The May 2020 Kelowna Real Estate Market was surprisingly more active than I had expected it to be. We still saw people who needed to buy and sell, and as BC came out of its first phase of lockdown I certainly saw more requests for showings.
Two of my new listings saw offers within 1- 4 days of listing!
This last weekend was much busier with Buyers viewing.
Kelowna Real Estate Sales May 2020.
Real Estate sales were up 38.1% compared to April but still 25% below the numbers we saw in March, and nearly 44% down on this time last year. Again, this is to be expected, and we really don't need to read too much into these numbers.
Really, June 2020 numbers will be more of a benchmark on how things are starting to recover.
Kelowna Real Estate Inventory Levels May 2020
Inventory numbers continue to rise, which is normal for this time of year as, but remain down on the numbers this time last year.
This is one of the indicators I continue to watch, and at the moment I am not seeing these numbers causing downward price pressure.
Total listings in the Central Okanagan are now 2919 up from 2704 last month, but down from 3396 May 2019.
Single Family & Bare Land Strata Residential 1123 units up from 1025 last month down from 1367 May 2019.
Condo - 615 units up from 571 units last month down from 674 May 2019.
Town Homes - 396 units up from 363 units last month, down from 446 May 2019.
What next for the Kelowna Real Estate Market?
The question on everybody's mind is still - 'What is going to be the impact on pricing?'
I attended an online meeting, last week, which included a cross-section of prominent representatives of BC Real Estate and Trade, who were discussing this very topic.
The BC economy is currently in a recession and the reality is the shorter this recession is the sooner demand will return. Consumer confidence is going to be important, and the signs are that the record low mortgage rates and pent-up demand will cause things to recover reasonably quickly providing we don't have a 'second wave' of virus cases.
Brendan Ogmundson, Chief Economist for the BC Real Estate Association, feels that we should experience a strong rebound in the third quarter and Real Estate Brokerages have been showing a significant increase in Website property views during the last 2 weeks.
The reality is it could take a year for things to fully recover, but typically after a recession, things do tend to rebound strongly. Consumers are going to need to sort out their cashflow's and the likelihood is that they are going to buy 'the needs' but the question remains is will they buy 'the wants'. I interpret this to mean those who need to move will move, but those buying more luxury properties may or may not decide to wait.
As usual, there has been a lot of media speculation, and interestingly a report by CMHC recently, predicted significant falls in prices, but the reality is supply was already low, in our area. When this crisis started not all sellers were comfortable listing, so supply did not increase enough to cause a significant increase in inventory. Indeed many buyers are still struggling to find their home of choice.
The feeling is that rental markets are likely to be more affected, and in the past Real Estate Markets have been more susceptible to falling prices when mortgage interest rates start to increase, and this is not predicted to be for some time to come.
One area of the market that I am finding some 'indecision' currently is in the student housing market around UBCO. It looks like the school year will start with a mix of online and face-to-face lectures, and so I am sensing a delay in buying by some parents unsure of what to do.
There is also some uncertainty on how this will affect foreign students who make up part of the student population each year, and we are not seeing the usual number of sales yet in that area of the condo market, but things were a lot busier in that sector over this last weekend.
For now, I am not seeing any real signs of downward pricing pressure, so my advice to buyers is don't wait as the market may not adjust the way you had hoped!
If you have any specific questions about your own buying and selling needs please feel free to reach out to me and I will be happy to help.