Kelowna Real Estate Market News – December 2017

     

    It’s a common misconception that nothing happens in real estate in December. Christmas is coming, showing homes becomes more challenging, and the snow starts to fly… This year, that white stuff even broke snowfall records!

    What people often forget is that those who are selling and buying Kelowna real estate in the winter are often much more motivated. As the clock ticked down until the new mortgage qualification rules came into effect, December 2017 was a particularly interesting month for the Kelowna real estate market.

    Across the board, residential home sales in the Central Okanagan were steady in comparison to the previous year despite an overall jump in new listings and a 20% increase in sales of single-family homes. We’re really interested to see what all of this, combined with the new mortgage rules, will mean in 2018!

    Real Estate Listings

    More listings means more options for homebuyers and increased competition for sellers, particularly if you’re selling a single-family home at the higher end of the price range.

    Monthly Listings by Price – December 2017

    New Residential Listings

    Residential listings were up 20.36% to 337 last month, compared with 280 in December 2016. New listings for single-family homes were particularly robust, rising 27.13% from 129 to 164 homes. Townhomes also saw a big increase with new listings jumping 35.14% from 37 in Dec. 2016 to 50 in Dec. 2017.

    Active Residential Listings

    Inventory for residential listings has risen once again, from 1,165 homes in 2016 to 1,262 homes in December 2017. That’s an increase of 8.33% over last year.

    Real Estate Sales

    As we predicted in our November market report, the change in mortgage qualification rules sparked a flurry of activity last month. Sales were particularly high at the upper end of the market as buyers hurried to complete their transactions and maximize their budgets before the new year. Interestingly, there was a decline in the number of townhomes and condos sold last month. Apartment sales were down 7.69% and townhome sales dropped 20%.

    Monthly Sales by Price – December 2017

    Residential Property Sales

    Sales for all residential property types was on par with last year. In total, home sales increased by 0.32% from 316 homes sold in Dec. 2016 to 317 homes sold last month. But this figure doesn’t tell the full story.

    Single-family home sales, not including waterfront properties, jumped 19.08%. In December 2016, there were 131 of these properties sold while in 2017, that number 156. Single-family homes accounted for nearly half of all residential properties sold last month.

    Days On Market

    Despite increased sales activity, residential listings are spending about the same amount of time on the market.

    Days on Market
    Property Type Dec. 2017 Dec. 2016 Percentage Difference
    Single-Family Homes 56 57 -2.41%
    Condo – Apartments 51 54 -5.9%
    Townhouse 62 53 17.46%

    The total average for all residential homes is 60 days on market, the same as it was last year.

    Real Estate Inventory

    Inventory levels are once again on the rise, though they still have a long way to go before we have a chance at returning to a balanced market.

    3-Year Inventory of Active Single-Family Residential

    In total, December inventory levels were up 8.33% over the previous year, including everything from acreages to condos and waterfront property. The biggest gains were seen in single-family homes which are up 23.13%, from 536 to 660 properties.

    Property Type Dec. 2017 Dec. 2016 Percentage Difference
    All Residential Properties 1,262 1,165 8.33%
    Condo – Apartments 274 231 18.61%
    Townhomes 147 164 -10.37%
    Single-Family Homes 602 496 21.37%
    Waterfront Single-Family Homes 58 40 45%
    All Single-Family Homes 660 536 23.13%

    Kelowna Real Estate Prices

    Kelowna’s average home price climbed 12.34%, from $500,420 in December 2016 to $562,174 in December 2017, including lower-priced properties such as condos and townhouses.

    As we head into 2018, we would expect that home prices will continue to rise, though continued increases in inventory and tougher mortgage approvals may cause price increases to slow down. We’re most interested to see if the mortgage changes impact listings and sales at the higher end of the market where there is less competition.

    Kelowna Home Prices – Single Family Residential Average

    Average List Price

    Average prices for single-family homes climbed 12.61% in December, from $618,631 in 2016 to $696,650 in 2017. This also marks an increase in home prices over the previous two months.

    Looking at previous year’s data, we can see that home prices tend to drop in January which is excellent news for motivated buyers. If you have a Kelowna home for sale, you’ll want to keep this in mind and price your home accordingly. If you want to fetch top-dollar for your home and limit the amount of time it spends on the market, be sure that you’re working with a professional Realtor who has a robust marketing plan and ensure that your home shows well.

     

    With an increase in available inventory and an abundance of motivated sellers, now is a good time to buy Kelowna real estate. If you’re selling a home in Kelowna, you can get a headstart on the spring market and take advantage of winter’s comparatively low competition by listing with our Kelowna real estate agents now.

    Let the team at Walker Real Estate help you find a great home and negotiate to get you the best price in today’s strong Kelowna real estate market. You can contact us HERE.

     

    *Unless otherwise noted, all stats are for December 2017 compared to December 2016 and cover the Central Okanagan region. Statistics are provided by the Okanagan Mainline Real Estate Board.

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