Kelowna Real Estate Market News

The British Columbia Real Estate Association (BCREA) reports that a total of 5,179 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in November, down 33.1% from the same month last year. The average MLS® residential price in BC was $718,903, a decline of 1.9% from November 2017.


Total sales dollar volume was $3.7 billion, a 34.3% decline from November 2017. “BC households continue to struggle with the sharp decline in purchasing power caused by the B20 mortgage stress test,” said Cameron Muir, BCREA Chief Economist. “Most BC regions are now exhibiting a relative balance between supply and demand.”


Total active residential listings were up nearly 31% to 33,500 units in November, compared to the same month last year. However, it should be noted that this compares to 2017 when active listings for the month of November were at their lowest level in more than 15 years.


Year-to-date,...

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BC Real Estate Association has announced its latest Mortgage Rate Forecast today.


With the growth in Mortgages being at the lowest levels in 17 years, it appears that the Mortgage Stress Tets, introduced earlier this year was far too aggressive.


This, together with low Alberta Oil Prices and potential Economic headwinds, such as the closure of the GM Oshawa Plant may have led the Government to rethink their plan to increase rates to quite the same level next year, and the forecast is now calling for only 1 or 2 rate increases next year, which is potentially good news for new borrowers and those on variable rates.


BCREA's Mortgage Rate Forecast December 2018



Midway through 2018, everything seemed to be pointing to sharply higher mortgage rates. The Canadian economy was soaring, the Bank of Canada and its counterpart in the US were resoundingly hawkish and bond yields were testing multi-year highs. However, declining oil prices, the stronger than expected impact of the B20 mortgage...

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While you could be forgiven for not following the Commercial Leading Indicator Reports for British Columbia, as it generally relates to the Commercial Real Estate Sector, it does provide some useful economic indicators, which do impact the Residential Real Estate Market.


The financial component, for instance, can act as an early-warning indicator from financial markets of potential turning points in the Commercial Real Estate market which can also affect the Residential Sector. 


Commercial Leading Indicator Q3 Highlights:


Economic Activity:


Retail sales declined 2.3%on a quarterly basis, after adjusting for inflation, and were 1.8% lower year - over 1 year. Retail sales continue to slow sharply from 2017, during which retail sales grew more than 9%. Wholesale trade was also down in the third quarter, falling by 0.1%. That was the first quarterly decline in wholesale trade in 5 quarters. Sales in the manufacturing sector were essentially flat in the...

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During November 2018 the Kelowna Real Estate Market appears to have headed into its typical winter slowdown, and many sellers have been left wondering what it's going to take to get their home sold, with showings very slow and declining sales prices.


Our Market is firmly a Buyers Market right now and many Buyers continue to sit on the fence, worried about whether they'll be paying too much, what will be the effect of the Speculation Tax now it's in place and will they qualify for a Mortgage due to the Mortgage Stress tests.

Kelowna Real Estate Market Sales November 2018


 


Date


Total

Single Family


Strata


Lots


Manuf

  Nov 18 303 150 113 21 19
  Oct 18 385 190 165 9 21
  Sep 18 375 203 141 11 20
  Aug 18 434 205 191  16 22
  Nov 17 448 213 161 55 19


Overall Sales were down 21% on last month and down 32% on this time last year. Single Family Home sales were down 21% on last month and 29.5% on last year and Strata Sales were down 31.5% on last month...

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When the Real Estate Market changes from a Sellers Market to a Buyers Market, it can be an anxious time for Sellers, as 'days on market' can become a lot longer and showings slower.


Sellers need to be both 'mentally prepared' and be willing to adopt a more aggressive approach to help them achieve a successful sale.


Here are some hints and tips to consider -:


1. Know the Market.


Review a Comparable Market Analysis with your Real Estate Agent. It is essential to know what comparable properties have been selling for.


You also need to know what is the current 'state' of your market and medium-term forecast. Is the market in your area balancing out or still weakening?


2. Should I sell now or should I wait for the market to improve? 


Is waiting for the Market to improve an option for you? If you don't have to sell now it is probably better to wait.


If you have to sell within 30 to 45 days, then you may be looking at having to price your home more aggressively, which may be...

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The latest Buyers Survey Results are now out for October 2018 for the Kelowna and Central Okanagan Real Estate Market.


First-time Buyers weren't as busy this month down to 14.87% from 20.08%, but there were more Investors up from 8.79% to 14.45%


Two-parent families with Children represented the highest Family Dynamic at 28.13%, and slightly more Buyers purchased from Alberta up to 10.7% from 7.48%.


Slightly fewer Buyers purchased in Kelowna - down to 42.06% from 43.21%, however, there were more Buyers purchased in the Vernon area up to 20.87% from 17.28%.


Here are the full results below.

Best describe your most recent Buyer (moving to/from property type)

First Time Buyer – 14.87%

Revenue Property Investor – 14.56% Moving Up – 12.97%
Similar Property Type– 22.15% Downsizing – 18.99%

Single Family Res to Strata – 5.70%
Recreational Property – 5.38%
Retirement Community-1.27%
Strata to Single Family – 3.16% 


Describe the Buyer (family dynamic):...

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