Housing Update For The Week Ending April 23 2023
There were 54 residential sales last week bringing the total for the year up to 552 transactions. The average sale price so far this year is $1,115,000.
At this point in the year last year there were 987 sales at an average sale price of $1,277,000. Let that sink in for a second for two. When you read articles about the “new normal” in real estate this is what they’re referring to. I don’t think there’s much need to focus on the $1.1M vs. $1.2M change in pricing because we’ll surpass that number in no time but I’m not sure if we’ll see 300 transactions a month anytime soon.
552 transactions isn’t all that bad though and in many ways it cause for relief. This number means we’ve repaired confidence again to the point where buyers are out there again submitting offers, visiting open houses and booking moving trucks. The 54 transactions last week represents another week of increased sales activity albeit a slight increase. There’s no doubt we’re moving in the right direction.
Condo market is somewhat blah. 346 units sold so far this year compared to 590 y/y. We’re digging out here also and are grateful for the simple fact that this segment of the market is rebounding so fast. The condo market almost appears bulletproof with a never ending demand for well priced product.
Coffee With Andy for the week ending April 15 2023
There were an impressive 49 residential homes sold last week bringing the total up to 498 for the year. The average sale price was a bit of an outlier at $1,250,000 because of five homes selling over $2 million and only three under $700,000.
So far this year the average sale price is $1,160,000. Higher prices are likely because of the nice weather we’ve been having which brings more out of town money into Kelowna and makes a mockery of my predictions, but we certainly welcome the newcomers.
Things were also robust on the condo side of the ledger with 34 apartments selling at an average price of $476,000. This is the same as the overall average this year with 315 condo sales. This segment of the market has become predictable and stable and I’m not expecting any wild swings in pricing through the spring.