September Market Update for Kelowna Housing
There are 1,258 residential homes for sale in Kelowna in addition to 645 apartment condos. We’ve recorded 2,138 residential home sales so far this year at an average sale price of $705,000. We’re in a balanced market with 4.7 months of supply available based on 267 sales per month. Last year at this time the average sale price for the year was $630,000 and we recorded 2,748 sales.
Comparing 2017 to 2016
August 2017 saw our MLS system record 261 sales at $719,000 compared to August 2016 when we recorded 349 sales at an average price of $681,000. To sum up, year-to-date, prices are up 12% and unit sales are down 22% over last year.
Is this good or bad? Will the trend of fewer sales with higher prices continue? What can we expect during the Fall/Winter markets? Yes, it’s certainly good if you’re already here watching your equity grow without doing much other than mowing your lawn and replacing your furnace filter. Not so good for first time buyers or those moving here with normal jobs/income looking at jaw dropping mortgage payments. Notwithstanding slowly rising mortgage rates, the trend of higher prices is all but a certainty but the number of homes sold is a bit of a puzzle and open for debate. Mortgage rates are the scary monsters hiding under the bed and they can put the brakes on even the most robust housing markets.
Weather Plays a Part
A terrible year for floods and fires have certainly had an impact on our housing and insurance markets but the in-town move-up buyer seems to be taking a long, hard sober look at the housing landscape and isn’t biting like he used to. They’re letting the kids share a bedroom for another year or two instead of taking on $200,000 more debt. The unprecedented construction we see throughout the city will ease some of the pressure on prices with the creation of more units for sale but I don’t think it will be enough to slow down prices.