A Tale of Two Income Brackets

A Tale of Two Income Brackets

Through the first 10 months this year there have been 1,822 residential in Kelowna with 1,055 homes selling under $500,000 and only 767 selling over $500,000. This isn’t an unusual statistic but what is making most people sit up straight and take notice is that while 42{f0a0a72383b5d412aa1cdd82beeb3baa9f2169d63afba57b72be67b4c5074c09} of homes are selling over $500,000, 53{f0a0a72383b5d412aa1cdd82beeb3baa9f2169d63afba57b72be67b4c5074c09} of the homes for sale are priced above $500,000. At a rate of 105 sales per month under $500,000 there is currently 7 ½ months of inventory in this price bracket which isn’t what we’re accustomed to but it won’t keep us up nights. On the other hand at a monthly sales average of 77 sales over $500,000, there is currently over 17 months of inventory on the market. This means if So, if you’re wondering if you are seeing more For Sale signs while driving through some of the nicer neighbourhoods you are. It’s even more pronounced the higher the price bracket. There was just 1 (not a typo) sale over $1 million in October and 0 so far in November.

There are currently 320 homes for sale in Kelowna in the $250,000 to $400,000 price range (7 month supply) which is considered a buyer’s market. In order to sell a home, price is more critical than ever to encourage showings and written offers.

The average Canadian homeowner has $136,000 in equity and the average mortgage rate is currently 5.41{f0a0a72383b5d412aa1cdd82beeb3baa9f2169d63afba57b72be67b4c5074c09} compared to 5.56{f0a0a72383b5d412aa1cdd82beeb3baa9f2169d63afba57b72be67b4c5074c09} last year. The percentage of Canadians who are 90 days or more past due in their mortgage payments is 0.28{f0a0a72383b5d412aa1cdd82beeb3baa9f2169d63afba57b72be67b4c5074c09}. In Kelowna right now (Tuesday Nov 5th 3pm) there are only 14 homes in foreclosure (contact me if you want the list) including 1 mobile home and 1 condominium.

Living in Kelowna,
Andrew Smith and Jo Ann McLellan
Smith McLellan Group
Royal LePage Kelowna
250-979-8066
Follow me on Twitter @smithap01

Call for more information https://www.Okanaganbc.com or click here mls real estate Kelowna BC

Where are we now?? Kelowna Market

Where are we now?? Kelowna Market

Where are we now?? Kelowna Market  Does anyone else remember the fanfare a year ago when the average price of a home in Canada rose above $300,000 for the first time? The Canada Mortgage and Housing Corp. were heralding the good times and all the lines on all the graphs were pointing up and to the right. Now, a year later, the Canadian Real Estate Association has reported that the average price of a home in Canada has fallen for 5 consecutive month over month price declines and the average sale price of a home in this country is now $281,000. The average sale price for a home in Kelowna this year is $508,400 but the average sale price in October was $464,200.

With inventory of homes and condominiums for sale there are certainly some deals out there. For example we have a two bedroom plus den condo in Playa del Sol (1 year old across from beach) fully furnished asking $305,000. Qualified buyers are having an easier time negotiating terms with lenders when financing homes with unauthorized basements suites with some banks recognizing rental income when they never would before.

There are also some strong signals that the Kelowna market will be getting back to a more balanced one with 385 condominiums and houses coming off the market between October 30th and November 15th. I was showing houses on this past Monday and of the 8 I was planning on showing, 2 had accepted offers on the weekend.

Living in Kelowna,
Andrew Smith
Royal LePage Kelowna
Call for more information https://www.Okanaganbc.comor click here Okanagan real estate listings

250-979-8066
Follow me on Twitter @smithap01