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?

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.

 

What should 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.   Thanks for reading.

 

 

Housing Bubble

 

Thanks for reading.  Please follow me on Twitter at @smithap01 or visit my website at www.okanaganbc.com

 

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

Cal for more information https://www.okanaganbc.com/ or view here Okanagan real estate listings

            

 

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