Kelowna and the Central Okanagan Valley are experiencing a balancing real estate market with slowing sales growth compared to an ever increasing supply of residential properties available to purchasers. The overall residential market data from the past month shows we are currently holding 4.56 months of inventory; compared to 2.31 months of inventory in May 2017. A more balanced market allows purchasers more choice and less pressure while still providing a good climate for sellers.
The average valuation of residential properties remained flat month over month and while it has increased 10.83% to $582,738 since this time last year, it has increased just 1.59% since 2017’s high of $573,612 last October. The speed of which the market is moving is encouraging with the average time to sell at 46 days, the same as this time last year and down from a high of 73 days in January.
Central Okanagan Average Price for Residential Properties (All)
Back to inventory - there is definitely a divide between single family homes (all varieties) and strata residences including condominiums and townhouses. The condominiums and townhouse segments remain strong seller’s markets in all neighbourhoods with the exception of Downtown Kelowna. This is the natural effect of significant development in the area. There are currently over 150 condo residences for sale in Downtown Kelowna, representing nearly 7 months of inventory at last months rate of sale. As for Townhouses, there are 28 for currently listed for sale in Downtown Kelowna, with none sold in the last 2 months!
For single family homes, nearly all Central Okanagan neighbourhoods moved into a balanced market or even a buyer’s market. There were however 5 neighbourhoods where there remains a strong local sellers’ market for residential homes:
Pandosy/KLO (Kelowna): 2.75 MOI
Rutland (Kelowna): 3.88 MOI
Smith Creek (West Kelowna): 2.18 MOI
Ponderosa (Peachland): 0.5 MOI
Lower Princeton (Peachland): 3.82 MOI
Where are buyers most likely to have more inventory to choose from and less competition? Lake Country, with the exception of Okanagan Centre. Carr’s Landing, Oyama, and Winfield, are all showing more than 6 months of inventory. Some other neighbourhoods experiencing local buyer’s markets for residential homes include:
Clifton (Kelowna): 26 MOI
McKinley Landing (Kelowna): 10 MOI
Glenmore Highlands - Wilden (Kelowna): 10 MOI
Lakeview Heights (West Kelowna): 9.4 MOI
Mission Hill (West Kelowna): 6.7 MOI
MAY 2018 - Months of Inventory by Neighbourhood
All data is from OMREB/MLS® System. Interpretations of the data is done with the utmost care and attention, however, errors and omissions may apply. Selling and purchasing real estate comes with risk and should be discussed in depth with your real estate agent of choice.