The Kelowna real estate market has been heating up over the last couple of years and competition has been particularly fierce this spring. The latest stats from the Okanagan Mainline Real Estate Board show that inventory is still low, particularly for homes priced below the $560,000 mark.
This month, we’re taking a closer look at what the current ‘Seller’s Market’ means for you. As it stands, not all Seller’s Markets are created equal and there’s a pretty big variation in competition at different price points.
3-Year Inventory of Active Single Family Residential
Single Family Residential Average Prices
The low inventory has caused home prices in Kelowna to rise quickly. In March, the average price for a single family residential home was more than $630,000. In April, that price rose to more than $660,000. But despite the increases in price, there is still significant demand for homes and it’s not uncommon to see multiple offers on properties and homes snapped up within 24 hours of hitting the market. We’re regularly hearing from buyers and agents that they are desperately looking for a home that meets their needs.
April 2017 Sales-to-Active Listings Ratio
Which brings us to the current state of the real estate in Kelowna. A Seller’s Market is often defined as a sales-to-active listings ratio that is 20% or higher. In April 2017, sales of single family homes in the Central Okanagan were 255 and active listings for the same month were 782. That gives us a sales-to-active listings ratio of 32.6%.
Ratio of Sales to New Listings
For the purposes of this article, let’s take a look at the ratio of sales-to-new listings for the year to date. This isn’t taking into account the inventory that carries over from the year; it’s a look at what’s coming and going.
The price point with the lowest ratio is the million-dollar and higher market with a ratio of 28% for the year to date; 175 homes have been listed this year and 49 have sold. If we look at the first four months of 2017, six of OMREB’s thirteen price ranges have ratios of 100% or more. That means that for every home listed, one or more are being sold.
Looking at the chart above, we can infer that the fiercest competition for homes is in the $450k and lower range. The rapid pace lets up a little bit as we climb higher up the pricing ladder, but we’re still looking at a Seller’s Market across the board.
What does this mean if I’m buying real estate in Kelowna?
Kelowna homebuyers need to make sure that they have solid lending options and are prepared for several different scenarios; multiple offers, paying above asking, and submitting an offer with few conditions. Home buyers should also choose a dedicated buyer’s agent who is actively searching for MLS homes for sale and networking with other agents to get early leads on new properties. With the right Realtor, the Kelowna home market isn’t as overwhelming as you may think.
What does this mean if I’m selling real estate in Kelowna?
There’s huge demand for homes priced below $500,000, so expect a quick sale for a well-priced property. If your home is in the $600,000 and higher range, you might have some more competition for buyers, so be sure that your home is priced properly and that it’s clean, staged, and the photos are professionally done. These are all things that the best Kelowna Realtors will be keeping an eye on, including the team at Walker Real Estate.
Did you know? We typically see a peak in the number of new listings per month in April and May? Since spring has been a bit slow to start, it’s likely that we can expect more people to list their properties in May this year, so be sure that your seller’s agent is ready to work hard and find you your new home!