Summer is now in full swing in the Okanagan, and locals and Tourists alike are enjoying the things we are most famous for - sunny Lakeshore days, Boating, Hiking, Biking, Golf, Cherries, Peaches, and Wine!
As summer was a little later in arriving this year, I am guessing that we are going to see subdued Real Estate activity throughout the valley during August, except in the more 'affordable' housing market.
When you take a quick 'glance' at our Kelowna Real Estate Inventory, you will see numbers continue to be on the higher side, but when you are actually looking for something specific, there have been several times where it has been tricky to find!
Depending on which price point, type of property and location that you are looking for your buying and selling experience can be very different. One size certainly does not fit all at the moment!
The Median Days on Market for a Kelowna Single-family home, for instance, in the $400,000 to $600,000 range has been 30 days, and with 'due diligence' usually taking 2 weeks of that time, offers are coming in relatively quickly.
Homes in the $800,000 to $1.1m range are having a much tougher time, with the median time to sell being 64 days, and I would suspect the number of days is actually higher than that, as some will have been re-listed with price adjustments before they sold.
Sales of Condos in the University District got a welcome boost, with 7 sales during the month, but for the parents who were looking for condos offering vacant possession for September 1st, this is starting to become more challenging, as a number of Sellers have now committed to rentals for the school year.
Kelowna & Central Okanagan Real Estate Sales July 2019.
- Total Sales were up 12.9% last month.
- Single-Family Homes sales up 4%
- Strata sales up 23.6%.
When we compare the numbers to last years:
Compared to last year -
- Overall sales were up 16.9%
- Single-Family Home sales up 14.9%
- Strata sales were up 17.8%.
32 Properties sold over $1m, with the highest sale being an auction of a beautiful Lakeshore home in Lake Country for $6.38m.
Total levels of Inventory in the Central Okanagan, July 31, 2019 -:
Residential 1302 units up 5.85% from 1230.
Condo - 640 units up 12.08% from 571.
Town Homes - 385 units up 6.65% from 361.
Overall inventory is up 11.25% on this time last year.
So what should we read into this?
My sense is that some of the increase was a knock-on from slower sales in June, and I do expect August to be slower.
I am aware of a number of Buyers who want to buy in our area but are having difficulty selling their current homes either here, Alberta and the Lower Mainland, for example. So this is likely to cause some 'pent-up demand' when the market does start to recover.
Is the Kelowna Real Estate Market through the worst of it?
Our market was hit more suddenly than if we had experienced a 'normal' Real Estate Market downturn, as it came earlier than expected, mainly due to the Mortgage Stress Tests, but also the Foreign Buyers Tax and Speculation Tax.
It feels like the market is split into two parts. The part where 'locals' tend to be able to afford to buy, I expect to stay relatively active and prices will be more stable.
For the 'higher-end' and more luxury end of the market, I sense that prices could still soften as some Sellers just want to move on, but some will take their homes off the market and wait for prices to recover, as they are in no rush.
So for Buyers, my advice is, if you see what you like, don't be afraid to negotiate and make an offer, and for Sellers, particularly in the higher-end homes, your home needs to have good curb appeal, be well-presented, priced competitively and you need to be prepared to negotiate!