Kelowna Real Estate Market News

Kelowna Real Estate Market Report December 2021

Posted on December 1, 2021 by Trish Cenci

While the number of sales may be continuing to reduce, do not be fooled into thinking the market is cooling off!

I have been continuing to work with a variety of Buyers, and it is not a market for the faint-hearted or those that aren't super-motivated to find a home!

I don't believe we have ever seen our inventory at such critically low levels, and we are continuing to see many multiple offer situations, and listings selling well over the asking price.

Kelowna & Central Okanagan Real Estate Sales November 2021.

November 2021 Kelowna Residential Real Estate sales numbers were slightly below the October 2021 numbers.

Compared to the last month-:

- Total Sales were down 4.7% last month.

- Single-Family Homes sales were down 1.7%.

- Strata sales down 6.5%

Compared to last year -:

- Overall sales were down 15.7%

- Single-Family Home sales were down 13.6%.

- Strata sales were down 15.1%.

Inventory Levels November 2021

Historically low Inventory in the Central Okanagan remains the primary reason for upward price pressure in our Real Estate Market.

Total listings in the Central Okanagan are now 1,103 down from 1,298 last month and down from 1,791 last year.

Single Family & Bare Land Strata Residential 383 units down from 496 last month and down from 556 last year.

Condo - 220 down from 239 units last month and down from 462 last year.

Town Homes - 107 down from 137 last month and down from 242 last year.

Overall, the inventory trend is down 38.4% compared to last year, Single Family Homes listings are down 31.1% from this time last year, Condo listings are down 52.3% & Townhome listings are down 55.8%.

Key points to note this month in the Kelowna Real Estate Market.

1. Inventory remains at historical lows - The rate inventory levels have continued to fall, & remain a heavy influencer on prices.

2. Government suggested changes to Real Estate - the Government is looking at changes that they hope will increase protection to Buyers and Sellers, & they hope will cool the Market. These suggestions include a cooling-off period for Buyers and Sellers and an end to blind bidding in multiple offer situations. These recommendations are in the exploratory stage, and the jury is certainly out as to whether these measures will be effective as there is evidence where this is been tried in other countries where it is actually fuelled real estate markets.

3. Interest Rates remain low but future rises in the Forecast - the threat of rising interest rates is starting to gain momentum. While this was not forecast to be in the immediate future, consistently higher inflation numbers may cause the Bank of Canada to re-think its strategy.

4. Kelowna is now the 4th most expensive Rental Market - according to a recent report on Zumper.com Kelowna has now become the 4th most expensive rental market. This is likely to continue to spur investment Buyers. An example of this is a 2 bedroom Condo in the Academy Way area close to UBCO last year would have sold in the $365,000 to $420,000 range. They are now listing in the $449,000 to $530,000 range!

5. Covid Pandemic - Workers are continuing to be encouraged to work from home, so there is continuing demand from Buyers wanting to take advantage of this and move to the Okanagan.

So, to summarise, lack of inventory, with the current levels of buyer demand, is highly likely to keep prices rising for now. and Buyers need to make sure they are ready to jump by having their financing in place, and their Property Inspector & Lawyer on standby!

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

Trish Cenci