August 2020 Market Report for Kelowna BC

We were all wrong………

Anyone who made an attempt at forecasting BC’s housing market during the early days of the pandemic missed the mark by a long shot. Optimists predicted a return to normal sometime in late 2021 while others thought we were all going to hunker down in our current homes through 2022. Here we are though still in Q3 and we’ve already outpaced 2019s numbers and things don’t appear to be slowing down.

Shortage of homes for sale

As of today, there are 1,137 residential freehold listings for sale in Kelowna in all price ranges. Additionally, there are 641 condo apartments for sale up for sale right now. On the surface these numbers seem reasonable but the fact is there’s a shortage of homes for sale as we enter the fall market.
The month of August was insane with 349 residential sales selling at an average price of $891,000. This represents the 2nd most active August ever in our market and the 8th most active of any month ever.

Average Apartment Sold for $374,000 in August

Apartment numbers were strong also with 141 sales averaging $374,000. My general rule of thumb is that our market needs to record a minimum of 200 residential sales per month to maintain balance and 100 condo sales. Normally August is one of the slower months in our marketplace with buyers taking time off to enjoy the summer and get their kids ready for school. Everything is upside down these days making it nearly impossible to predict the fourth quarter.
Apartment sales are down about 10% year to date with 700 solds recorded this year compared to 774 at this point last year. Residential numbers are up compared to 2019 with 1,667 homes sold this year compared to 1,493 recorded last year.
                                                                                                                                                            Are Pets Allowed?
are pets allowed

Lack Of Kelowna Homes For Sale

Buyers are certainly more confident being able to lock into attractive long term rates which have created a surge in demand. As usual, Kelowna doesn’t have enough supply of affordably priced homes but with a building boom in the condo sector happening now first time buyers will have a place to go.
Thanks for reading and please share this with family or friends thinking of buying or selling

Andrew Smith - RealtorLiving 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

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