Kelowna Real Estate Market News

Quail Ridge & UBCO Real Estate Market Report Q3 2019

We are now 3/4 of the way through the year, so it's time for my Q3 2019 report on the Quail Ridge & UBCO Kelowna Real Estate Market.

Single Family Homes




12

  Months


6

Months


3

Months   

Sales*        18 13 6
Av Sold P.M    1.5 2.2 2
Current Listings   17 17 17
Months Supply   11 6 8.5
% Chance Selling   8.8% 12.9% 11.8%


* Figures for Single Family Homes and Bare Land Strata Properties.


Current Price Range for Sale   $599,900 - $1,699,000

Average Days on Market  2018 - 36 Days 2019 - 88 Days


We have just started to see homes being listed under the $600,000 mark again, and homes which are listed below the assessed value, a sign that prices have continued to soften.


Sales in the last 90 days have been between $640,000 & $1,009,000, with evidence of Sellers having to adjust their list pricing to the current market conditions and being prepared to negotiate.


At the time of writing, I am aware of 3 homes that are currently under offer and overall I feel Quail Ridge should be seen as 'good value' right now.


Market Status - Buyers Market.

Town Homes



12

  Months

6

Months

3

Months   

Sales   10 8 3
Av Sold   .83 1.3 2
Listings   6 6 6
Months Supply   7 5 2
% Chance Selling   12% 22% 33%


Current List Price - Larger Townhomes $589,000 - $710,000

Current List Price Bella Sera $389,000 - $399,900


The demand for Town Homes in Quail Ridge has continued to be slow, as some potential Buyers are having difficulty selling their homes, although there are some early reports of improved sales in the Lower Mainland.


This has resulted in several Townhome Sellers taking their properties off the market and there are currently 3 units listed ($550,000 to $750,000 range), one of which is in University Heights.


We have seen a few more Bella Sera Town Home sales during the summer, with the recent sale peak being $405,000 for an upper unit during September 2019. There are currently 2 full units for sale and 1 quarter share unit.


While just looking at the numbers, you would expect things to continue to improve, we do tend to see a slow-down in this area, towards the end of Fall and through the Winter.


Market Status - Balanced to Buyers Market.

Condos Quail Ridge 



12

  Months

6

Months

3

Months   

Sales   18 10 4
Av Sold   1.5 1.7 1.3
Listings 9 9 9
Months Supply   6 5.3 6.9
% Chance Selling   16% 19% 14%


This year has been a poor year for Condo Sales in Quail Ridge.


One of the biggest challenges has been for the Pointe at Quail Ridge complex. The building is currently undergoing repairs, and as a result, recent selling prices have been at a discount, compared to expected market value, and concerns over the repairs kept some buyers away.


It is anticipated that repair work will be finished by the Spring, so I do anticipate things to improve next year.


In 2017, for example, there were 33 Condo sales between May and September, and this year there were only 9.


There are currently 8, 2 bedroom units for sale between $319,900 & 399,900 and no 2 bedroom and den units for sale.


Market Status - Buyers Market.

Condos Academy Way



 

12

  Months


6

Months


3

Months   

Sales   25 21 13
Av Sold   2 3.5 4
Listings   18 18 18
Months Supply   9 5 4.5
% Chance Selling   11% 19.4% 22%



Academy Way had a much higher inventory than normal, this summer, with 42 units listed at the peak. This put downward price pressure on the market, and where we would have seen 3 Bedroom 3 Bathroom Condos selling in the low to mid $500,000's the cheapest to sell (in the last 90 days) was for $459,000 & the highest was $499,900.


We did have a flurry of activity in July and August, and Owners took possession of U Six and U Seven in August. One or two did choose to sell.


As we are beyond the main selling season now, unsuccessful Sellers rented their units for the school year, hoping that the market will pick up in the Spring. 


The cheapest 2 Bedroom unit at present is $369,900 and the cheapest 3 Bedroom 3 Bathroom is $459,900, in the  U Two building which is still undergoing repairs after a major flood last winter.


Market Status - Buyers Market.

The Remainder of 2019 - Quail Ridge & UBCO

Typically the Quail Ridge and University Area tends to 'hibernate' in late Fall and throughout Winter.


I cannot see that being any different this year.


Let's revisit the previous factors affecting the Market-:


1Mortgage Stress Test and Interest Rates - some Buyers are managing to qualify now that prices have softened a little. Legal Suites or the ability to create a Suite are still a real help.


2. Speculation Tax - some affect but not as much as expected.


3Foreign Buyers Tax and difficulty getting money out of China - ongoing issue, particularly in Academy Way.


4. Softer Rental Rates - no major effect in Quail Ridge and Academy Way Condos. 


5. Inventory - not unduly high, but properties are taking longer to sell.


6. Prices - have are likely to remain under pressure over the late Fall and Winter.


7. Buyers having difficulty Selling their existing homes - an ongoing issue and definitely having an effect.


8. Buyer / Investor Sentiment - not in any rush, as they are waiting to see if they can buy at the 'bottom' of the current cycle.


As always, if you have any specific questions about your home or are looking to buy in the Kelowna area or are looking for a Quail Ridge / UBCO Specialist, please feel free to call or email me and I will be happy to help!


Kind Regards


Trish Cenci


Tel 250 864 1707


Email trishcenci@gmail.com


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