August 2020 was another hot month for the Kelowna Real Estate Market!
Some Buyers experienced challenges gaining household insurance, due to the forest fires in Penticton, but happily, these have subsided now, and I have not heard of anyone having issues recently.
Demand for homes and townhomes was active throughout the month and after a slow start for Condos, we saw more activity towards the end of the month.
More parents and investors have been looking around the University area and they are looking to complete purchases, as late in the year as possible, ready for students hopefully starting school at UBCO, in January 2021.
Interestingly, I have also had a few more inquiries from Sellers looking to sell now, so I am anticipating seeing a few more listings coming on the market in the next little while, which will be unusual for this time of year.
Kelowna & Central Okanagan Real Estate Sales August 2020.
While sales numbers were not as high as July, they were still very impressive.
Compared to the last month-:
- Total Sales were down 4.7% last month.
- Single-Family Homes sales down 4%.
- Strata sales down 6.5%.
Compared to last year sales numbers again showed a positive improvement.
- Overall sales were up 48%
- Single-Family Home sales up 62%.
- Strata sales were up 26%.
Inventory Levels August 2020
Inventory levels are down in all main sectors -:
Total listings in the Central Okanagan are now 2,822 down from 3,037 last month and down from 3,319 last year.
Single Family & Bare Land Strata Residential 1,032 units down from 1,127 last month and down from 1,409 last year.
Condo - 667 units down from 708 units last month and down from 708 last year.
Town Homes - 364 down from 382 last month and down from 372 last year.
Single-Family Homes - in depth
Single Family Home Sales (including Bare Land Strata) -:
Number of Sales August 2020
$450k - $699k 2020 129 2019 90
$700k - $999k 2020 122 2019 65
$1m plus - 2020 59 2019 25
Price Range Number of Listings Days on Mkt Months of Inventory
$450k - $699 269 (2019 - 449) 32 (2019 - 39) 1.86 ( 2019 4.48)
$700k - $999k 352 (2019 - 457) 41 (2019 - 46) 2.89 (2019 7.03)
$1m plus 492 (2019 - 560) 64 (2019 - 82) 6.27 (2019 17.28)
Last Month Single Family Home sales - sales were again up in all sectors, compared to last year.
Inventory - remains down in all price ranges.
Days on the Market - have fallen in all price ranges.
Months of Inventory - down in all sectors, and is a Sellers Market in the low to medium price range and balanced to Sellers Market in the higher range.
Ongoing Thoughts ....
Are more likely to see a downturn in the market in the next little while? For example,will there be foreclosures, where people experienced financial difficulties during Covid?
My feeling is that the market will certainly not be sustained at this level, as there has definitely been some pent-up demand.
However, an interesting Graph (see below), from the BC Real Estate Association was quite revealing. It showed that the low wage income earners were the worst hit during Covid and the mid and high range wage earners were not hit as hard.
The lower-wage earners have a tendency to rent, which would suggest that the rental sector is going to feel more subdued. The higher end of the market was little affected, and indeed we have been seeing an increased number of people considering a move to the Okanagan, particularly from the Vancouver and Lower Mainland areas, as they get used to working from home, and are looking to get away from the big City life.
Certainly, with interest rates looking set to remain low and lower inventory, I do feel that we are going to continue to see upward price pressure for the next little while.
My photo this month was taken Sunrise Kayaking near Sunset Drive Kelowna during August.
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