Kelowna Real Estate Market News

Kelowna Real Estate Market News May 2020

I hope you are continuing to stay safe and well out there?
When I have been venturing out people seem to be pretty good, here in Kelowna, about social distancing and trying to 'flatten the curve' as soon as possible.

I'm also getting pretty adept at getting my protective gloves on and off and using my hand sanitizer when visiting properties!

In walking around town over the weekend, I am just starting to see evidence of some shops opening, with their new social distancing protocols, and later this week we will have the BC Government proposals for starting to reopen the Province for business.

There have been some real estate sales going on, and I have still heard of multiple offers on some homes, as buyers still need to buy, but obviously sales numbers in Kelowna, have been affected by the COVID-19 crisis.

Kelowna Real Estate Market Sales April 2020.

To be expected last month's numbers show a dramatic drop.

Last month-:

- Total Sales were down 45.7% last month.

- Single-Family Homes sales down 43.4%.

- Strata sales down 53.3%.

Compared to last year -:

- Overall sales were down 50.6%

- Single-Family Home sales down 49.3%.

- Strata sales were down 57.2%.

Inventory Levels April 2020

Inventory numbers continue to rise -:

Total listings in the Central Okanagan are now 2704 up from 2,676 last month.

Single Family & Bare Land Strata Residential 1026 units up from 984 last month.

Condo - 571 units up from 561 units last month.

Town Homes - 362 units up from 347 units last month.

These numbers are going to be important to watch, as if inventory starts to rise too quickly, in the short term, we are likely to see some downward price pressure.

So what next for the Kelowna Real Estate Market?

It is too early to say what is going to happen to prices. If the number of sales compared to inventory levels start to widen further, we will likely see downward price pressure, certainly in the short term.

My sense is that this is likely to be more in the medium and upper-end of the market as local buyers (who represent about 60% of the market) will still be buying in the more affordable end of the market.

Later in the year, I expect to see more activity, with some pent-up demand, particularly where buyers take advantage of the current low-interest rates.

Things will also be affected by consumer confidence, as the longer, the lockdown goes on the deeper things will be felt in people's pockets and in the economy as a whole.

Our Kelowna Real Estate market will certainly be affected by some people being unable to travel, particularly if they need to fly to get here. Certain types of properties will lend themselves well to be being viewed virtually but some buyers will only feel truly comfortable having viewed a property face-to-face.

One factor, yet to be determined, is whether the UBCO school year will begin virtually. This would seriously affect our local rental market, as many landlords rely on student rental income between September and April, and they are already being affected by the weak demand for summer rentals this year.

I sense that May will be a 'wait and see month', for many people' and I am hopeful that we will have a clearer picture by the end of it.

For me, it will certainly not be business as usual, but I have a number of Sellers who do want to sell, and a number of buyers who still want to buy.

I have already talked to a number of potential Clients about the implications of COVID-19 and self-distancing protocols and everybody seems willing to give this a go, with Buyer Health Questionnaires, protective Gloves & Masks, to keep people as safe as possible.

I've certainly welcomed the opportunity to have Zoom chats with people, and I've been 'experimenting' with live Open House Virtual Tours at some of my listings, which is very exciting and a little nerve-wracking at the same time!

If you need any Real Estate help and advice right now please feel free to reach out to me either by email or phone and I'll be happy to help you!

Kind Regards

Trish Cenci

Tel 250 864 1707

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