Operation Fresh Beginnings. If you were unsuccessful trying to sell your home last year perhaps market conditions will be your friend and the situation will improve this year. Or perhaps not. The reverse could be true and you might be wishing that you could resurrect that low-ball offer that seemed ridiculous last October. Let’s breathe in some facts together and try to make some sense of what’s to come.
There are 1,089 active residential listings for sale right now. This is kind of a big number that doesn’t really offer many clues until we dissect it and look inside. 191 of these homes are priced under $400,000, 461 are priced between $400,000 and $700,000 while 437 are priced over $700,000. Holy Hannah Kelowna is an expensive place to live! All these numbers will rise too.
Still confused? There were 233 residential sales on average each month. Overall this means we’re in a balanced market and we ought not to expect any wild fluctuations in prices. When there are few homes available for sale, sellers get more confident and hold out for more money and buyers eventually respond by holding their noses and paying a little more or settling for a less desirable house. On the other hand, when inventory numbers are sky high and there’s a seemingly endless supply of homes sellers get frustrated with the lack of showings or offers and react by taking their homes off the market or reducing their asking price. Simple. Those rules will never change.
Kelowna Market Predictions Look Good
Go back and re-read paragraph 2. In the < $400,000 price range there were 77 sales per month which translates into 2.5 months of current inventory making this a sellers’ market. Nothing extreme really, don’t expect bidding wars and buyers lined up around the block with cheque books elbowing each other out of the way but things look pretty good for this group. If buyers find something close to acceptable when looking in this price range they really should act, as in today….now, instead of waiting a few days because they will often end up disappointed. The Kelowna Real Estate Predictions in the $400,000-$700,00 range are looking at a pretty good. There are 3.65 months of inventory available making this market pretty good for sellers right now but as inventory increases it will get more competitive. My advice for anyone thinking of putting their home on the market in the Spring once those odd jobs have been completed is to finish those jobs tonight and get a for sale sign on your snowy lawn tomorrow afternoon.
As for the $700,000 and over group it’s same old same old. For buyers it’s like Disneyland out there for you with hundreds of homes for sale, many of those which were for sale last year, and the year before too. For sellers, maybe just maybe, your $1.6 million home is worth $1.4. We all know that it isn’t possible to buy a similar lot and build for $1.8 but this group is often the most stubborn when it comes to price adjustments when you would think they would be the realistic.
All the best to everyone in 2015. I’d like to hear your predictions for the new year and look forward seeing what lies ahead.