March 2021 was another hugely busy month in the Kelowna Real Estate Market.
There were many disappointed buyers who really put their best foot forward, had the least subject conditions they could, and were still not successful in buying a home.
With the number of buyers who are continuing to look and the level of inventory coming onto the market, one would have to say that the current pricing increases are likely to continue, in the short term.
We have seen a modest increase in Mortgage Rates and also there is now a ‘storm cloud’ brewing, with the banks reviewing the Mortgage Stress Test criteria.
The last time they did this it had a dramatic impact on the market in the short term, so there is every reason to believe that some Buyers may accelerate plans to try and find something before any changes take place in June 2021.
Also, during the last month, UBCO announced that they will be returning to
in-person schooling next year so we have certainly seen a spike in investors and parent buyers looking around the University area and most of the current listings have now been snapped up.
This has resulted in a previously ‘subdued sector’ of the market suddenly becoming very busy and prices are now starting to rise.
Kelowna & Central Okanagan Real Estate Sales March 2021.
March Residential Real Estate sales numbers have lept again.
Compared to the last month-:
- Total Sales were up 41% last month.
- Single-Family Homes sales up 48%%.
- Strata sales up 36.8%
- Lots up 36%.
Compared to last year sales numbers were up again.
- Overall sales were up 255%
- Single-Family Home sales up 237%.
- Strata sales were up 255%.
- Manufactured Homes up 21%
- Lots up 754%
Inventory Levels March 2021
Inventory levels continue to be low in all main sectors -:
Total listings in the Central Okanagan are now 1401 down from 1,407 last month and down from 2,674 last year.
Single Family & Bare Land Strata Residential 460 units interestingly up from 432 last month and down from 982 last year.
Condo - 373 down from 381 units last month and down from 561 last year.
Town Homes - 153 down from 178 last month and down from 322 last year.
Overall, inventory is down 47.6% compared to last year, Single Family Homes listings are down 53.1% from this time last year, Condo listings are down 33.5% & Townhome listings are down 52.4%.
Single-Family Homes - in depth
Single Family Home Sales (including Bare Land Strata) -:
Number of Sales February 2021
$450k - $699k 2021 66 2020 63
$700k - $999k 2021 206 2020 61
$1m plus - 2021 132 2020 21
The sales numbers in the most affordable price range, are steady, more due to the price of an affordable Single Family Home now generally being over $700,000.
We continued to see a significant increase in middle sector sales compared to last year, and we are also seeing much higher sales numbers in the $1m+ price range.
Price Range Number of Listings Days on Mkt Months of Inventory
$450k - $699 65 (2020 - 258) 17 (2020 - 27) 0.91 ( 2020 3.27)
$700k - $999k 162 (2020 - 330) 15 (2020 - 39) 0.79 (2020 5.41)
$1m plus 215 (2020 - 318) 21 (2020 - 45) 1.63 (2020 15.1)
Last Month Single Family Home sales - Sales in all sectors continued to rise, particularly in the mid-range.
Inventory - remains lower in all price ranges.
Days on the Market - homes continue to sell at a much quicker rate than last year i.e. within 2 to 3 weeks.
Months of Inventory - down in all sectors and the shortage is almost acutely low. It is a Sellers Market in all ranges.
My thoughts this month....
Some Buyers are now definitely suffering from Buyer fatigue, and others are feeling priced out of the market. So there is evidence of some Buyers taking a break.
For those who are needing to qualify for a mortgage, however, this might be a mistake if the new mortgage stress test rules go ahead and suddenly they find themselves unable to qualify for a mortgage.
I do think this is likely to cause even greater demand in the short term in the more affordable end of the market as Buyers look to beat the June deadline. We may then see some kind of 'pause' in the market while Buyers pivot and adapt if they can.
There is now also a shortage of inventory around the University for condos and student type accommodation.
My advice to parents is to contact me now and start your search right away and be ready with your mortgage pre-approval if needed.
Most of the new listings are likely to come onto the market when this year student population leaves at the end of April.
While this may all seem good news for Sellers, the reality is they are also feeling the pressure. Once they have sold their property they then become buyers themselves and entering the market can also seem quite daunting, which may be an additional factor in the lack of inventory at present time.
Sellers - make sure you allow plenty of time to find a new home and think very carefully about making your sale 'subject to the seller finding a new property, as many buyers may decide that waiting for you to find a new home is too much of a risk, with such a fast-moving market.
As always, if you aren't local, this is not a problem, we can view homes via video call, and many listings have virtual walkthroughs to give you a head start!
If you would like to receive specific information about your own buying and selling needs in the Kelowna & Central Okanagan area please call or email me and my current listings can be viewed at https://www.trishcenci.com/mylistings.html
This months photo -