For the past few months, we’ve been talking about Kelowna’s seller’s market and how low inventory is leading to higher home prices in the Central Okanagan. And while the March numbers show that inventory is still down in comparison to 2016 and 2015, things are starting to pick up with the nice weather.
Numbers show that listings are starting to pick up overall, but inventory remains very low for homes priced under $600,000. In March 2017, just 125 homes were listed below $560K; that number was 240 for March 2016. With steady demand and decreased supply, we are now seeing homes selling for above asking price, with some buyers ending up in bidding wars as they seek to find their new home. If we look at the year to date listings, we see that there’s been a 24.6% decrease in
If we look at the year to date listings, we see that there’s been a 24.6% decrease in inventory below $600,000 when comparing 2017 to 2016. The first quarter of 2016 saw 682 properties listed for $599,000 or less and that number has dropped to 514 for the first quarter of this year.
Single Family Monthly Listings by Price
Single Family YTD Listings by Price
A spike in Kelowna’s average home price
Disparity between supply and demand is leading to a spike in Kelowna’s average home price for single family residential units. Some of this increase may be due to higher inventory in the upper price points and newly built homes in Kelowna’s top developments. But it’s still worth noting that Kelowna’s average home price has been at or above $600,000 since last May.
Going back to inventory, we see an even bigger drop in active listings when we compare March 2017 with March 2015. Two years ago, there were 1,196 active single family listings in the month of March; this year, that number is just 716. That’s a 40% decrease in active listings for single family homes.
Kelowna’s Average Home Price – Single Family Residential
3-year Inventory of Active Single Family Residential Homes
What does this mean if you’re selling a home in Kelowna?
If you’re selling a home for less than $560,000, you’re in luck. The demand is still here, but the inventory isn’t and we are seeing fewer days on market too. On the other hand, there is more competition for homes in the $600K – $999K range, so homesellers shouldn’t be fooled by the frenzy around Kelowna’s seller’s market.
No matter where you land on the home price scale, a well-staged, professional photographed and properly priced home will always sell quickly and for top dollar. Be sure to choose a licensed REALTOR who can help you make the most of this opportunity.
What does this mean if you want to buy a home in Kelowna?
If you’ve read through this article and looked at the charts, there’s a decent chance that you might be concerned about buying a home right now. This is especially true for first-time homebuyers who may feel like home ownership is getting further out of reach. But while the current real estate market isn’t without its challenges, it’s not all bad news either!
- Mortgage rates are still low so now is a great time to get on the property ladder. Interest rates in the U.S. have started to go up and there’s a good chance that Canada will soon follow.
- First-time homebuyers are investing in Kelowna and we’re still seeing people relocating to Kelowna from Alberta and Vancouver. We expect that demand will remain steady for the foreseeable future so if you’re waiting for the market to collapse, don’t!
- A great home in the right location will always command a certain amount of value. Choose a home that you can make work for at least five years and you will be more likely to see a solid return on investment.
If you’re looking to buy a home in Kelowna, work with a licensed REALTOR and experienced mortgage broker. Your REALTOR can help you find a home that meets your needs while offering a strong investment opportunity, whether you’re looking for a fixer-upper, a condo, or an RU-6 home in downtown Kelowna. You should also be prepared to offer above asking for your perfect home, as well as a possible bidding war for said property. By working with your mortgage broker and REALTOR, you can help make your offer as attractive as possible.