Will the sale price of a Kelowna home next year be $460,000 or $520,000??
The Kelowna residential real estate market has been known to change quickly but over time, like most places, it increases and proves to be a sensible investment. Let’s look closely at the average sale price of homes sold in May in Kelowna...
Year No. of Solds Average Sale Price
2001 245 $198,000
2003 263 $244,000
2006 287 $429,000
2008 224 $563,000
2009 216 $505,000
2010 217 $523,000
2011 197 $487,000
So, $460,000 or $520,000 next year? Don’t feel badly if you’re not sure…neither am I.
I talk to buyers and sellers every day and there’s a significant disconnect right now with most buyers believing that homes are overpriced and will likely decrease, while most sellers think prices have already bottomed out. Who’s right? The media can spin a $487,000 averages sale price two ways by focussing on the fact that it’s down farily significantly from the height of the boom, then the next day a different reporter might say that house values have more than doubled (146% increase) in the past ten years. Do you celebrate the decade or beat yourself up for not selling in early 2008?
When Jo-Ann and I started selling real estate here in 1996, pricing a home was simple. A typical bi-level in Rutland would sell in the $140,000-$150,000 range depending on if there were 2 or 3 bedrooms upstairs and Glenmore $160,000-$170,000. It was a simpler time and we could use comparable sales from the previous 3 or 4 years because values hadn’t changed and we were often able to assess a home by the time we walked from the driveway to the front door. These days it takes hours to determine a home’s value and market conditions change quickly. A quoted estimate in June or July probably won’t be the same in October or November.
Right now, there is an 11 month supply of homes on the market which is reasonably healthy. Buyers still have plenty of options while sharply priced homes are selling.