I am sure the Kelowna Real Estate Market news headlines will no doubt focus on falling sales numbers this month, but behind these numbers, we are still struggling to find ‘affordable’ product for our Buyers in the $250,000 to $400,000 range.
There’s no denying there are more choices if you are buying homes in the higher price range, but we still have several Buyers who are ‘stalking’ the MLS® system, just waiting for the right property to become available.
Investors are still looking around the University and Quail Ridge areas, however, there is very little available at this time of year.
Total sales are 14.6% down this month, and 22.2% on this time last year. Single Family Home Sales are down 14.6% from last month and down 28% on last year and Strata sales are down 20.9% from last month and down 16.4% on last year.
Here is a summary of the numbers by Month.
Spotlight on Single Family Homes in Rutland
To check on my affordability theory, I plotted the Median sales price of Single Family Homes in the Rutland area of Kelowna, as this has typically been one of the more affordable areas of town.
This graph shows, for example, that since September 2016, Median Home prices in the Rutland area have gone up from $433,000 to $530,000, a rise of 22.4% and risen from $395,000 in September 2015, a rise of 34%.
If this trend continues, there will be more and more people who will be turning to Condos and Town Homes, as their means to get on the housing ladder.
Downtown Kelowna – set to change?
Despite the sales numbers, as I drive around downtown these days, I am definitely starting to feel a ‘buzz’ of excitement. One Water Street launched this week and is getting ready to break ground and Ella on the corner of Lawrence and Ellis St has just launched and is about 75% sold in the first week.
The new Innovation Centre is having a positive impact on employment, and economic numbers are looking favourable for Kelowna right now.
Kelowna is definitely starting to attract younger people into town, which is one of the reasons the Rental Market is so tight and that the more affordable housing is in high demand.
Judging by the number of projects that are about to be built, it looks like the downtown Kelowna skyline is set to change forever!
To Sum up.
So my takeaways for this month are yes, sales numbers are falling, but continuing lack of inventory is playing its part in the pullback we are seeing in the Market.
If prices continue to rise, we will see more Buyers forced to switch from buying a Single Family Home to buying a Condo or Town Home, due to affordability issues.
Others will be forced out of the market completely unless sources such as the ‘Bank of Mum and Dad’ are open to them!
Until Inventory starts to rise, prices will keep rising, and it remains largely a Sellers Market for now.
Trish and Tanis
Tel 250 863 8989