We are well into 2018 and the Kelowna real estate market shows no sign of slowing down. As we look at the data over the past couple of years, we even need to question whether the average home price will hit $800,000 this year! If that sounds crazy, you’re not alone… We think home prices are a bit nuts too.
In recent years, we’ve seen periods of activity that have forced home prices up by about $100,000 or more above the previous year’s average. Last year, this steep jump in home prices was observed from April to June. This year, we are already seeing home prices approaching that mark and we haven’t even hit the prime selling season yet.
Now, we don’t want you think that it’s all doom and gloom. We will continue to see new condo projects hitting the market this year; an excellent choice for those looking to downsize and for first-time homebuyers to get onto the property ladder (side note: if you’re on the hunt for a great condo, you’ll want to visit our sister site, KelownaCondos.ca).
Speaking of which, if you are a first-time homebuyer in the Central Okanagan, don’t wait to buy your new home. Barring any economic catastrophes, it’s unlikely that we will see any major dip in home prices. Those who wait to make their move will find that the prices keep on climbing, requiring even larger down payments and heftier mortgages. If you don’t know where to begin, give our team a call – 250-764-4344 – and we can walk you through the buying process.
Real Estate Listings
The new year seems to be bringing a lot of new changes for Kelowna area homeowners as new listings are up more than 22% last month. Unfortunately, that number doesn’t paint the full picture, but we will get to that in the Real Estate Sales section below.
Monthly Listings by Price – January 2018
New Residential Listings
Residential listings were up 22.74% to 529 last month, compared with 431 in January 2017. New listings for single-family homes were strong, rising 26.26% from 198 to 250 homes. As mentioned at the opening of this report, apartment-style condos are booming with new listings jumping a huge 33.64% with 147 new condos coming on the market in January.
Active Residential Listings
Inventory for residential listings has risen marginally, from 1,295 homes in January 2017 to 1,218 homes last month. That’s an increase of just 6.32% over last year.
Real Estate Sales
Last month, real estate sales in Kelowna escalated sharply, rising 33.61% to 318 sales from 238 sales in January 2017. When you consider that listings only climbed 22.74%, these latest stats may seem alarming at first.
In actuality, there were 95 more homes listed than were sold in January 2017 and this year, the difference between new listings and sales amounted to a net positive of 107 homes.
Confused? Don’t be. All this means is that the List to Sell Ratio is virtually the same this year as it was last year.
Monthly Sales by Price – January 2018
Residential Property Sales
Single-family home sales skyrocketed by 38.83% last month, rising from 103 deals in January 2017 to 143 in January 2018.
Days On Market
While there’s been an increase in sales activity, homes are also sitting on the market longer. It could be that the new mortgage rules are creating some minor shifts in the market, it might be that some people are overpricing their homes, or it could just be that the snowy weather put a freeze on the market. It’s too early yet to determine whether this is a small blip or a bigger trend, but we will be keeping an eye on these numbers.
|Days on Market|
|Property Type||Jan. 2018||Jan. 2017||Percentage Difference|
|Condo – Apartments||65||59||10.10%|
The total average for all residential homes is 73 days on market, so homes took nearly 14% longer to sell.
Real Estate Inventory
Inventory levels had been rising over the last few months of 2017 but that trend seems to be slowing as we break into 2018.
3-Year Inventory of Active Single-Family Residential
January inventory levels for residential real estate were up 6.32% over the previous year, including everything from acreages to condos and waterfront property. As you can see in the chart below, single-family homes and waterfront homes have seen the biggest gains, but townhomes have taken a hit.
|Property Type||Dec. 2017||Dec. 2016||Percentage Difference|
|All Residential Properties||1,295||1,218||6.32%|
|Condo – Apartments||284||244||16.39%|
|Waterfront Single-Family Homes||58||46||26.09%|
Kelowna Real Estate Prices
Average house prices in Kelowna left many people dumbfounded last year, but it looks like the sky-high prices aren’t done with us yet. The average price of a residential property in Kelowna, including condos, townhomes, and mobile homes, was $546,463, up 16.3% from $469,892 in January 2017.
Kelowna Home Prices – Single Family Residential Average
Average List Price
In January, the average price of a single-family home was $699,352. That’s $93,655 more than the average price in January 2017 and we haven’t even hit the spring selling season yet.
January also typically has the lowest average home prices in comparison to the rest of the year. If you’re considering buying a new home this year, you may want to consider doing it sooner rather than later as there really is no telling where these home prices are going to go.
If you’re planning to sell your home, be sure that you choose your Realtor carefully so that you don’t leave money on the table. A quick sale isn’t always the best sale, and that’s especially true in this market. On the flipside, listen to your Realtor’s recommendations for pricing your home to ensure you find that perfect spot between generating offers and a swift sale.
*Unless otherwise noted, all stats are for Jan 2018 compared to Jan 2017 and cover the Central Okanagan region. Statistics are provided by the Okanagan Mainline Real Estate Board.