It's been another busy month for the Kelowna Real Estate Market.
Bidding on properties has been 'fierce' at times and I have heard many stories of multiple offers, with the most being 15 offers on 1 home!
Buyers really have to be well prepared for what's ahead and ready to be disappointed several times over before being successful with an offer.
When viewing single-family homes, in particular, half-hour showing windows have been the norm, typically over a weekend with offers looked at on a Monday or Tuesday.
Even with whispers that fixed mortgage rates may start to rise, with inventory still low, there currently seems no end in sight for this hot market.
Kelowna & Central Okanagan Real Estate Sales February 2021.
As you can see February Residential Real Estate sales numbers bounced back significantly in February 2021.
Compared to the last month-:
- Total Sales were up 65% last month.
- Single-Family Homes sales up 51.7%%.
- Strata sales up 64.1%
- Lots up 125%.
Compared to last year sales numbers were up again.
- Overall sales were up 141%
- Single-Family Home sales up 130%.
- Strata sales were up 122%.
- Manufactured Homes up 185%
- Lots up 414%
Inventory Levels February 2021
Inventory levels continue to be low in all main sectors -:
Total listings in the Central Okanagan are now 1406 down from 1,451 last month and down from 2,445 last year.
Single Family & Bare Land Strata Residential 432 units up from 422 last month and down from 878 last year.
Condo - 381 units up from 379 units last month and down from 494 last year.
Town Homes - 176 down from 201 last month and down from 322 last year.
Overall, inventory is down 42.5% on last year, Single Family Homes listings are down 50.8% from this time last year, Condo listings are down 22.9% & Townhome listings are down 45.3%.
Single-Family Homes - in depth
Single Family Home Sales (including Bare Land Strata) -:
Number of Sales February 2021
$450k - $699k 2021 66 2020 56
$700k - $999k 2021 129 2020 40
$1m plus - 2021 82 2020 13
The lower sales numbers in the most affordable price range, are more to do with lack of inventory at this price point.
There are many homes that have now 'spilt over' into the $700k plus price range, and we have seen a significant increase in middle sector sales compared to last year.
We are also seeing a big jump in sales of over $1m.
Price Range Number of Listings Days on Mkt Months of Inventory
$450k - $699 72 (2020 - 240) 18 (2020 - 39) 1.09 ( 2020 3.81)
$700k - $999k 140 (2020 - 278) 18 (2020 - 78) 1.09 (2020 6.95)
$1m plus 198 (2020 - 288) 28 (2020 - 103) 2.65 (2020 28.62)
Last Month Single Family Home sales - Sales in all sectors were higher than last year, 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 4 weeks.
Months of Inventory - down in all sectors and the shortage in the more affordable price ranges is acutely low. It is a Sellers Market in all ranges.
My thoughts this month....
Everyone wants to know how long this is likely to continue.
I read an interesting article in the Feburary 2021 Institute of Luxury Homes Real Estate Market Report, which might give some clues on that.
"Work/lifestyle balance may have been a trend that was cemented by the pandemic in 2020, but this initial trend has long been in the making as people recognized the need to de-stress their lives."
"As we move in 2021, there is an expectation that this will be one of the lasting trends and exurban, rural, and resort locations will be the beneficiaries. The pandemic is still fueling the uptick in numbers of new residents who are now ready to enjoy the perks of these lifestyles, especially given that they can work from home."
This seems to describe areas like Kelowna, & if this comes true, we should continue to see strong demand for single-family homes & townhomes in this area.
It is likely to be later in the year or even next year before we see demand stronger for condos
In the immediate future, I can see no respite for increasing prices, but there will come a point where homes become unaffordable for working-family buyers, for example, as they can no longer qualify for the higher mortgages needed.
I am just starting to see condo pricing come back in the University area. Hopefully with the vaccine for Covid students will be able to attend UBCO in person this fall. We are therefore starting to see some parents looking and prices seem to be more in buyers favour this spring.
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.