With the third quarter wrapping up there were 495 residential sales for the three month period. The average sale price for the quarter was $1,180,000. On its own these number look ok but when compared to Q3 2021 we registered 818 individual sales. This represents a 39% drop in the number of homes sold. Prices were relatively static with the average selling price was $1,085,000. The takeaway from this is that the number of homes selling has dropped off a cliff but prices have remained high and Kelowna hasn’t experienced the price drop that most other Canadian cities are experiencing.
Year to date numbers are similar. So far this year we’ve sold 2,003 homes over the first nine months compared to 3,049 last year at this point. That’s a 34% decrease in unit sales. I think if you put this in an historical perspective, Q3 2021 was unusually active with 818 sales and this past quarter was undoubtedly slower than most. It’s alarming to see a month of September being less active than August but here we are.
Moving forward I’m expecting more of the same. Investors and spec builders are absent from the marketplace for the time being and the winter months are typically a higher percentage of buyers coming from interior. People still need to buy and sell so wi’ll likely see another 170-180 sales next month.
For the week ending September 25,2022
Last week’s real estate numbers were absolutely bonkers and once we look back on the year that was over the Christmas holidays this week will stand out as the biggest outlier.
Average residential sale price for the week ending September 25th was $1,547,000. The number of homes sold was luke warm at 49 which is sort-of-ok but if you’re a long time reader you’ll know we like to see the weekly number around 70 or so. Still, it’s not bad.
The explanation for the $1.5MM average was that there were six homes selling above $3 million. Make no mistake, the market value for homes in Kelowna is still decreasing but high end buyers are playing an active role and are skewing our statistics.
The risk involved in reading about weekly numbers is that these numbers jump around a little too much but there’s no mistaking that last week’s 49 transactions was the most active week in our marketplace since May. We’ll take good news anywhere we can get it these days.
There were 26 apartment sales last week at an average sale price of $473,000. Both of these numbers are in line with what we’ve been seeing throughout the summer. I don’t have any hard data on this but condo buyers are likelier to be owner-occupiers as opposed to investors. Buyers who need to move because of normal life events are still buying and selling but speculators are sitting on the sidelines.
For the week ending September 18 2022
Housing Update for the Central Okanagan
It was a largely uneventful week as kids get are settling back into school and everyone’s patterns change. The heat wave is officially over and everything seems to be getting back to normal.
The only item that stands out is a sale in the Upper Mission that was asking $9,288,000 sold. It was almost 8,000 square feet on the lake. This skews this week’s numbers upward.
The average sale price for residential last week was $1,226,000 based on 45 sales. 28 of these were under $1 m million and 3 over $2 million.
Apartments had a reasonable week with 28 sales at an average price of $474,000.
So far this year there have been 1,937 residential sales and another 1,289 apartment sales. These numbers are great but they could be worse. This represents a 34% decrease in unit sales for houses and a 30% drop in condo sales. I know this is more my problem than it is yours but this is the reason you’re seeing for sale signs staying up longer this year compared to last year.
Enjoy your fall season and if you would like to meet for a coffee with Andy or Kierra,