Market Update: Are we inching towards a balanced market?

    Welcome back to another exciting Kelowna real estate market update! For a few months there, it seemed like we were on repeat, talking about the seller’s market in Kelowna and what it means for you. But this most recent update for July 2017 brings us some interesting shifts in real estate.

    Seller’s markets are great for investors looking to offload properties, homeowners looking to downsize and your Realtor (we’ll tell it like it is!). But for nearly everyone else, a seller’s market is a less than ideal situation. Thankfully, for the second month in a row, we are seeing some very early signs of a return to a more balanced market.

    We’re still a long way from being able to officially declare that the trend is sticking, but our fingers are crossed that we continue to see the market cool down for the sake of Kelownians (Kelownans? Who knows…).

    Real Estate Listings

    After many months of falling inventory levels and a drop in new listings, we are thrilled to report that we are seeing an increase in listings and active inventory in the Central Okanagan.

    Single Family Monthly Listings by Price

    New Residential Listings

    The number of new residential listings in July 2017 was up 13.37% to 916 from 808 in July 2016. Of those, 449 are single family homes.

    Active Residential Listings

    The number of active listings climbed 7% from 1,805 in July 2016 to 1,933 in July 2017.

    Real Estate Sales

    It’s not every day that you hear a Realtor say that they’re happy about a drop in sales, but we are! Right now, we’re seeing some relatively small declines in the number of homes sold when comparing July 2017 to July 2016.

    Residential Property Sales

    Last month, there were 614 residential homes sold in the Central Okanagan, a 7.67% decrease from 665 homes sold in July 2016. Of the 614 sales, 282 of those were single family homes, which is a 12.96% drop from the 324 homes sold in July 2016.

    Days On Market

    Despite an increase in listings and drop in the number of sales, properties are still moving more quickly than they were a year ago. Residential properties took an average 41 days to sell in July, which is 20.17% decrease from the average of 52 days in July 2016.

    This is particularly impressive when you consider that a lot of our inventory is in the million dollar plus range, which typically takes longer to sell. So the Days on Market for a home priced at $600,000 or less is likely significantly less.

    Monthly Listings by Price – July 2017

    Check out how many homes were listed for $600k or more last month…

    Monthly Sales by Price – July 2017

    Check out how many homes sold for $600k or more last month. There’s a big difference between listings and sales at the higher end of the market.

    Real Estate Inventory

    Inventory in the Central Okanagan is slowly climbing, but we are still in need of more listings at the “lower” end of the market. Homes priced at $550,000 and under are in demand and a lack of inventory here is helping to keep prices high across the board.

    It’s aso interesting to note that we saw more listings hit the market in July than in the Spring months, which is traditionally the peak for new listings and inventory. This could be due to the unusual weather this year, or it could be an indication that seller’s are trying to capitalize on the market before housing prices cool down and mortgage rates rise again.

    Current Real Estate Inventory

    At the end of July, there were a total of 1,933 residential listings on the market while in July 2016 that figure was 1,805. This is a 7.09% increase in amount of residential inventory in July. Of those 1,933 listings, 898 of them were single family residential, a 15.57% increase over the 777 available homes the previous July.

    Single Family Residential Average Prices

    kelowna average home price july 2017

    Kelowna Real Estate Prices

    House prices in Kelowna remain high, but that doesn’t necessarily mean that buys are purchasing them. This is why it’s so important for both buyers and sellers to work with an excellent real estate agent and brokerage.

    The list price that you see online doesn’t necessarily indicate the true market value of a home. It’s possible that you could get a property for less under the right circumstances. For sellers, a good real estate agent should help you price your home fairly and ensure that the marketing for the property is strong. This is true at all price points, but especially at the mid-high level in the Central Okanagan where there are fewer potential buyers.

    Average List Price

    The average list price for a single family residential home has dropped back below the $700,000 mark after it climbed to $716,474 in June. The average list price is currently sitting at $692,838 and the average price of all residential listings, including condos, townhomes, single-family homes and manufactured homes, is $547,097.

    Single Family Monthly Listings by Price – July 2016

    single family monthly listings by price - July 2016

    *Unless otherwise noted, all stats are for July 2017 compared to July 2016 and cover the Central Okanagan region. Statistics are provided by the Okanagan Mainline Real Estate Board.

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