Some have been asking for condo statistics for last month so here is my breakdown, explanations and predictions. Bad news first.
There are currently 423 townhouses and 1,013 apartments for sale in Kelowna. Let’s start with apartments. If you own an apartment priced over $400,000, the chances are good that it didn’t sell last month. There are 160 of these units for sale right now and there were only 9 (not a typo) sales in May. This means there is an 18 month of supply of apartments on the market in this price range with more listings appearing frequently. This segment of the market that needs a price correction more than any other but optimistic sellers are reluctant to adjust asking prices. The good news is that the over supply of high end apartments on the market will work itself eventually and this cohort of seller is the most able to sustain an extended buyer’s market. There aren’t that many “have-to-sell-now-because-i-need-groceries” sellers in this group.
The OK news.
There are 850 apartments priced under $400,000 with 67 sales in May. Still a buyer’s market but nothing unmanageable or newsworthy. An 11 month supply of these units often requires a price reduction or two before an offer but sharply priced units are selling.
Townhouses. The picture is a little more balanced here with an 11 month supply for Townhouses priced over or under $400,000. There are 305 THs available under $400,000 with 29 sales last month and 118 priced over $400,000 with 11 sales in May.
Good news part…The average sale price of a Kelowna apartment rose last month from $223,000 to $273,000 compared to April. Yes, I double checked and numbers are right. People are welcome to let me know why this happened because other than the “higher priced units are selling” theory, I’m surprised. I’ll monitor to find out if this is a trend or a blip.
Townhouses were up from $344,000 to $350,000. Same explanation as previous paragraph but much less drama. Interesting times here in Kelowna Condos.
Until next month.