April 2018 felt like a 'mixed bag' in the Kelowna Real Estate Market.
The month started with quite briskly with listings and showings, whereas the last week or so, it was much quieter.
On the other side of the coin, I was in Multiple Offers for Buyers looking for a Retirement Rancher, which went well over asking price, I have one Buyer where there are just no Condos in their price point to even start looking and I am working for other Buyers who are looking for a 2 Bedroom Condo nearer to UBCO under $400,000 and there is virtually nothing available!
Trying to work out what is happening with the Market is quite a challenge! It feels that there were a number of factors at work - -:
1. The changes to the Mortgage Rules are beginning to really 'bite' for some Buyers, who have definitely seen their purchasing power reduced.
2. Talk of the new Speculation Tax in BC is breeding uncertainty with Buyers and Sellers.
3. There has been quite a bit of talk about whether the Kelowna Real Estate Market is 'softening'. (I will talk about that more below).
4. We had our first real sunshine of the year, so everyone was out enjoying the sun rather than House- hunting.
Central Okanagan Real Estate Sales April 2018
|Single Family Homes||
Summary of numbers -:
Total sales up 17.7% on last month, and down 16.3% on last year.
Single Family Home sales up 19.9% on last month and down 15.4% on last year.
Strata sales up 7.8% on last month & down 15.5% on last year.
So is the Kelowna Real Estate Market Really Softening?
Because we experienced such a 'rush' of activity in the Market during 2016 and 2017, anything less than that level of activity seems quiet.
What I am actually finding is the is some parts of the market are still hot, some parts 'normalising' and some parts slowing.
So far, in the hot parts of the market, prices are still rising, some parts of the market are balancing and some parts are slowing, which will likely lead to prices softening.
If we look at the months of Housing Inventory we have in the Kelowna area market, that will give us some indicator of demand and supply, which will guide us as to what prices might be doing.
Single Family Homes
0 - $600,000 range, there were 80 sales last month and there is currently 3.2 months of inventory available - Sellers Market
$600,000- $900,000 117 Sales 3.9 months inventory - Sellers Market.
$900,000 - $1.3m 38 Sales 5.7 months inventory - Balanced Market
$1.3m and above - 14 sales 20.9 months inventory - Buyers Market.
Lakeshore Properties - 5 Sales 17 Months Inventory - Buyers Market.
0- $400,000 - 115 sales 2.5 months inventory- Sellers Market.
0 - $550,000 54 sales 2.5 months inventory - Sellers Market.
As you can see, on paper, only the top end of the market has started to balance or swing into Buyers Market territory.
One thing to bear in mind, however, is that some of the upper-end of the market can be more seasonal, particularly Lakeshore Homes.
So, the next couple of months will be very interesting, as we do tend to see more properties coming on the market.
One of the things I am finding with the UBCO Condos this year is that Buyers and investors are being a lot more price sensitive, and the two bedroom and den units, that were very popular last year, have not been snapped up as quickly so far this spring, and yet they are still a good buy, typically at just over $400,000, as rental rates have been going up over the last couple of years.
As always, if you have any specific questions about your own buying and selling needs, please don't hesitate to call or email me!
Tel 250 864 1707