Kelowna Real Estate Market News

Quail Ridge & UBCO Real Estate Market Report June 2019

Welcome to my 1/2 year report on the Quail Ridge & UBCO Kelowna Real Estate Market.

Single Family Homes



12

  Months

6

Months

3

Months   

Sales        20 20 8
Av Sold P.M    1.7 1.7 2.7
Current Listings   20 20 20
Months Supply   12 12 7.4
% Chance Selling   20.8% 16.9% 19%


Current Listing Price Range for Sale   $649,900 - $1,699,000

Average Days on Market  2018 - 43 Days 2019 -114 Days


The Mortgage Stress Tests continues to have a bearing on Home Sales in the Quail Ridge area. Some Buyers worked around this by buying Homes with suites.


With Quail Ridge being close to UBCO and a winter transit service available, the extra income from rentals provided some welcome income support to Quail home buyers.


Current listings & recent sales show most of the homes have no suites, which is likely to have been a factor in homes taking 2 1/2 times longer to sell.


At my Quail Ridge Open Houses, people have certainly been looking at ways to suite basements and demand for homes under $750,000 has been markedly higher than for the more expensive properties.


Market Status - Balanced to Buyers Market.

Town Homes



12

  Months

6

Months

3

Months   

Sales   7 6 4
Av Sold   .6 1 1.3
Listings   10 10 10
Months Supply   16 10 7.7
% Chance Selling   20% 27% 25%


Current List Price Larger Townhomes $669,900 - $719,900

Current List Price Bella Sera $399,900 - $429,900


The demand for Town Homes has been lower than average. Quail Ridge is seen as a popular place for 'empty-nesters', but with some Buyers have had difficulty selling their homes locally, in Alberta and the Lower Mainland, this has stalled their purchasing here.


Bella Sera Town Home sales have also been lower. Sale prices 'peaked' at $447,500 in December 2017, since then the Market has been adjusting downwards, and we are now seeing Buyers starting to purchase again with sales in the $385,000 to $410,000 range.


Market Status - Balanced to Buyers Market.

Condos Quail Ridge




12

  Months


6

Months


3

Months   

Sales   28 12 7
Av Sold   2.3 2 2.3
Listings   15 15 15
Months Supply   6.5 7.5 6.5
% Chance Selling   39% 32% 26%


There have been a number of factors in play here.


- Reduced buying power due to the Mortgage Stress Tests.

- The adjusting market.

- One of the local complexes being in the process of building repairs.


All have contributed to slower Quail Ridge Condo Sales this year.


On average we have seen a 10% price adjustment. For example, Pinnacle Pointe 2 bedroom and den units, convertible into 3 Bedrooms, have recently been selling in the $370,000 to $380,000 range, and they have proved popular with Buyers.


We have also seen 1 bedroom units selling in the $240,000 to $255,000 range, which has been good news for Parent Buyers with UBCO students.


Market Status - Balanced to Buyers Market.

Condos Academy Way



 

12

  Months


6

Months


3

Months   

Sales   23 12 8
Av Sold   1.9 2 2.6
Listings   42 42 42
Months Supply   22 21 16
% Chance Selling   21% 16.% 13%



A higher than average inventory & general market sentiment has led to downward price pressure in Academy Way, for the first time, since Condo building started in the area.


For example, a 3 Bedroom Condo was selling for $529,900 in March 2018, and the latest sale of the largest floorplan sold for $480,000 in May 2019.


This has led a number of Sellers to sign rentals for the 2019 /2020 school year, and finding 3 Bedroom units, offering vacant possession, is now proving more challenging.


I expect to see an increase in sales numbers during July, as I am aware of several units currently 'under offer'.


Market Status - Buyers Market.

Quail Ridge / University Real Estate - my ongoing thoughts 2019

At the beginning of the year, I identified several factors that were likely to affect the Quail Ridge & UBCO Real Estate Market.


Let's re-visit those items and add a few more!


1Mortgage Stress Test and Interest Rates have affected Condo & Single Family Homes Buyers.


2. Speculation Tax - may have affected some Home and Town Home Sales, as this has been a popular area for 2nd Home Buyers. No firm evidence though.


3Foreign Buyers Tax and difficulty getting money out of China likely to have affected some Buyers of Condos, particularly in Academy Way.


4. Softer Rental Rates hasn't seemed to effect Quail Ridge and Academy Way Condos. Most Owners are not reporting any difficulty renting properties and demand has remained good.


5. Inventory - Academy Way Condo Inventory has been higher but general Inventory has been about average.


6. Prices - have been 'softer', after a sharp fall between Autumn and Spring. With Single Family Homes, I expect prices to stabilize up to the $750,000 range and higher priced homes will continue to take longer to sell & pricing will remain soft. With Townhomes & Condos, Sellers will need to put their 'best foot forward' with pricing & some Sellers will take their properties off the market and wait for improved Market conditions. 


7. Buyers having difficulty Selling their existing homes - it has been well documented that Real Estate Markets in Vancouver, the Lower Mainland, and Alberta are struggling at present. This is definitely having a knock-on effect in Quail Ridge & Kelowna in general.


8. Investor Sentiment - Investor Purchasers have been watching prices falling and are waiting to see where it 'bottoms out'. This has certainly affected the Academy Way Condo Market.


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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