Kelowna Real Estate Market News

The pace of home sales in the province has slowed in recent months but an unprecedented start to the year still has BC on track for a record-breaking year.


An expected second-half slowdown has arrived, prompted by eroding affordability and a tightening of mortgage qualification rules. However, with the BC economy on track for very strong growth this year and next, along with the eventual return of normal migration flows, home sales are anticipated to remain well above long-run average levels into 2022.


Canadian mortgage rates have remained stable after rising from all-time lows earlier this year. At an average of just 2.14 per cent for a 5-year fixed rate and under 1.5 per cent for a variable rate, borrowing costs continue to be highly supportive of housing market activity. That said, the implementation of a new stress test rate, which is now the higher of a borrower’s contract rate plus 200 basis points and 5.25 per cent for both insured and uninsured mortgages, has likely taken some...

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The Kelowna and Interior Buyer Survey Results are now out for July 2021.


Investors and move-up Buyers were busier last month, while there were fewer people buying similar properties.


Buyers from the Lower Mainland and Alberta were still very active, while there were significantly fewer Buyers in the Kelowna / West Kelowna area.


Please read the full report below.


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


First Time Buyer – 15.69% (16.93%)

Revenue Property Investor – 14.31% (13.75%)

Moving Up – 16.47% (13.94%)

Similar Property Type – 19.02% (24.10%)

Downsizing – 12.75% (13.35% )

Single-family Res to Strata – 6.67% (5.18%)

Recreational Property – 9.61% (7.77%)

Retirement Community – 1.18% (1.39%)

Strata to Single Family – 3.33% (1.99%)

 


Describe the Buyer (family dynamic):


Couple without children – 21.32% (24.51%)

Two-Parent Family /children – 28.88% (25.49%)
Empty nesters or retired – 20.35%...

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The British Columbia Real Estate Association (BCREA) reports that a total of 9,663 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in July 2021, a decrease of 7.2 per cent over July 2020. The average MLS® residential price in BC was $891,687, a 17.1 per cent increase from $761,772 recorded in July 2020. Total sales dollar volume was $8.6 billion, an 8.6 per cent increase from last year.



“Provincial market activity slowed in July with both sales and listings declining on a seasonally adjusted basis,” said BCREA Chief Economist Brendon Ogmundson. “While sales remain robust, listings activity continues to be a concern as inventories trend near record lows.”


Total active residential listings were down 32.2 per cent year-over-year in July and continued to fall on a monthly seasonally adjusted basis. 


Year-to-date, BC residential sales dollar volume was up 124.7 per cent to $73.4 billion, compared with the same period in 2020....

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In a nutshell, lack of inventory and Buyer exhaustion were two of the keys to understanding last month's activity in the Kelowna Real Estate Market.


Buyers are 'ready to write' in a variety price ranges, and they are struggling to find the right property, due to lack of choice.


Some buyers, have been looking for many months, have made & lost out in multiple offers, and are now exhausted with the process!


The biggest question being asked by buyers and sellers - 'are prices going to continue to rise'?


With inventory levels where they are, and the strong appetite for buyers to continue to move to this area, things seem to be set to continue the rising trend, despite some slowing in the Lower Mainland Market.


Influencing Factors -:


1. Are inventory levels starting to stablise?

2. Are the lower sales numbers just our usual summer 'Okanagan slow down', as buyers & sellers take a break for holidays?

3. In the Economy, inflation has been rising, is this just temporary, or is this a trend...

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The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are member’s of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.