Condo Update We have been focusing on single family residential a little too much lately so I thought I would shift gears and shine my tiny flashlight on what’s been going on in the Kelowna condominium market.
Quick disclaimer. I eliminated units for sale at Big White ski resort. When looking at Kelowna area condo stats during the Winter things look better than they really are when sales from the hill are included. During other months it drags the numbers down too much so I unchecked that box. If you want Big White info send me a quick note and I’ll let you know what’s going on up there. Also, Leasehold condos eliminated also. No real reason..just because.
There are 449 condo apartments for sale in the Kelowna area and there have been 726 apartment sales so far in 2014. There is a 5 ½ month supply of units on the market so this segment of our housing is mercifully in a balanced market again. That took a long time. The number that doesn’t seem to alarm anyone but me is the number of vacant units on the market. 114 vacant apartments for sale which represents about 1 in 4. This is likely because of strata corporations not allowing rentals which makes units tougher to sell and often puts a seller in a tough spot if he needs to rent for a some reason. Provincial legislation ending rental restrictions in strata apartments would go a long way in finding a solution to affordable housing in this city/province but don’t see that happening anytime soon. Or ever.
Last year there were 532 apartment sales at this time of the year so the number of unit sales is up considerably year over year. Sale prices are up slightly from last year $246,000 to $252,000 so nothing to celebrate here really regardless if you’re a buyer or seller. Let’s call it a cost of living increase with no winners or losers. The number to jump up and down about is the increase in unit sales from 532 to 726 year over year. We all knew this would happen eventually we just never thought it would take this long. On a cautionary note, we will likely slip back in to a buyers market for apartments over the Winter when sales activity always slows down but Spring promises to be crazy. The old adage of condos being the first to see a drop in prices during bad times and last to rise during good times seems to be ringing true here so it’s likely a smart time to consider investing in a condo again.
The townhouse market doing even better than the apartment market. The average sale price of a townhouse last year at this time was a respectable $319,000 (267 sales). So far this year it’s $343,000 based on 344 sales which works out to a 7.5% increase in prices over last year. That’s a 28% increase in the number of townhomes sold and we’re in a balanced market.The townhouse market is balanced also.The good news for this part of our housing market is that we’ve surpassed 2007 levels which many consider the housing boom. Average prices for townhouses were $323,000 back then so if you bought back then and hung on, you’ve finally caught back up.
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