It felt like things were holding steady in the Kelowna Real Estate Market during August.
We were very busy trying to find last minute properties for Parents to buy for Students ,who found out late in the day that they had no place in Halls of Residence at UBCO, this year.
The City seemed to be hopping with Visitors, during the summer, and it was really nice to take advantage of some of the great things the Valley has to offer, as we attended the ‘Phantom of the Vines’ outdoor concert at the Vibrant Vine Winery.
We did have one or two Forest Fires towards the end of the month, but thanks to the great work by our Fire Departments and some kind weather, things didn’t escalate.
Central Okanagan Real Estate Sales August 2016
|Date||Total||Single Family Homes||Strata||Lots||Manuf|
Looking at Sales compared to last month, total sales remained steady, and it is interesting that Single Family Home Sales are down 5.7%, Strata sales are up 5.2%, lot sales held steady and Manufactured Homes sales are up 41.3%.
Comparing to this time last year total sales are up 27.3%, Single Family Home sales are up 17.1% and Strata sales are up 29.2%.
If we review the Table above, we will see that Inventory levels remain much lower than last year, and we continue to see 10% to 15% increase in Median values of Homes, Condos and Town Homes.
With Inventory remaining at these lower levels, we do continue to expect prices to keep rising for now.
Is the new Property Tax in Vancouver affecting the Kelowna Real Estate Market?
This is a question we are being asked regularly at the moment. The answer is that it is too soon to say.
We have been reading, in the media, how sales are down in Vancouver and it looks like ‘the sky is falling’. The reality is that it is bound to have an affect, and it will have a ‘knock-on’ effect around the Province, and it may also affect Consumer Confidence generally.
If we look at where the Buyers typically come from, in the Kelowna area – 60% Local Buyers and Vancouver and Lower Mainland Buyers accounted for 18%, last month. August is traditionally a slower month in the Okanagan valley, as people focus on enjoying their summer holidays, so we usually expect numbers to be slightly down.
Latest Data is showing that homes are not selling so quickly, in parts of the Lower Mainland, which will cause some people to reduce their prices, as recent Overseas demand falls, and it has meant that some people have had to delay their plans to move into our area.
There is, of course, the potential for investors to be looking further afield in Canada and we may find more people looking in this area.
At the end of the day, local people will keep buying, and with rental rates being very low, there is still room for investors to be Buying, particularly as Interest Rates are good.
One point of note, we did hear from some Investors last month, is that they were having greater challenges getting competative Financing Rates, as some Banks were charging extra fees and charging a Premium on the Interest Rates, as they are trying to discourage more lending to this sector this year. So check Rates with your Mortgage Broker or Financial Institution before you decide to buy!
Well that’s it for this month. As always, if you have any questions or would like us to complete a Market Analysis, if you are thinking of selling your home, please don’t hesitate to contact us!
Trish and Tanis
Tel 250 863 8989