Kelowna Real Estate, inching towards a balanced market

Kelowna Real Estate, inching towards a balanced market

First things first…Kelowna’s real estate market is still in what we all refer to as a Buyers Market. Almost 2,000 homes on the market and a typical month sees us record about 200 residential sales. We would need about 330 sales a month board wide before anyone could declare this a balanced market but we’re inching closer. Last month’s stats were impressive with 282 sales reported. Compare this to May 2012 when we saw 223 sales (and we were optimistic then too) or even April 2013 when there were 239 sales. 282 sales in May represents a significant leap forward towards sellers getting their swagger back. Even the most ardent doom and gloomer lurking somewhere in a dark corner of the internet would have to agree things are getting better out there. Open houses are well attended and purchasers are being forced to make decisions quickly these days because waiting a day or two might mean someone else scoops up that house.

Reasons to be optimistic if you’re a seller include low interest rates, a strong Alberta housing market and a trend toward more sales and less inventory. Reasons to be pessimistic are that there is a huge glut of high priced homes still for sale. The average asking price for all 1994 homes for sale right now is an eye-popping $811,000 and the average sale price last month was $474,000. Clearly homes in more affordable areas are selling quicker than less affordable areas but the gap between $811,000 and $474,000 has to narrow.

Prices remain unchanged month to month. The average sale price for April 2013 was an identical $474,000. One year ago the average price (May 2012) was $529,000.

Thanks for reading!check back here soon.

I value your comments and suggestions. Please leave remarks.

Realtor Andrew Smith
Living in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here Kelowna property for sale

Kelowna Condo and Townhouse Market Up or Down?

Kelowna Condo and Townhouse Market Up or Down?

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.

Realtor Andrew Smith
Living in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here Kelowna property

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