As we look back on the last month in the Kelowna Real Estate Market, Buyers and Sellers can totally be forgiven for feeling confused!
There have been several times this month where I have shaken my head!
Overall, showings have been much slower, and we have seen many Sellers reduce prices to encourage Buyers to ' hop off the fence'. In some cases, it has worked and in others, it has not, which has left some really well-priced properties for sale.
Buyer sentiment certainly seems to be that the Kelowna Real Estate Market is softening, but I still had Buyers in multiple offer situations.
Kelowna Real Estate Sales July 2018
July continued to see sales numbers follow a downward trend, with totals sales down 31.4% on this time last year. Single Family Homes sales are down 29.6%, Strata Sales 30%, Manufactured Homes 20% and Lots down 60.4%.
Total Residental inventory as at the end of July 2018 stood at 3029 units up 30.1% from this time last year.
So is this likely to contribute towards downward pricing pressure?
This graph really puts things into perspective.
Although there is a significant increase in inventory from last year, when you look at the 10-year average, it is still low.
July 2018 Kelowna Real Estate - Median Sale Prices
This is the reality of the current Kelowna Real Estate Market -:
- Single Family 2017 $645,500 2018 $702,500 Increase of 8.8% - Trend is Rising.
- Condos 2017 $296,500 2018 $325,000 Increase 9.6% - Trend is Falling.
- Townhomes 2017 $44,500 2018 $500,000 Increase 13.5% - Trend Rising.
Who are the current Buyers in the Kelowna Real Estate Market - June 2017
One of the reasons we are still seeing upward price pressure is that we are still seeing Buyers, and especially families, moving into the Okanagan from areas such as the Lower Mainland, where our prices still represent good value.
Here are the results of the Okanagan Mainline Real Estate Board (OMREB) Buyers Survey Results for June 2018.
16.58% First Time Purchase (up from 16.2% in May)
13.01% Move Up Purchase (down from 16.9%)
23.21% Relocating to Similar Property Type (up from 20.2%)
13.52% Revenue/Investment (down from 15%)
14.8% Downsizing (up from 12.8%)
5.61% Moving from Single-family Home to Strata Unit (up from 5.5%)
2.55% Moving from Strata Property to Single Family Home (down from 2.9%)
6.38% Recreational Property (down from 7.4%)
1.79% Retirement Home/Seniors Community (up from 1.0%)
Buyer Type (Family Dynamic):
30.71% Two Parent family/children (up from 24.5% in May)
21.57% Couple without children (down from 29.7%)
19.8% Empty nesters or retired (down from 22.8%)
11.68% Single female (up from 10.2%)
11.17% Single male (up from 9.3%)
3.30% Single parent with children (up from 2.4%)
53.79% From within Board area (up from 52.8% in May)
20.45% From Lower Mainland/Island (down from 21.6%)
9.34% From other Areas BC (up from 7.0%)
11.62% From Alberta (up from 9.9%)
1.26% From outside Canada (down from 3.5%)
2.53% From E Canada/Maritimes (up from 2.5%)
1.01% From Sask./Manitoba (down from 2.4%)
0.00% From the NWT/Yukon (no change from 0.00%)
To sum up - Kelowna Real Estate Market
There are definitely pockets of our Real Estate Market that are still busy and other areas that are quiet.
Inventory is rising, but so are home prices, as people are still finding the Okanagan to be a great place to move to and our Economic indicators are still good.
Interestingly, we are just experiencing a late 'spurt' of Parents purchasing Condos in and around the University area, as there have been some good deals to be had recently.
Sellers - stick with it! Buyers - don't be afraid to negotiate, the worst that can happen is the Seller says no!
Buyers will recover and adapt to the Mortgage Stress Test changes, and we will know in the Fall whether the propose Speculation Tax will be coming into force.
If it does not, we may see a flurry of purchases in the 'mid-market and a reduction in inventory, as some Sellers will no longer feel the need to sell.