When we look at the sales figures for the Kelowna Real Estate Market in January 2021 it will seem that the market is slowing. The reality, however, is that it is 'very hot' and it is the lack of inventory that is slowing the market.
I have heard many stories of multiple offers during the last month and buyers having nothing to view.
We are seeing quite a few properties come on the market now where the Seller will not look at offers for a couple of days after listing, as they were wanting to maximize the number of buyers bringing forth offers.
Kelowna & Central Okanagan Real Estate Sales January 2021.
January Residential Real Estate sales numbers were down again compared to December 2020, but continue to be up significantly compared to January 2020.
The current sales numbers are actually more to do with lack of inventory than Buyers looking to purchase.
Compared to the last month-:
- Total Sales were down 12.1% last month.
- Single-Family Homes sales down 12.5%.
- Strata sales down 7.4%.
Compared to last year sales numbers were up again.
- Overall sales were up 65%
- Single-Family Home sales up 54.8%.
- Strata sales were up 83.3%.
Inventory Levels January 2021
Inventory levels continue to be low in all main sectors -:
Total listings in the Central Okanagan are now 1450 up from 1,406 last month and down from 2,273 last year.
Single Family & Bare Land Strata Residential 421 units down from 452 last month and down from 819 last year.
Condo - 378 units up from 368 units last month and down from 465 last year.
Town Homes - 203 up from 172 last month and down from 284 last year.
Overall, inventory is down 36.2% on last year, Single Family Homes listings are down 48.6% from this time last year, Condo listings are down 18.7% & Townhome listings are down 28.5%.
Single-Family Homes - in depth
Single Family Home Sales (including Bare Land Strata) -:
Number of Sales January 2021
$450k - $699k 2021 64 2020 56
$700k - $999k 2021 64 2020 38
$1m plus - 2021 52 2020 14
Looking at a breakdown of the most affordable market sector, there were only 3 homes sold under $500,000, 25 under $600,000 and 36 under $700,000, highlighting the cheaper affordable homes are becoming a rare commodity.
The Average Final List Price to Actual Sale price was 98.9% in January 2021, indicating the importance of pricing the home correctly for sale.
Price Range Number of Listings Days on Mkt Months of Inventory
$450k - $699 81 (2020 - 228) 40 (2020 - 58) 1.1 ( 2020 3.9)
$700k - $999k 130 (2020 - 259) 26 (2020 - 86) 2.0 (2020 6.8)
$1m plus 191 (2020 - 272) 53 (2020 - 121) 3.7 (2020 19.4)
Last Month Single Family Home sales - Sales in all sectors were higher than last year.
Inventory - remains lower in all price ranges, particularly in the $450,000 to $699,000.
Days on the Market - homes continue to sell at a much quicker rate than last year.
Months of Inventory - down in all sectors and the shortage in the most affordable price range is acutely low. It is a Sellers Market in all ranges.
My thoughts this month....
For Sellers, particularly of affordable Single-Family homes, now is the time to sell, so give me a call and chat about your particular circumstances, so we can make a plan!
For any Buyers entering the market right now, you really need to be 'ready to go'.
Properties in the affordable price ranges are tending to go into multiple offers immediately, so it is likely you will only be able to view one property at a time and to make sure your offer shines against others you have to be at least pre-approved for financing.
Looking at the BC Real Estate Forecast for January 2021, the Interest Rate Forecasts & Economic Forecasts for BC, it looks like the Real Estate market is going to continue to be 'hot' for some time yet. It is not a question of 'holding off' if you see the right property now, it will be a question of putting your best foot forward, as prices remain on an upward trajectory!
Although the current vaccine rollout is slower than we all hoped, the Government has indicated that most people will be vaccinated by September which will be in time for the next University and College school year.
On the back of this news, we saw a very positive uptick in UBCO Condo sales last month, with 9 sales, at a time when sales are usually slow.
Some Buyers have certainly picked up bargains, as the University Condo market was weak in 2020 so I am hopeful for Sellers that the market should start to improve once the current listings have 'washed-through' the system.
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 - Downtown Kelowna Christmas 2020.