It felt like a slow start to August, in the Kelowna Real Estate Market, but gradually Buyers started to pick up the phone again and re-focus their efforts.
The quotes in our graphic represent just some of the things we experienced in the August 2017 Kelowna Real Estate Market.
Interestingly, we had one Buyer, visiting last week, and of the 12 homes we wanted to see, 11 were still available, and some were showing price reductions. This has been unheard of all year!
Concerns that the Market is reaching the top, have definitely made Buyers more ‘price cautious’ last month, but before they get too caught up in the notion that the market is softening, remember we are still dealing with lower inventory and the ‘Summer lull’ that we often experience in Kelowna Real Estate during August. We are certainly not ready to call a ‘downturn’ in the market.
It is still a Seller’s market and there is no doubt that some Sellers are ‘reaching’ with their asking prices, but clean, well-presented homes, in a number of categories, are still ‘flying off the shelves’, regularly via Multiple Offers.
On the other side of the coin, some Sellers are resigned to making alternative arrangements to live, rather than finding a new home before they sell.
Kelowna Real Estate Sales August 2017
Residential sales were 12.6% down on last month, with Single Family Home sales down 18.4% and Strata Sales down 4%. It is the first time in a long time that I can recall there being nearly as many Strata sales as Single Family Homes.
Numbers are well down on this time last year, with total sales down 21.3%, Single Family Home sales down 25.2% and Strata Sales down 8.8%.
We have had fewer successful Buyers this August, but I do put some of that down to lack of inventory, smoke from Forest Fires, and usually August is a slower month for sales.
Putting it into perspective, in 2007, which was considered a busy year, total sales were 594, Single Family Home sales were 322 and Strata Sales were 208.
Kelowna Real Estate Current Listing Numbers
Current listing numbers are definitely rising compared to last month and last year.
Total number inventory has risen 4.3% since last year, Single Family Homes risen by 10.9% and Strata numbers have risen by 5.5%.
This is definitely an area of the Market to watch as if these numbers keep rising prices are likely to soften.
Times are changing in Kelowna!
As I’m sure you’ve read, there has been plenty of Media articles talking down the Real Estate Market across Canada, here we have been reading some very exciting articles about Kelowna and the Okanagan Valley -:
1. The Market Spotlight in the latest Colliers Canada CAP Rate Report Q2 2017, while a lot of it relates to Commercial Real Estate, the sentiment also applies to Residential Real Estate! Here is the opening paragraph -:
“Never has there been a better time to consider investing in Kelowna. As the largest city in BC’s interior and drawing on a trading area of approximately 550,000 residents within a two- hour drive; Kelowna currently boasts an annual population growth rate of over 3.1%, making it one of the fastest growing metropolitan areas in Canada. With its technology, manufacturing, health care, and tourism boom and an expanding post-secondary education sector, in particular, attracting new business and residents to the area is becoming easier and easier. With a strong competitive Vancouver market, Kelowna and the greater Okanagan area offer a market many more investors are seeing as more and more relevant.”
2. Okanagan picked for Techstars Global Accelerator Programme Pilot –https://techvibes.com/2017/08/29/okanagan-picked-for-techstars-pilot-to-grow-tech-ecosytem.
3. Kelowna City Council has just approved 2 new Residential Condo Towers downtown, to be built by the North American Development Group https://www.castanet.net/edition/news-story-205434-1-.htm#205434
These are exciting and changing times for Kelowna!
Spotlight on Single Family Home Median Prices over the last 10 years.
This month, I decided to spotlight Single Family Homes in the Kelowna area, and how median prices have changed over the last 10 years.
Year on year, prices have been gently rising, and it’s only over the last couple of years, that we have been seeing sharper rises.
The exodus from the Lower Mainland has certainly had an effect on our Real Estate Market, where Clients have ‘cashed out’, as their money goes so much further Buying a Property in the Okanagan, which also offers a great climate and better job prospects than in the past.
When we read that there are 98 different countries represented in the new intake of Students at UBCO this year, it’s clear that the word about our beautiful valley is spreading fast!
As always, if you have any questions about Buying or Selling Real Estate, in Kelowna and the Central Okanagan Area, please do not hesitate to contact us, and enjoy the Labor Day long weekend!
Trish and Tanis
Tel 250 863 8989