The real estate market in Kelowna and the Central Okanagan Valley continued the trend towards a more balanced market last month with June marking the 5th consecutive month of growing supply. However inventory only increased 8.43% from last month compared to May’s jump of 15.28%. Affordability is clearly becoming an issue with June also marking the 4th consecutive month of decreased sales versus the same month last year. June saw total of 484 residential sales and ended with a current inventory of 2494 or 5.15 months of inventory compared to 3.21 months of inventory in June 2017.
The average valuation of residential properties rose by 3.68% over last month to a record high of $604,168. This increase was lead by condominiums which saw average valuation rise by 5.30% over last month to a record high of $359,860. However, it is important to note that both townhouses and single family residential homes stayed almost flat with drops in valuation of just 1.83% and 0.76% respectively. Like last month, the speed at which the market is moving is encouraging with the average time to sell at remaining at 45 days (46 in May).
Central Okanagan Average Price for Residential Properties (All)
As I noted last month, there is a divide in how the market is performing between condos and single family homes. I also mentioned that condominiums in Downtown Kelowna were experiencing the beginning of a buyer’s market with nearly 7 months of inventory. This figure has come down to 5.85 months of inventory but is still a sign of increased supply and lessening demand. What’s becoming even more noticeable is another divide, that between different neighbourhoods for single family homes (all varieties). Numerous neighbourhoods are now beginning to see a buyer’s market, while numerous others are still experiencing very strong seller’s markets. Once again this speaks to affordability in our market and the implications of the changes to mortgage lending qualification requirements and increasing interest rates that came into effect earlier this year. The lists below shows the strongest seller’s market neighbourhoods and buyer’s market neighbourhoods in Kelowna and West Kelowna:
Seller’s Market Neighbourhoods (Single Family Home)
Smith Creek: 2.18 MOI
Glenmore: 3.07 MOI
Westbank: 3.11 MOI
Rutland: 3.8 MOI
Ellison: 3.83 MOI
Buyer’s Market Neighbourhoods (Single Family Home)
Kettle Valley: 10.22 MOI
McKinley Landing: 9.67 MOI
Southeast Kelowna: 9.33 MOI
Lakeview Heights: 9.14 MOI
Glenmore Highlands/Wilden: 8.5 MOI
JUNE 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.