Should I list my Kelowna home in 2019?

Should I list my Kelowna home in 2019?

 Is it wise to buy or sell a Kelowna home this year?

Timeless questions most of us have face head on.   It’s important to know that selling a home in Kelowna is relatively easy.  We’re not a one industry resource town with an imminent mill closure and almost every property can sell if priced reasonably.  True, high end lakeshore homes and swanky high-rise condos are more dependent on outside money but let’s not worry about those guys here. They are usually better able to face market slowdowns than the rest of us.

Time to Sell?

Should I sell this year?   Sure, our housing market fluctuates depending on the economy of Alberta, the ability of Chinese investors being able to take hard currency out of the country, the Vancouver housing market, federal and provincial regulations and interest rates.  External factors are the same for everyone but generally a well priced home will sell in a timely fashion anywhere, anytime.  The ’should I sell now’ decision ultimately depends on personal circumstances.  If you have a higher paying job offer out of town, then yes.  If your kids have grown up and moved out, then yes.  These sorts of factors are considerably more important than trying to pinpoint than predicting what will happen with prices over the short term and this is the way it should be.

Time to Buy?

Should I buy a home this year? The average sale price five years ago in Kelowna, 2013, was $491,000 meaning owning a home was a wise choice.  It’s over $700,000 now.  Prices are determined by supply and demand and population numbers are expected to increase meaning in the long term prices have to go up.  Will prices continue rising indefinitely?  They always have.  Will there be bumps along the way?  Yes, prices fluctuate over the short term but if you’re investing in Kelowna over the long term this question is easy to answer.  Taxes, home ownership costs and all the aggravation that comes with owning a home need to be factored into the equation but if you’re planning on living here full time then 2019 is as good a time as any to buy a home.

Thank you for reading and Happy New Year!

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

For more information https://www.okanaganbc.com/ or view here Kelowna Homes and Condos

 

2019 Real Estate Market Predictions

2019 Real Estate Market Predictions

We recorded 107 residential sales in December 2018 and 46 apartment sales.  These numbers are down significantly from December 2017 when we recorded 73 apartment sales and 185 residential sales.  This is similar to the annual numbers where residential sales dropped to 2,367 in 2018 from 3,012 the previous year.  There’s no need to sugarcoat things, last year was grim on the unit sales front.

Prices went up though. The 2018 average residential sale price was 762,000 compared to $716,000 in 2017.  Apartments went up from 332,000 to $347,000 year to year.

There were only 20 residential foreclosures brought to market last year and only 6 on the market today.  There were 224 foreclosures brought to market in 2012, 177 in 2013 and 140 in 2014.  This segment of the marketplace has mercifully all but disappeared for various reasons.

So, if you predicted 2018 was going to be a good year, you get partial marks.  Prices did increase, and most homeowners have equity built up.  The doom and bloomers can take a partial victory lap also with the significant drop in unit sales.  It’s become harder and takes longer to sell a home in Kelowna in terms of most things measurable.  On top of everything, during these times buyers, especially out of town buyers, mistakenly believe sellers will drop from their asking prices more than the customary 2%.

2019 Predictions

I think we will continue to close the gap between the number of strata sales compared to residential.  Last year there were 2,267 residential sales compared to 2,004 strata units sold.  Numbers from new construction aren’t counted here so the real number is closer than what our MLS reports.  The high price of land is forcing most first-time buyers into condominiums and out of town buyers will always want to own a piece of the Okanagan.

Unit sales will increase this year.  They always do.  Last year’s numbers were just too low for a community our size.  Babies are still being born, people are still taking higher jobs in other communities, couples are still marrying and divorcing, and kids are growing up and moving out.  We’re still a blue-chip housing destination and this will never change.

Thank you for reading and Happy New Year.

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

For more information https://www.okanaganbc.com/ or view here Kelowna Homes and Condos

Kelowna Market Update November 2018

Kelowna Market Update November 2018

November 150 Homes Sold

There were 150 residential sales for the month November including 10 homes selling over $1 million and 2 homes selling over $2 million.  The average sale price last month was $674,000 and the average time to sell a home was 66 days.  November numbers are down sharply from November 2017 when we recorded 213 sales at an average price of $700,000.  There are only 1,208 homes for sale right now which is low for a city the size of Kelowna.

Kelowna Condos

There were 71 apartment sales last month at an average sale price of $329,000.    November of 2017 saw our market record 112 condo sales at an average sale price of $334,000.  The trend appears to be continuing with softer Month to month numbers as we approach the end of the year.  The good news is that a healthy number of units, both residential and apartment are selling as smart Sellars are adapting to the new reality of fewer buyers willing to pay full price for homes this time of year. Too early to tell what will happen in the Spring when the supply of homes for sale increases but I imagine 2019 will look a lot like 2018 and not 2016 or 2017.  Stable home prices not jumping all over the place isn’t necessarily a bad thing for a community like ours as we press the pause button and get used to the new reality of fewer buyers from the Lower Mainland and Alberta.

Thanks for reading and please share this with family or friends thinking of buying or selling

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

For more information https://www.okanaganbc.com/ or view here Kelowna Homes and Condos

 

 

 

KELOWNA MARKET 2018 OCTOBER REPORT

KELOWNA MARKET 2018 OCTOBER REPORT

Kelowna Listings Are Stable

There were 478 residential listings brought to market in September bringing the total number of homes for sale in Kelowna up to 1,542. On the apartment side of the ledger, there were 174 condos listed upping the total to 917 units on the market now. All of these number fall into the “normal” category.

There were 94 apartment sales in September at an average sale price of $346,000. Comparing these number to last year, we generated 127 sales September 2017 at an average sale price of $323,000. This has been the trend all year and appears to be continuing. Prices are increasing while unit sales are falling. A likely explanation for weaker unit sales figures is that new construction isn’t calculated into our numbers meaning all the new condominiums you see being built when you drive around Kelowna isn’t included in our data. If I had access to new construction sales data I would guess that unit sales are at least on par with 2017 and prices are higher than what we’re reporting.

There were 203 residential home sales last month at an average sale price of $751,000. Same month last year saw 222 sales at an average sale price of $773,000. September of last year was an unusual month where we recorded 33 homes selling over $1 million including one over $7 million. I’m calling this an anomaly.

Overall things are fairly smooth and steady here in Kelowna. We’re in a balanced market and well priced homes are selling in a reasonable amount of time. Please contact me if you have any specific questions on our market. Thank you for reading

 

Thanks for reading and please share this with family or friends thinking of buying or selling

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

For more information https://www.okanaganbc.com/ or view here Kelowna Homes and Condos

September Kelowna Real Estate Market Update Andrew Smith

September Kelowna Real Estate Market Update Andrew Smith

September Market Update The End Of Summer in Kelowna

Last month here in Kelowna we experienced a continuation of a trend with the number of unit sales below where they ought to be but the average sale price continues to rise. Kelowna continues to be a preferred destination for those able to retire here or have the ability to create a job for themselves on their laptop.

205 Homes Sold In August

There were 205 residential sales last month at an average sale price of $756,000. One of these numbers is high and the other number is low. I’m sure by know you can figure out which one is which. August is typically one of the strongest months of the year where we average just under 300 sales during the month so 205 is one of the weaker Augusts in a while. We have to go back to 2011 when we recorded only 158 sales for the month August. The reasons for the slowdown in market activity are many and have been documented here before. They include tightening of mortgage requirements as well as uncertainty about speculation tax in our upcoming provincial budget. The forest fires throughout the province haven’t helped things either.

Average Price Range

Prices remain high though. $756,000 is a huge number and is up considerably from the $719,000 we recorded last August and considerably higher than the $681,000 from august 2016. Will this continue? Kelowna always seems to defy gravity in terms of housing prices and with so much wealth around western Canada I can’t imagine prices falling below $700,000 ever again here. As always, thank you for reading and contact me if you have any questions, comments or thoughts on our housing markets.

 

Thanks for reading and please share this with family or friends thinking of buying or selling

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

For more information https://www.okanaganbc.com/ or view here Kelowna Homes and Condos

Taxes, Condos and Stats. Kelowna Housing Update

Taxes, Condos and Stats. Kelowna Housing Update

1017 Kelowna homes For Sale

There are 1,017 single family detached residential homes for sale in Kelowna right not as we charge head first into the Springtime market.  We always wish this number was higher and we especially wish there were more affordably priced homes for sale but we’ll have to work with what we’re given.

662 Sales in 2018

There have been 662 sales so far through this year through April 23rd. . The average sale price so far is $758,000.  During the same period in 2017, there were 749 sales selling for an average of $673,000.  In other words, the number of sales is down significantly and prices are remaining high.  Prices jumped last year during the 2nd quarter into the $700s so the beginning of 2018 is a continuation of that trend.

Property Taxes

These numbers are all manageable and taken from a historical sense, they’re pretty good.  It’s wise to be cautious though because our neighbours to the east are in an unfriendly mood and the next six months might be rocky.  Kelowna has done a good job building an economy centering around Calgarians buying second homes with plans of retiring here, Edmontonians investing in pre-sale condominiums and Fort Mac families raising children here while working in Alberta.  Regardless of your political viewpoints, our neighbours won’t invest here anymore if they feel taken advantage of.  As Canadians we’re a pragmatic group and understand that we need roads, bridges and hospitals etc. and this money needs to come from somewhere.  We all grumble at having to pay taxes to keep each level of government operational but at least we’re all in it together. Each of us has to pay the same amount of property transfer taxes when buying in B.C.   We have yet to see the full effect that inter provincial pipeline disputes and empty home taxes will have on Kelowna real estate numbers but if the last three months are any indication, it might not be pretty.   Out of town home buyers are usually more informed about local taxation issues than the locals because they’re making an investment decision as opposed to a shelter decision.  Out of town investors are a sophisticated lot and are able to deal with certainty.  Right now we’re struggling to give them any.

Kelowna Condos

The story is brighter on the condo/apartment side of the ledger.  There have been 409 condo sales 359,000 so far this year compared to 420 this time last year.  With some unprocessed transactions still sitting on Realtors’ desks, we’re probably slightly ahead of last year’s pace.   Prices have jumped from $341,000 last year to  $359,000 so far this year.  The upbeat condo picture is likely to get even stronger as evidenced by all the construction taking place downtown.  As a result of expensive land costs, we’re now a community that has added second time-move up  buyers to the list of investors, first timers and last timers who purchase condominiums.

Thanks for reading and please share this with family or friends thinking of buying or selling

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

For more information https://www.okanaganbc.com/ or view here Kelowna Kelowna Condos and Taxes

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