Kelowna Housing in July
During the month of July there were an impressive 524 new residential listings brought to market bringing the total number of homes for sale up to 1,206. Well done sellers! On the condo side, there were 356 new apartment listings bringing the total up to 685. This still isn’t enough to meet the demand but we’re headed in the right direction. Without enough homes for sale it’s puts upward pressure on prices making buying a home difficult to impossible for first time buyers who are the engine of any housing market.
Unit Sales Down; Prices Up
The trend continues for residential housing sales in Kelowna. Unit sales down; prices up. There were 316 residential sales for July 2017 compared to 368 recorded July 2016. Although there were 50 fewer sales, prices rose from an average of $665,000 July 2016 to $729,000 July 2017. This has been an ongoing pattern all year and I expect the prices-high-sales-low trend to continue throughout the rest of the year. A slight increase in mortgage rates has had very little to zero impact on market activity. The difference between 2016 and 2017 has been the extreme weather where we seemed to pivot from flooding to forest fires almost overnight. There’s no way to measure the impact on housing numbers but it’s certainly been a factor.
Condominium sales remain strong in the Okanagan. In July there were 169 apartment sales at an average price of $327,000. July of 2016 recorded 161 sales at an average sale price of $290,000. The number of unit sales in real life is likely much higher if we could include brand new project sales for the year. Same story for prices. The condo market is as healthy as it’s ever been and this point is hammered home just by driving around town and looking up. Many new construction projects being built and more to come.