The Kelowna real estate market is experiencing a transition. In recent years, you may have become accustomed to hearing how ‘hot’ the local real estate sector has been, but the tide is showing some consistent signs of turning.
The latest stats from the Okanagan Mainline Real Estate Board (OMREB) reveal that there were 526 sales in the Central Okanagan for June 2018. That’s a decrease of 22.65% when compared with June 2017 (680 sales). What’s more, this is the fourth month in a row where numbers have been down, so it is beginning to look like a trend.
There’s no single factor driving the decrease in sales. From new mortgage rule measures, increasing interest rates through to the speculation tax, there are many factors at play. However, what’s certain is that the market is changing.
There is no cause for alarm – in many ways the market is simply normalizing from the incredible increases and highs we’ve seen in recent years. However, it does mean a change in expectations is required. Today’s real estate market is not the same as June 2017’s market.
Make no mistake, plenty of people still want to live in Kelowna, but in a transitional market, many folks want to bide their time and see what pans out. Much of it is contextual, but decisive decisions can be rewarded in a market like this. It’s a market where working with a highly-skilled real estate professional is of even greater importance than normal.
Average property prices are yet to experience a downturn – the average for June in our area was $604,198. That’s an increase of 8% when compared to June 2017 ($557,445). However, this is no surprise as price tends to be one of the last indicators to move.