The real estate market in Kelowna and the Central Okanagan Valley saw the first drop in valuation since last winter, erasing all gains it made last month. In the last issue of The Pulse, I predicted volatile pricing and this may very well be the beginning of an uncertain period. The single family residential homes segment of the market has seen a shift from a seller’s market last year to a balanced market this spring and now to the beginning of a buyers market. The first buyer’s market Kelowna has seen in years! With this being said, the condominium and townhouse segments of the market remain in a balanced state for now.
Of the 34 Central Okanagan neighbourhoods, Dilworth Mountain is the last to be holding on a seller’s market for single family residential homes with only 2.67 months of inventory. Neighbourhoods experiencing a balanced market are Clifton, Glenmore, Glenmore Highlands (Wilden), Rutland, Gellately, Glenrosa, and Winfield. The other 25 neighbourhoods have all begun to experience buyer’s markets with between 6.07 - 26 months of inventory. Glenmore, Rutland, and Kelowna North/University District are experiencing seller’s markets for condos with 1.82, 3.0, and 3.24 months of inventory, respectively. For townhouses, 6 neighbourhoods are experiencing seller’s markets.
August saw a total of 417 residential sales and ended with a current inventory of 2603 or 6.24 months of inventory. Overall, sales were down 3.7% compared to last month and 23% over this month last year - a figure that’s actually stronger than we saw in the spring months - and inventory only increased 1.28% from last month. Unlike in the spring market where listings were selling at a fairly unchanged pace compared to last year, August slowed exponentially with average days to sell now at 62 days compared to 47 this time last year.
Back to valuation: based on selling prices, the average valuation of residential properties dropped by 11.36% over last month to $568,210. This decrease was lead by single family residential homes which saw average valuation drop by 12.14% over last month. Townhouses also saw a drop in average valuations of 2.63% while condominiums actually saw average valuation increase by 3.32%.
Central Okanagan Average Price for Residential Properties (All)
AUGUST 2018 - Months of Inventory by Neighbourhood
What does this mean for people thinking about selling their Kelowna home?
This fall may very well be a great time to sell and maximize the appreciation in value properties have experience in the past few years. In the short term, the probability of values edging downwards and inventory levels increasing is likely greater than the probability of further appreciation and lower inventory, meaning that it may prove advantageous to sell now rather than in 6 months to a year from now. Keep an eye on the market and remember achieving a sale is may now take months so a lot can happen even from the time you list until the time it’s sold.
What does this mean for people thinking about buying a Kelowna home?
Across the board the scale has tipped in the buyer’s favour. Don’t let anybody rush you. This past month we saw, on average, 15 new listings per day. You have more choice and if you miss or pass on one property, another will come along. In terms of price, do not pay too much! You need to be prepared to walk away if you’re not getting the right deal.
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.