Kelowna Real Estate Market News

We've seen another increase in new listing inventory this month, and as interest rates took another jump it has had a significant effect on sales numbers, in the Kelowna Real Estate Market, which has continued to temper home price growth.

The higher mortgage rates have caused many homebuyers to pause their search, especially, as there are further predicted interest rate rises, and leaving others unable to afford their next move.
Everyone, of course, has an opinion, and some are predicting quite the correction in the real estate market due to the interest rate rises.

The reality is there has been a downward adjustment on move-up buyer budgets, it has taken some first-time buyers and investors out of the market, and generally buyers are taking longer to decide and offering more aggressively. This clearly affects demand for homes, and with supply rising, we are bound to see downward pressure, but it is impossible to predict by home much right now.

Interestingly, Median Sale Prices showed...
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The British Columbia Real Estate Association (BCREA) reports that a total of 7,136 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in June 2022, a decrease of 35.7 per cent from June 2021. The average MLS® residential price in BC was $951,105, a 4.6 per cent increase from $909,657 recorded in June 2021. Total sales dollar volume was $6.8 billion, a 32.8 per cent decline from the same time last year.

“While a still growing economy and robust population growth point to strong demand, it is increasingly difficult to satisfy that demand at current interest rates,” said BCREA Chief Economist. “As a result, sales activity across the province, but especially in more expensive markets, continues to slow.”

For the second straight month, yearover-year provincial active listings rose, with listing in June 16.4 per cent higher than this time last year. While active listings remain below what is typical for a balanced market, some markets...

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The latest Association of Interior Realtors Buyer Survey Results for June 2022 are now out.

Move-up Buyers were well down last month, which may be the first signs of the Mortgage interest rate rises having an effect on the Real Estate Market.

They were slightly fewer buyers from my local area and also if you are from the Lower Mainland, who had previously been Buying in bigger numbers in our Market.

The North Okanagan / Vernon area took a bigger percentage of Buyers last month.

Here are the full results.

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

First Time Buyer – 16.85% (15.94%)

Revenue Property Investor – 11.80% (12.88%)

Moving Up – 10.67% (19.21% )

Similar Property Type – 22.75% (19.00%)

Downsizing – 16.01% (15.72%)

Single-family Res to Strata – 5.62% (4.80%)

Recreational Property – 8.43% (8.08%)

Retirement Community – 2.25% (1.75%)

Strata to Single Family – 2.53% (1.97%)

Describe the Buyer (family dynamic):...

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Both Buyers and Sellers are watching the real estate market very closely at the moment, as the market continues its shift.

Predictions that a recession is on the way, inflation is continuing to rise and further interest rate rises are coming, are all definitely having an effect on consumer confidence.

We know that interest rates are going to continue to rise and this will affect Buyer's purchasing power in the coming months, inflation is also biting into people's incomes, but we have not started to go into a recession yet. So it is a little surprising how much of an effect is having on the Kelowna Real Estate Market.

Looking at last month's buyer survey results the number of First-Time buyers was lower, but interestingly the Moving Up & Empty Nester buyers were busier in our Real Estate Market. Also, while inventory continues to rise, overall inventory levels in the Central Okanagan are still on the low side.

The result has seen many Sellers adjusting their pricing downloads to...

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The latest Association of Interior Realtors Buyer Survey Results for May 2022 are now out.

First-Time Buyers were less busy in the market last month, so this will be one to watch, as this could be an indicator that higher interest rates are beginning to affect their purchasing power.

Move-up buyers were busier, which could also be a sign that they are trying to move before rates rise further.

Interestingly, there was also a reduction in people moving from the lower Mainland, which could be due to homes taking longer to sell there now and the general 'softening' of the market there.

Couples without Children and Empty Nesters were also busier in the market.

Here are the full results.

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

First Time Buyer – 15.94% (18.24%)

Revenue Property Investor – 12.88% (13.19%)

Moving Up – 19.21% (14.95%)

Similar Property Type – 19.00% (19.78%)

Downsizing – 15.72% (17.14%)

Single-family Res to Strata – 4.80%...

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