Kelowna’s real estate market is still hot, favouring sellers, but there are some good signs ahead for buyers too!
Recent changes to mortgage rules and increases in interest rates may be having an impact on home sales in the Okanagan. It’s definitely still a seller’s market, but with increases in inventory and sales holding steady, buyers may have an easier time navigating the market right now. A building boom in Kelowna may also lead to increased inventory and more balanced prices over the next year but the economic forecast for the area looks strong and would-be homebuyers may regret not taking advantage of the current window of opportunity.
Seller’s will want to take care to price their homes carefully to avoid spending too many days on the market or price drops. A seller’s market doesn’t mean you should push the envelope and price yourself out of the neighbourhood. Your real estate agent should be able to show you comparable listings and what they sold for (NOT what they are listed for) so that you can make an informed decision as to what your home may sell for.
A Kelowna homebuyer should be on the lookout for bargains in the right neighbourhoods. The City of Kelowna has improvement plans for a number of key areas throughout the city, so buying in those areas may be a strong long-term investment. This time of year is also good for homebuyers as the prices are often lower and sellers tend to be more motivated.
Real Estate Listings
While real estate tends to cool down along with the temperatures, now is still a great time to be buying and selling real estate in Kelowna. Inventory is a bit lower at this time of the year, yet the number of listings is still higher than last year. That means that it’s a good time for those who are looking to both buy and sell in the area. Perhaps you want to move up the property ladder? Now’s your chance. Thinking of downsizing? There are plenty of townhomes and condos that will be coming on the market soon!
Monthly Listings by Price – October 2017
New Residential Listings
Residential listings are up 14.43%, from 582 in October 2016 to 666 in October 2017.
We are also seeing a significant uptick in the number of single-family homes hitting the market. Last month, 333 were listed in the Central Okanagan, a 31.1% increase over the 254 listings added in Oct. 2016.
Active Residential Listings
The total amount of active residential inventory is up 12.88%, from 1,529 to 1,726. The largest gains are in the single-family residential category, which has seen a 34.89% increase in inventory levels, skyrocketing from just 642 active listings in October 2016 to 866 in October 2017.
Real Estate Sales
After a brief blip in market absorption rate in September, we are back to an official seller’s market in Kelowna. The good news is that things still look much more promising this year than they did last year. We’re still seeing a rise in inventory that is outpacing sales, so we may yet see prices drop a bit more.
Residential Property Sales
Despite an increase in new listings and available inventory, home sales remain steady with a 2.67% decrease in overall residential sales and no difference in the number of sales for single family homes (220 sales for October 2017 and in October 2016).
Monthly Sales by Price – October 2017
Days On Market
With this increase in inventory and steady demand, we are seeing a nearly 10% increase in the number of days it takes to sell a home in the Central Okanagan. Last year, the average for all residential properties was 54 days and this year it is 59 days; that’s a 9.59% increase.
Real Estate Inventory
Buyers will be happy to know that real estate inventory in the Central Okanagan is much higher than it was this time last year. Demand is still fairly high, however, so working with a Realtor who can help you navigate the competitive real estate landscape is still important.
In October 2015, there were 981 single family homes on the market (including waterfront properties). Last year, that number plummeted 29.56% to just 691 active listings. Thankfully, that number has climbed back up to 927. That’s a 5.5% decrease from two years ago but a 34.15% increase from last year.
3-Year Inventory of Active Single-Family Residential
Current Real Estate Inventory
Real estate inventory continues to grow stronger, edging up 12.88% to 1,726 active listings by the end of October. Single-family homes are seeing a particularly strong showing with a 34.89% increase, rising from 642 listings in Oct. 2016 to 866 listings in Oct. 2017.
Kelowna Real Estate Prices
Average residential home prices may be up 16.31%, from $493,191 to $573,612 (including condos and townhomes), but are people actually paying those prices? It depends.
In a seller’s market, it’s not unusual to see a gross inflation of home prices as seller’s look to get the highest possible return on their investment. Whether or not people are prepared to buy at that price is dependent on comparable homes in the neighbourhood and timing.
Single Family Residential Average Prices
There are some overpriced homes that get lucky, hitting the market exactly as the right motivated buyer comes along. Unfortunately, those buyers are rare and it’s much more likely that you will have to consider a price drop or accept a lower offer if you really want to sell. Of course, a well-priced home will provide the perfect balance, attracting buyers and netting you a fair price without spending months on the market.
Average List Price
The average listing price for a single-family home was $672,434 last month. That’s up 9.34% from $612,972 in October 2016.
Of course, it’s important to remember that the list price isn’t necessarily the sale price of a home. The team at Walker Real Estate can 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.
And before we go, here’s our infographic with an overview of some of the major stats for October 2016 versus October 2017:
*Unless otherwise noted, all stats are for Oct 2017 compared to Oct 2016 and cover the Central Okanagan region. Statistics are provided by the Okanagan Mainline Real Estate Board.