A sign of a healthy economy is that there are only six residential foreclosures in Kelowna right now. There used to be 180 so this is a pretty good sign that things are going well here. The number of affordable homes for sale continues to be an ongoing problem that isn’t going away anytime soon. This might be a permanent problem with no real solution. There are ten bi-level homes for sale in Rutland or Glenrosa built in the 1970s with a median asking price of just over $400,000. Normally there would be about 40-50 1970s bi-levels for sale so inventory is clearly drying up.
Glass half full….There’s still ten for sale and these places all get you into a market that isn’t going anywhere but up.
Glass-half empty… That’s a lot of borrowed mortgage money for any first time purchaser.
345 Kelowna Homes Sor Sale Asking $500,000 to $800,000
Overall there are 1,023 residential freehold homes for sale in all areas of Kelowna. There are 185 homes priced under $500,000, 345 homes between $500,000 and $800,000 and 500 more priced over $800,000. We all wish there were more homes for sale, especially purchasers who used to have a problem of too much choice. There are 92 homes for sale in Rutland, 55 for sale downtown and 27 in Glenrosa. There are 80 homes for sale on the lake, 100 homes in town for sale are vacant and 278 have suites.
As far as sales go things are still rolling along. Last week we generated 87 residential sales. The average sale price last week was $657,000 which was high due to 8 homes selling last week over $1 million. The average sale price year-to-date is $621,000.
Thanks for reading. Drop me an email if you want to see a breakdown on condos or lots in the area.
Will The Volume of Homes Sold Continue During the Second Half of 2016?
The 2nd half numbers for Kelowna’s real estate market, in any year, are pretty easy to predict just by looking at the first half’s numbers. That was easy. Now go back to what you were doing and stop hyperventilating if you’ve just locked yourself into a 25 year mortgage. Here’s why.
No one’s arguing that the first six months in our market has been good. Homes are selling everywhere, in every price point including lakefront mansions and beat up mobiles. Will this continue? History tells us that it should because the second half of a year can always be predicted by what happened during the previous six months. Here is some raw data…
Total number of sales first 6 months Total number of sale second 6 months
2016 2,032 ?,???
2015 1,584 1,458
2014 1,392 1,404
2013 1,220 1,189
2012 1,092 951
2011 1,040 904
Even if we put our calculators away it’s easy to see a trend and conclude….
IF THE FIRST HALF’S NUMBER IS HIGH, THE SECOND HALF NUMBER WILL BE HIGH. IF FIRST HALF NUMBER IS LOW, SEND HALF NUMBER WILL BE LOW.
We’re outperforming 2015 by a wide margin so we could put things on cruise control and hit 3,500 residential sales this year. The old benchmark of trying to hit 200 home sales a month to consider it a reasonable month is long gone and the new normal is 250 homes. If the 2,000 homes benchmark is a statistical anomaly, and it could be, we’ve still averaged over 250 homes sold per month over the past 30 months with no signs of things letting up. Once outsiders discover the beauty of a community like ours there’s no looking back and the battle to find affordable housing will never be won.