September seemed to be a busier month for listing, and Fall definitely seemed to be in the air as we had some cooler than usual days.
As I look at the sales coming through, there is still plenty of evidence of multiple offers, but interestingly seeing a few more 'expired' listings than earlier in the year.
Kelowna & Central Okanagan Real Estate Sales September 2021.
September 2021 Kelowna Residential Real Estate sales numbers seemed to have held steady.
Compared to the last month-:
- Total Sales were up 1.3% last month.
- Single-Family Homes sales up 5.9%.
- Strata sales down 1.6%
Compared to last year -:
- Overall sales were down 27.9%
- Single-Family Home sales down 30.4%.
- Strata sales were down 18.4%.
In some sectors of the market, it is still a challenge due to lack of quality inventory and I have again been experiencing multiple offers.
There does, however, seem to be some evidence of a slowdown, with fewer Sellers looking at offers on a certain day, and buyers taking a little longer to think about things before writing an offer.
That being said, we are seeing a large number of sales, particularly in the Condo sector that will not be in the MLS® sales numbers , as Movala goes on the Market, Caban by Gyro Beach, Water Street by the Park and Zara at Lakestone.
Inventory Levels September 2021
For the 3rd month in a row, inventory has been very stable for the Central Okanagan.
Total listings in the Central Okanagan are now 1,361 down from 1,370 last month and down from 2,559 last year.
Single Family & Bare Land Strata Residential 514 units down from 533 last month and down from 891 last year.
Condo - 248 down from 240 units last month and down from 645 last year.
Town Homes - 145 down from 144 last month and down from 331 last year.
Overall, the inventory trend is down 47% compared to last year, Single Family Homes listings are down 42% from this time last year, Condo listings are down 62% & Townhome listings are down 56%.
I did check in with Brendon Ogmundson, Chief Economist with the BC Real Estate Association today, to see whether the Mortgage Stress Test changes had been having an effect on sales and he advised -:
"The posted rate prior to the June update was 4.79%, so the increase to 5.25% only impacted purchasing power by about 5%."
"For comparison, the impact of B20 back in 2018 was closer to a 25% negative impact to purchasing power. For that reason, I don’t expect there to be a dramatic impact from the higher qualifying rate going forward, though I do expect that 5-year fixed mortgage rates are going to creep higher over the next few months and that could have some impact on demand (though again, fairly minor). Something to keep an eye on!"
Key points to note this month in the Kelowna Real Estate Market.
1. Inventory remains low but stabilising- so there is a greater chance that prices may start to stabilise. While some are calling for a full market correction, I do not believe that will be the case here in the Central Okanagan, as inventory is not starting to rise yet, although some homes are taking longer to sell, and we are seeing some downward price adjustments.
2. New Developments - We are starting to see Condo prices breach the $1,000 per square foot range in Kelowna.
3. Effects of Covid 19 - there remains increased demand for extra space, as people continue to work from home.
4. Recent Election - The Liberal Party haven't started to implement changes to their new housing policy yet, but here are some of the items they mentioned, which could have a dampening effect on the market.
- Temporarily ban foreign ownership in Canadian housing for next two years, unless a purchase is confirmed to be for future employment or immigration in the next two years.
- Implement a national tax on non-resident, non-Canadian owners of vacant, underused housing and foreign-owned vacant land in large urban areas.
- Introduce a “homebuyers’ bill of rights” that will include banning “blind bidding,” which prevents bidders from knowing the bids of other prospective buyers, and ultimately drives up home prices.
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 -