April started off slower than in recent years, which is to be expected given the current state of the market, but interestingly, rather than 'ramping up' heading into May, Agents are reporting the phones quieter.
Why? Well, there is no real reason. Interest Rates are looking more settled, the Mortgage Stress Test is here to stay, (the effects now seem to be flattening out - see the graph below) and Economic Indicators are improving for the Okanagan according to the latest Report.
Kelowna & Central Okanagan Real Estate Sales April 2019.
- Sales were up 22.9% on last month.
- Single-Family Homes sales up 45%
- Strata sales up 6.5%.
Compared to last year -:
- Overall sales were down 13.3%
- Single-Family Home sales down 10.8%
- Strata sales down 12.2%.
Total levels of Inventory are rising in the Central Okanagan.
As at April 30, 2019 -:
Residential 1153 units - 25.5% increase.
Condo - 618 units - 33.2% increase.
Town Homes - 433 units - 61.6% increase.
April 2019, Median Prices, compared to April 2018-:
Residential Home $635,000 down 3.8%.
Condo Price is $373,750 up 9.9%.
Town Homes $481,500 up 1.7%.
The Effect of Speculation Tax on the Kelowna Real Estate Market
So what has the effect of the Speculation Tax has been on the Kelowna Real Estate Market?
According to the BC Real Estate Association, while it has definitely had an effect on the Market, it is interesting to see, that it has not had such a dramatic effect as in Vancouver.
The more subdued Market in Vancouver is, of course, having a 'knock-on' effect on our Real Estate Market, as is the continued Economic Downturn in Alberta.
So what does this mean for the Kelowna Real Estate Market in the Short Term?
It looks like it is going to continue to be a Buyers Market, but remember not everyone has to sell, so Buyers tread carefully, if you are deciding to 'lowball'!
Make sure you have a 'reasoned argument' for your price and all parties be prepared to negotiate!