Welcome to my Quail Ridge / University District Real Estate Half Year Market Report for 2018.
This report is designed to give current Owners, Buyers, Sellers, and Investors an insight into how the Quail Ridge & University District Real Estate Market has performed, here in Kelowna, during the first 6 months of 2018, and my forecast for the remainder of the year.
Quail Ridge / University District
Real Estate Sales January 1, 2018 to June 30, 2018.
|Single Family Homes||
Overall sales numbers have fallen by 39% compared to this time last year. Interestingly there is a 143% increase in sales of Single Family Homes, but the usual 'Spring Market' for Condos has not materialised with a 46% fall in sales. Both the Quail Ridge and Academy Way area were affected.
The biggest drop off has been in sales of Town Homes. This largely involves Town Homes in the Vint Rd area of University Village, Fiore Del Sol and Bella Sera in Quail Ridge.
In Vint Road, there is currently only 1 unit for sale, and so far we have had 1 Bella Sera Unit sell this year, with 1 'Quarter Share' active and 4 full listings in the furnished Bella Sera Townhomes & 1 townhome recently listed in Fiore Del Sol.
Single Family Homes
As you can see from the graphic above, we have seen an increase in Single-Family home inventory, but they are generally selling fairly quickly with an average number of days on the market, so far this year, at 38 days on the market, compared to 34 days as the average for all of 2017.
In 2018, no houses have been listed under $600,000, 12 have sold in the $600,000 to $900,000 range, and 55 over $900,000, with 2 selling over $1m.
While homes listed over $1m used to be rare in Quail Ridge, of the 23 homes currently listed 7 are over $1m.
Median Home Prices
2016 - $624,750 up 11.2%
2017 - $694,600 up 11.1%
2018 - $750,000 up 8% (Year to Date)
After a reasonable start to the year, Condo sales in both Quail Ridge and the Academy Way area have been disappointing.
There was good 'take up' on the new builds' in U Six and U Seven sales, but these did not show on the MLS® system as they were sold by the Developer.
Interestingly the Mission Group appears to have changed its position on allowing resales of Assignments of Contract on the MLS® system, as I have started to see a few listed recently.
Inventory and Days on the Market
As you can see from the Graph, inventory is considerably higher than last year but Median Days to Sell are not too much longer to sell than last year, at this stage.
2016 - 32 days.
2017 - 23 days.
2018 - 28 days (year to date)
Median Sale Prices Quail Ridge
2016 - 303,000 Up 14.2%
2017 - $330,250 Up 9%
2018 - $374,740 Up 13.5% (Year to Date)
Median Sale Prices Academy Way
2016 - $349,900
2017 - $399,950 up 14.3%
2018 - $498,125 Up 24.5% (Year to Date)
Although inventory has started to rise, this has not affected prices, which have risen 13.5% so far this year in the Quail Ridge area and 24.5% in the Academy Way area, (which will have been impacted slightly by some higher prices in the U5 complex).
As I have mentioned already Townhome sales have been very low so far this year. Part of that has been less inventory for sale, in Vint Road for example, and the other part has been that Parents would potentially have bought Bella Sera, in the past, for their Students attending UBCO, and then use it in the summer for themselves. This year, they have not had the 'appetite' to invest in a Property that they are likely to pay in the mid-$400,000's for.
Also, there have not been any listings in the Fiore Del Sol complex on Country Club Drive / Capistrano Drive, so far this year, until one came on the market recently.
As there has only been one Bella Sera Townhome sold, so far this year, I have not calculated a Median Average as the figures would not be meaningful.
Forecast for Quail Ridge and UBCO for the remainder of 2018.
Fears of how Speculation Tax may affect Buyers and the new Qualifying Rules for Mortgages are definitely affecting Buyers to the University area of Kelowna, as they are in many other areas of the City.
When I am undertaking Open houses in Quail Ridge, I am seeing more Buyers looking to purchase homes with a suite that Parents can live in, as 'Buying Power' is not going as far as it was.
We are also not seeing as many investors this year, and the Condos in the over $400,000 range are taking proving more challenging to sell, despite still being 'good value' compared to some other areas of the City.
I feel this pattern is likely to continue into the fall.
Once we know whether the Speculation Tax is going to become a 'reality", the Government will then have to make clearer exactly who is going to be affected and what exemptions are going to be available, which will make it easier for Buyers to plan appropriately.
If the Speculation Tax does not go ahead, we could well see some 'pent-up' demand showing itself, as some Buyers waited, and I would anticipate seeing more sales in the Fall.
The one thing that is clear from these numbers is that Quail Ridge and University prices are not falling and at the very least I would expect them to 'hold' in the foreseeable future.
If you have any specific questions about the area or your own particular needs, please do not hesitate to telephone or email me.
Tel 250 864 1707