sales. Last month, sales were down 27.37% and the numbers this month aren’t much better.
The health of the residential real estate market is in flux right now, with Kelowna condo and townhome sales also taking dives of -26.82% and -38.24% respectively. Combined, all residential sales were down 26.82%, tumbling from 563 sales in March 2017 to 412 sales in March 2018.
Monthly Sales by Price – March 2018
For now, these numbers don’t appear to be impacting sales prices too much but that may change over the coming months if sales remain low and inventory continues to increase.
Residential Property Sales
Last month, single-family home sales tallied 138 sales and this month, that number climbed to 183 deals completed. But that’s still down from the 243 home sales in March 2017. That means that single-family home sales were down -24.69% compared to last year.
We are currently still in a seller’s market, but that doesn’t mean that selling your home will be easy. Pricing your home well and creating a strong marketing plan are all integral to ensuring you maximize your value and avoid having a home sitting on the market for too long.
Days On Market
Speaking of homes sitting on the market for too long, it’s taking 19.06% longer for single-family homes to sell. Last year, homes spent an average of 45 days on the market and this year, that number was 53. That’s a pretty dramatic difference and shows that pricing your home right the first time is important unless you’re prepared to deal with showings and a lack of offers for months on end.
|Days on Market|
|Property Type||Mar. 2018||Mar. 2017||Percentage Difference|
|Condo – Apartments||42||44||-3.6%|
Kelowna Real Estate Prices
Inventory is up, sales are down, and yet prices are still going strong. This is the highest that home prices have ever been in Kelowna and we don’t usually hit the peak until early summer.
The average price of a residential property in the Central Okanagan climbed 13.19% last month to $571,678 from $505,059 the previous year. This includes condos, townhomes, mobile homes, and single-family homes.
Kelowna Home Prices – Single Family Residential Average
Average Kelowna Home Price
The average price of a single-family home in Kelowna is up 14.54%, rising more than $93,000 year-over-year. In March 2017, the average home price was $640,969 and last month, that figure had climbed to $734,197. In February, the average home price was $678,156.
If inventory continues to increase while sales decline, we may start to see a drop in real estate prices. Barring any economic catastrophe, it is unlikely that prices will fall much below a handful of percentage points so if you are thinking of buying, you’re probably still better off getting into the market now.
If you are considering purchasing one of the new-build condos that are currently going up, consider hiring an experienced realtor who specialises in Kelowna condos to help you navigate the process. If the Speculation Tax forces developers to halt construction, it may end up costing you a lot of money.
Lastly, if you’re selling a home in Kelowna this year, make sure that you take the time to shop around when you look for a real estate agent. No matter how well you know someone or how great their Google Reviews may be, not every agent is right for every homeowner and property.
At Walker Real Estate, we want to make sure that we get you top dollar for your home and that you have a great experience too. That’s why we are introducing our ‘No Risk Listing’ Guarantee. List your home with us and if you find the buyer, you don’t pay us a cent. Still need help handling the paperwork? We can still take care of that for you at a reduced rate!
*Unless otherwise noted, all stats are for March 2018 compared to March 2017 and cover the Central Okanagan region. Statistics are provided by the Okanagan Mainline Real Estate Board.