What's happening in the Kelowna Real Estate Market seems to be high on the 'Dinner Table' conversation list again!
The Market was definitely slower during June and the number of sales certainly reflects that, but when you look at average sale prices, prices are still rising.
Only this last week I found myself in 2 multiple offer situations in the 'more affordable' condo market, so my Buyer didn't think things were slowing down!!
Kelowna Real Estate Sales June 2018
Kelowna Real Estate sales numbers were both down on last month and well down on this time last year.
Totals sales are down 22.3%. Single Family Homes sales are down 15.3%, Strata Sales 22.6%, Manufactured Homes 12.9% and Lots down 62.7%.
Total inventory is also rising. It currently stands at 3245 units up 21.58% from this time last year.
1195 Residential Up 33.07%
551 Condos Up 32.13%
341 Townhomes Up 30.65%
So with this increase in inventory and falling sales numbers, the question on all Buyers lips is are prices starting to fall?
I'm sure it certainly feels like the should, as they are watching plenty of price reductions around.
But here are the numbers -:
2018 Average Sale Prices YTD
Residential - 2018 $716,274 2017 $672, 688 Up 6.48%
Condos - 2018 $351,281 2017 $334,855 Up 4.91%
Townhomes - 2018 $489,712 2017 $455,748 Up 7.45%
So let's analyse the number of Sales to Active Listings numbers for the Kelowna, West Kelowna & Lake Country Area to show which are Buyers Markets, Sellers Markets, and which are Balanced Markets.
Single Family Homes
0 -$600,000 Listings 215 Sales 74 – 2.9 months inventory - Seller’s Market.
$600,000- $900,000 Listings 552 Sales 123 – 4.5 months inventory - Seller’s Market.
$901,000 - $1.3m Listings 249 Sales 33 – 10.6 months inventory - Buyer’s Market.
$1.31m plus Listings 317 Sales - 24.4 Months Inventory - Buyer’s Market.
Lakeshore Listings 93 Sales 6 - 15.5 Months Inventory - Buyer’s Market.
0-$400,000 Listings 64 Sales 21 - 3 Months inventory - Seller’s Market.
0 - $550,000 Listings 22 Sales 6 - 3.7 Months Inventory- Sellers Market
What is this telling us?
Buyers have more choice, and things are taking slightly longer to sell, so they can now take a second look, usually before making a decision.
Price reductions are a more regular occurrence now, but with average prices not falling, this should be seen as more of a normalisation rather than a falling market.
A reminder of what is causing uncertainty in the Kelowna Real Estate Market?
1. The potential for Rising Interest Rates.
2. Changes to the Mortgage Qualifying Rules – This has dramatically affected Markets from Toronto across to Vancouver, some Buyers, have seen their purchasing power affected by up to 20%.
3. Uncertainty with the Speculation Tax – with Buyers not knowing whether this is going ahead or the details of exactly what it will look like and whether there will there be any exemptions, there are many Buyers in Kelowna and West Kelowna who have put off their 'Buying Decisions' and some have already decided to by in other areas of the Province.
4. Buyers confidence - continuing to get mixed messages.
So what is the rest of the summer going to look like for the Kelowna Real Estate Market?
I think we are in for more of the same type of market as we saw in June - less activity, more Buyers in a 'holding pattern' and properties taking longer to sell.
Whilst this is a lot more nerve-racking for Sellers, as the number of days on the market is starting to rise, it is more healthy overall for our Real Estate Market, as the price rises we were seeing were unsustainable.
Overall, economic numbers for the Kelowna area still look good, and if the Speculation Tax doesn't go ahead in the Fall, we could see some 'pent-up' demand increasing sales numbers in the Autumn.
So my advice is still Buy if you see the Property you want and Sell if you get a fair market price for your property.
Offers have to make sense - it's what the Buyer and Seller are willing to Buy and Sell for at the end of the day!
As always, if you have any specific questions with your Property in the Okanagan Area, please call or email me and I will be happy to help!