Kelowna Market Bounces UP
With the 3rd quarter in the books here in Kelowna our real estate numbers have bounced up, down and all over the place all year. The market has been unpredictable and there likely has never been a year where so many experts got everything wrong. Everyone knows the reason so many have been so far off with their predictions but nevertheless it’s been unpredictable year so. And there are still two full calendar months left before we start making our 2021 predictions.
Q3 Record Sales
A quick recap. Q3 2020 saw us record 1,152 residential sales at an average sale price of $891,000. This is up significantly from Q2 when we recorded 550 sales at $753,000. Many of us in the industry sat around for a couple of months doing things other than selling houses only to hit the ground running at 200 km/hour starting sometime in June.
The overall number of homes sold is interesting but easily explainable. The second and third quarters here in Kelowna are usually similar in numbers but this year everything tilted towards July-September because the public were more confident about looking at houses and sellers took deep breaths before deciding that selling during a pandemic was safe. So far so good.
Prices Have Increased
What’s difficult to explain is the increase in prices. An 18% increase in the average sale prices this year is a little bit of a head scratcher but diving deep into the numbers we begin to see why. First of all, if you bought a $675,000 home last year it isn’t worth $800,000 today. What’s going on out there is that a significantly higher percentage of high end homes are selling which bumps up the overall average. Year to date there have been 2,452 residential sales with 68 homes selling over $2 million and 453 homes selling over $1 million. With 18% of our homes selling over a million dollars this is a considerable jump from the 10% at this time last year.
Will this continue? No, it can’t. It just can’t. Because, well, gravity. 18% is unsustainable over a long term. Sure, Kelowna has become even more attractive with workers who are able to work 4 or 5 days at home and commute two or three times a month to Vancouver, Calgary or Toronto but with average selling prices getting close to the $900,000 range things are likelier to settle down to some sort of normalcy where prices are determined and measured by our local economy, Alberta energy prices and Vancouver real estate increases.
Thanks for reading and please share this with family or friends thinking of buying or selling
For more information https://www.okanaganbc.com/