Kelowna Housing 2020 Jump In or Sit This One Out?

Kelowna Housing 2020 Jump In or Sit This One Out?

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For sale $520,000
#112 3735 Casorso Road,, kelowna, British Columbia

#112 3735 Casorso Road,

Kelowna, British Columbia

3 Bedroom 2 Bathroom 1508 sqft
Vantage West Realty Inc.
For sale $539,900
#37 950 Lanfranco Road,, kelowna, British Columbia

#37 950 Lanfranco Road,

Kelowna, British Columbia

2 Bedroom 2 Bathroom 1413 sqft
Coldwell Banker Horizon Realty
Coldwell Banker Jane Hoffman Realty
For sale $529,900
#359 610 Academy Way,, kelowna, British Columbia

#359 610 Academy Way,

Kelowna, British Columbia

3 Bedroom 3 Bathroom 1406 sqft
Coldwell Banker Horizon Realty
For sale $599,800
780 Falkirk Road,, kelowna, British Columbia

780 Falkirk Road,

Kelowna, British Columbia

4 Bedroom 2 Bathroom 1700 sqft
Royal LePage Kelowna
For sale $529,900
#365 610 Academy Way,, kelowna, British Columbia

#365 610 Academy Way,

Kelowna, British Columbia

3 Bedroom 3 Bathroom 1406 sqft
Coldwell Banker Horizon Realty
Interested?
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Is it finally time to invest in Kelowna real estate?

Is it finally time to invest in Kelowna real estate? Is the market running away from me or will it drop this spring when more houses come onto the market? Should I have bought last year? What’s with all those new condo projects downtown? Where is the next south pandosy neighbourhood going to be?

77 results | Page 1 of 4
12 24 48
Search/Filter Properties


LOADING

For sale $520,000
#112 3735 Casorso Road,, kelowna, British Columbia

#112 3735 Casorso Road,

Kelowna, British Columbia

3 Bedroom 2 Bathroom 1508 sqft
Vantage West Realty Inc.
For sale $539,900
#37 950 Lanfranco Road,, kelowna, British Columbia

#37 950 Lanfranco Road,

Kelowna, British Columbia

2 Bedroom 2 Bathroom 1413 sqft
Coldwell Banker Horizon Realty
Coldwell Banker Jane Hoffman Realty
For sale $529,900
#359 610 Academy Way,, kelowna, British Columbia

#359 610 Academy Way,

Kelowna, British Columbia

3 Bedroom 3 Bathroom 1406 sqft
Coldwell Banker Horizon Realty
For sale $599,800
780 Falkirk Road,, kelowna, British Columbia

780 Falkirk Road,

Kelowna, British Columbia

4 Bedroom 2 Bathroom 1700 sqft
Royal LePage Kelowna
For sale $529,900
#365 610 Academy Way,, kelowna, British Columbia

#365 610 Academy Way,

Kelowna, British Columbia

3 Bedroom 3 Bathroom 1406 sqft
Coldwell Banker Horizon Realty
Interested?
Your Favourites

 

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Kelowna Housing January 1, 2020

When the dust finally settled there were 2,337 residential sales for the year ending December 31st at an average sale price of $739,000. Those who predicted we would see a strong push towards $800,000 were wrong and those who thought we would see some sanity and a reduction back down into the high $600s were also wrong. In other words, buyers and sellers decided they preferred a stable housing market without much movement in dollar values. A stable market makes my job easier being able to use six month comparable sales data when pricing a home. Same for appraisers, lenders and anyone else who has a stake in this industry.

Fewer homes sold in 2019 VS 2018

We sold fewer homes in 2019 compared to 2018. In the end it was close but we fell short by 26 homes. That’s only a 1% drop but we were playing catch up from the spring and almost equalled 2018’s numbers. We can begin 2020 on a positive note knowing we generated 86 more unit sales during the fourth quarter of 2019 compared to Q4 2018. That’s a 19% increase in the number of homes sold quarter to quarter and there doesn’t seem to be anything fundamentally wrong in the economy that might slow that momentum down. Sure, the number of Albertans buying here is down and same goes for equity rich lower mainlanders but despite everything we still managed to sell about 200 homes per month. I think we’ll manage to reach 2,600 sales in 2020.

Average Condo Price for 2019 was $363,000

I’ll start the Kelowna condo/apartment summary by disclosing that the data is unreliable and should be taken with a shrug. Kelowna MLS numbers show that prices are up 4.3% on the year based on an average sale price of $363,000 in 2019. The number would be much higher if we had access to new construction sales figures and pre construction sales. All you have to do is trust your own eyes by driving around and noticing all the new buildings being built. If you were to walk in to any of the sales centres and asked what you could secure for $360,000 you would walk away disappointed. In other words, the actual average sale price for condos in Kelowna is likely in the low $400s and won’t be dropping anytime soon.

Condos Sold 2019 VS 2018

The same logic applies to unit sales. We sold 1,176 condo apartments in Kelowna last year compared to 1,307 in 2018. Not all of the 10% drop can be attributed to missing new construction data but a sizeable chunk can. Other factors include consumer resistance to the empty house tax and changing tenancy laws. Just because it’s New Year’s Day I’ll end the condo story on a positive note by pointing out that the fourth quarter was the strongest for condos. We produced 273 resale condo sales during Q4 2019 compared to just 223 for Q4 2018. It’s easy to be optimistic about things in this sector.

As usual, thanks so much for following along all year and following along on Twitter, Instagram and Facebook.

If you have questions about the market please call me.

Andrew Smith

250-979-8066

19 First Quarter

Kelowna market

Is Kelowna In A Housing Bubble?

Amen and thank goodness the first quarter is over and done with. We recorded 373 residential sales Q1 2019 at an average sale price of $701,000.  This is down from the same quarter last year when we sold 520 homes at an average price of $746,000.  That’s a 28% drop in unit sales and a 6% drop in prices.

 

Average Housing Sale Price Over $740,000

Amen and thank goodness the first quarter is over and done with. We recorded 373 residential sales Q1 2019 at an average sale price of $701,000.  This is down from the same quarter last year when we sold 520 homes at an average price of $746,000.  That’s a 28% drop in unit sales and a 6% drop in prices.

77 results | Page 1 of 4
12 24 48
Search/Filter Properties


LOADING

For sale $520,000
#112 3735 Casorso Road,, kelowna, British Columbia

#112 3735 Casorso Road,

Kelowna, British Columbia

3 Bedroom 2 Bathroom 1508 sqft
Vantage West Realty Inc.
For sale $539,900
#37 950 Lanfranco Road,, kelowna, British Columbia

#37 950 Lanfranco Road,

Kelowna, British Columbia

2 Bedroom 2 Bathroom 1413 sqft
Coldwell Banker Horizon Realty
Coldwell Banker Jane Hoffman Realty
For sale $529,900
#359 610 Academy Way,, kelowna, British Columbia

#359 610 Academy Way,

Kelowna, British Columbia

3 Bedroom 3 Bathroom 1406 sqft
Coldwell Banker Horizon Realty
For sale $599,800
780 Falkirk Road,, kelowna, British Columbia

780 Falkirk Road,

Kelowna, British Columbia

4 Bedroom 2 Bathroom 1700 sqft
Royal LePage Kelowna
For sale $529,900
#365 610 Academy Way,, kelowna, British Columbia

#365 610 Academy Way,

Kelowna, British Columbia

3 Bedroom 3 Bathroom 1406 sqft
Coldwell Banker Horizon Realty
Interested?
Your Favourites

 

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What should Kelowna buyers be thinking?

April was a much more back-to-normal month and we appear to have cauterized the bleeding.  In April 2019 we recorded 221 residential sales at an average sale price of $728,000. We’ve all slowly gotten used to tougher lending requirements, stress tests, empty home taxes, foreign buyers taxes and new agency rules. Things have settled down a lot.

 

This is up considerably from the 152 sales recorded the previous month.  Optimists will see an upward trend in unit sales from a miserable first quarter and pessimists will point out how we’re still down from a year ago. Prices are still high and likely a little artificial with so many high end homes selling and fewer affordable homes selling. It’s easy to blame the banks but fact is there just aren’t very many homes for sale under $500,000 which translates into fewer transactions. We’re building momentum though.

 

Breaking it down even further.

Of the 221 residential sales, 25 sold over $1 million and 60 sold over $800,000. At the other end of the pricing spectrum, there were only 17 sales under $500,000 of single family detached, freehold for the entire month. This isn’t sustainable over the long term as we need more affordably priced homes to sell in order to maintain a vibrant housing market.

 

There are 1,079 homes for sale in all price ranges and the foreclosure market is all but non existent.   Looking ahead,  well priced homes will continue to sell.  We aren’t seeing the volatility seen in the Lower Mainland and I imagine we won’t go below 200 sales until the fall and prices will likely stay above $700,000 forever.Kelowna market

 now the time to invest?

Whatever happens in the near to medium term is irrelevant if you plan on owning a property for the next decade. Once you’re in the housing market you’ll stop caring so much about short term market fluctuations and will focus on important things like spending an income tax refund on renovating your bathroom painting the exterior. Real estate investment in Canada has always been a get rich slow scheme and it’s mostly fool proof. Perhaps the housing market will dip next year (it won’t) but even if it does it’s nearly impossible to pick the perfect time to jump in.

Yes, more homes will be listed for sale during the spring time in Kelowna. This has always been the case and probably will be. Anyone selling right now is likely in a “have-to” sell situation with hard deadlines creating situations where sellers are realistic about pricing. Anyone who lists a home for sale during the colder months has a good reason and are often easier to negotiate with.

 

Should you have bought last year.

 

Probably. Don’t beat yourself up though. Delayng and putting things off is a human trait and you’re no different. Interest rates are ridiculously low right now and prudent consumers are buying when they’re able as opposed to saving more for a higher down payment.

 

Where is the next up and coming neighbourhood.

 

Have you been up to North Glenmore recently? Yoga, Thai food, Six dollar coffee shops, mountain bike trails all over the place, pubs and large grocery stores. Remember when it was just Corbin’s store? The condo building boom is as noticeable up there as anywhere right now and this community is what Upper Mission is hoping to become someday without the traffic.

On the fence about buying?

To sum up, if you’re on the fence about buying a home in Kelowna right now is the ideal time to make an appointment to see what’s right for you.

Should a prudent, price conscious home buyer be looking at investing in Kelowna’s housing market these days or should he be sitting this one out and renting until things cool off and prices come back down to earth?

Thanks for reading.

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

View more information https://www.okanaganbc.com/ or  here Okanagan real estate listings