June was a much busier month in the Kelowna Real Estate Market, as we saw a gradual easing of travel restrictions and all parties adapting to social distancing guidelines.
Homes in the affordable housing market continued to show strong activity and well-priced homes saw a number of multiple offers.
The dramatic increase in sales in June was a reflection of the increased activity that started in May, and by the end of the month, sales had overtaken the numbers for this time last year.
Kelowna & Central Okanagan Real Estate Sales June 2020.
Compared to last month-:
- Total Sales were up 71% last month.
- Single-Family Homes sales up 88%.
- Strata sales up 58%.
Compared to last year sales numbers again showed a positive improvement.
- Overall sales were up 9%
- Single-Family Home sales up 18%.
- Strata sales were down 3%.
Inventory Levels June 2020
Inventory levels are up in all main sectors -:
Total listings in the Central Okanagan are now 3,049, up from 2,917 last month and down from 3,502 last year.
Single Family & Bare Land Strata Residential 1,156 units up from 1,122 last month and down from 1,416 last year.
Condo - 702 units up from 616 units last month and up from 676 last year.
Town Homes - 408 units up from 397 units last month and down from 423 last year.
It is quite normal for inventory levels to be up at this time of year, with the overall numbers down from this time last year, except for Condos, which remain higher.
Single-Family Homes - in depth
Single Family Home Sales (including Bare Land Strata) -:
Number of Sales June 2020
0 - $450k 2020 18 2019 15
$451k - $699k 2020 122 2019 118
$700k - $999k 2020 91 2019 61
$1m plus - 2020 33 2019 22
Price Range Number of Listings Days on Mkt Months of Inventory
$451k - $699 277 (2019 - 416) 31 (2019 - 36) 2.27 ( 2019 3.53)
$700k - $999k 416 (2019 - 440) 57 (2019 - 42) 4.47 (2019 7.21)
$1m plus 379 (2019 - 443) 75 (2019 - 75) 11.48 (2019 20.14)
Last Month Single Family Home sales - sales were up in all prices ranges.
Inventory - down in all price ranges.
Days on the Market - have decreased in the affordable range, remained steady in the higher range and increased in the mid-range.
Months of Inventory - down in all sectors. In the $45k-$699k range, it remains a Sellers Market, more balanced / Sellers Market in the mid-range and a Buyers Market in the $1m plus sector.
Kelowna Real Estate sales bounced-back strongly in June, following a much quieter April and May, as a result of COVID-19.
Key factors to continue to watch -:
1. Inventory Levels - were up last month. This is normal as this time of year is regarded as 'peak selling' season. There were also a number of Sellers who delayed putting their properties on the market during April and May. The overall trend compared to last year is lower. Rising inventory as a 'trend' could lead to downward pricing pressure.
2. Strata Insurance Premiums & their effect on Strata Budgets. We are continuing to see hefty increases Insurance Premiums & deductibles, which has been catching some Strata Corporations out, resulting in special levies and/or Strata Fee increases.
3. Tightening of Lending Policies - CMHC tightened their lending policy again recently, making qualifying for mortgages more difficult for some. It should be noted that not all Mortgage Guarantee Companies followed this policy.
4. The ongoing effects of Covid-19 - There have been a number of impacts on the real estate market as a result of the pandemic. These include -:
a) The difficulty in Owner Landlords being able to offer vacant possession, as a result of being unable to ask current tenants to leave. (This is easing now.)
b)The UBCO school year will largely be starting online and so a number of tenants will not be taking up their rentals this fall. This has weakened rental, investor & buyer demand for UBCO Condos in the short term. This is likely to be a short- term issue, & we could well see an increase in demand towards the end of the year when the students go back to full-time on-site learning. It remains to be seen how this will affect foreign students.
c) The difficulty in out of province buyers being able to travel to our area to view properties.
d) The concern that we will have a second Covid-19 outbreak.
e) The fear that we could see a downturn in the market next year when we see the full effects of how the Pandemic affected such things as business, employment, consumer debt levels and overall consumer confidence.
On the positive side -:
a) There are still some excellent mortgage rates available to buyers.
b) The announcement that UBCO will be building a mixed-use development featuring academic space, office space & university rental housing on Doyle Avenue in downtown Kelowna.
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