February Okanagan Real Estate Market Update…Market Firing on all Cylinders
There are only 833 homes listed for sale in Kelowna right now. Even considering the time of year, this isn’t a lot. The news gets worse if you’re out there house hunting once you consider that there are only 63 residential homes priced under $500,000 in our market area. Altogether we sold 3,012 residential homes last year which works out to 251 sales per month so we’re starting the new year in a seller’s Okanagan real estate market.
Average Sale Price in Kelowna $755,000 for January 2018
If the first month is any indication of what’s to come, things will be more active this year compared to last year. The average sale price for January 2018 was $755,000 compared to $650,000 in January 2017. January tends to be a low volume month and it isn’t wise to make predictions this early into the year but holy cow a $100,000 increase certainly gets your attention.
Apartment condominiums in Kelowna are starting the year off strong as well. There have been 93 sales so far this month with only 287 apartment condos for sale. Again, January is typically a slower month so 93 is a strong number and it’s a little troublesome that there’s such little inventory to show purchasers. Both numbers will rise as the year progresses but we outpaced January 2017 by a significant margin.
Let me know if you think this year might be the year you consider putting your place on the market. I can give you a reasonable estimate of your home’s value without letting a tenant know. As always, thank you for reading.
Thanks for reading and please contact me if you are thinking of buying or selling
Living in Kelowna, Andrew Smith Royal LePage Kelowna
There are only three units for sale in the Verve right now as of this writing which is a little troubling for any first time buyers looking to get a foot into Kelowna’s housing market.
Units for sale are as follows…
#107 539 Yates $272,900 1 bedroom plus den
#209 567 Yates $329,000 2 bedrooms plus den (Offer Pending)
#405 539 Yates $329,900 2 bedrooms plus den
There were 76 total sales last year in all the Verve buildings with the average sale price of a two bedroom unit being $305,000 while a one bedroom unit sold for $231,000. The average price climbed throughout the year and my expectation is that it will continue on the same trajectory this year.
The first quarter of last year was the most active of all quarters as we saw
24 condos sold which just can’t happen this year unless inventory levels increase.
The number of units for sale will increase because, for no simpler reason, they always have in the past. There are just too many Verve Kelowna owners to not have condos changing hands. The fact that there is a wide open window right now is something prudent sellers ought to consider if they are on the fence about selling sometime in the Spring. With no competition, buyers can’t be as choosy and don’t have as much room to negotiate off the asking price.
BC Tenancy Rules
Tenancy rules have changed in British Columbia affecting all landlords and tenants who are currently in fixed term leases. Contact me for more details on this and how it changes the way notice is given to legally end a tenancy.
Thanks for reading and please contact me if you are thinking of buying or selling in The Verve
Living in Kelowna,
Royal LePage Kelowna
There have been 967 homes sold in Kelowna over the past 90 days leaving us with 929 residential homes for sale. True, it’s a reasonable number but breaking down the 929 number things get a little ominous. Ominous in a predictable way I suppose but a little eye opening when you consider that there are only 92 residential single family detached houses for sale in Kelowna under $500,000.
As the weather gets colder and it gets dark earlier things are supposed to slow down. No one really wants to have their homes on the market this time of year if they can help it for obvious reasons…..everyone’s house just looks nicer during the Spring and Summer and it’s easy finding something to do for an hour when there’s a showing scheduled. It’s easier to take your dog for a walk during a showing in Summer as opposed to when it’s dark and cold. There is a clear window of opportunity right now for any seller considering moving next Spring who can move that date forward to January or February. There is such little inventory meaning there’s a lot less competition which almost always makes it easier to negotiate from a position of strength. No, you won’t get $500,000 for your $450,000 home, but you can certainly reject low offers with confidence and wait for your price.
Average Kelowna Home Sale Price For 2016
There have been 3,045 residential homes sold this year so far at an average sale price of $645,000 compared to 2,393 this time last year at an average sale price of $558,000. The $600,000 and over average sale price of a home looks like it’s here to stay.
With the average home sale price at it’s highest ever and the low number of homes available for sale it is an interesting time to put your home, rental or vacation property on the market. Avoid the competition and instead of waiting for everyone to list their homes in the spring call me today and we can discuss the perfect pan for your property.
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There were 437 residential homes listed for sale in September which is a reasonably high number even when compared to the 456 listed for sale December 2015. Our industry loves consistency.
1021 Homes Available For Sale In Kelowna and Area
As of today, there are 1,021 residential homes on the market. There are only 114 single family residential homes (excludes duplexes, bare land etc.) priced under $500,000. There was a time when it seemed we would see 114 for sale signs on a short drive to the grocery store. 114 is a ridiculously low number of affordable single family residential homes for a community like ours that extends from Oyama to Peachland so if you’re a home owner living in a home like this and are thinking of moving sometime next year, you might want to re-think that and give your Realtor a quick call right now because you’ll have little competition.
164 Condos listed for sale
164 condo apartments listed for sale last month which is a healthy way to kick off the Fall market. There are a total of 338 condos for sale so they’re turning over at a healthy rate. In other words, well priced properties are continuing to sell in Kelowna. Average sale price for condos is $300,000 once the ski hill units are taken out of the mix. In other words, condos prices aren’t coming back down to 2015 (or 2014) levels anytime soon even with all the new construction going on all over the place.
The Kelowna market has been active is practically all price ranges and we do not see any signs of it slowing down for well priced homes and condominiums. When a home is priced right it is receiving multiple offers , often above the asking price. If the home is priced too high above market value it will receive showings but not an offer. The sweet price is the one that gets the active buyer in the door.
If you are wondering how much your home is worth please call me at 250-979-8066
The Kelowna market continues to tighten in the lower end with only 290 homes priced for sale under $600,000. And yes, we’re now counting a $600,000 home in the lower end of the housing spectrum. There have been 532 sales under $600,000 over the past 90 days meaning there are about six or seven weeks of supply available. Supply of homes will continue to dwindle as the temperatures drop as will the volume of sales. Regardless, this part of the market needs more for sale signs else prices will continue to rise.
Total of 995 Freehold Homes For Sale In Kelowna Market
Overall, there are 995 single family residential freehold homes for sale in Kelowna (didn’t include Fintry or Beaverdel this time) including 365 priced over $1 million (that’s a lot), 126 over $2 million and 58 over $3 million. There are only eight foreclosures (not a lot). Same story in the ultra-competitive $300,000 to $500,000 price category there are only 158 homes up for sale right now and we’ve generated 288 sales over the past 90 days. The take away from this is that if you see a home that you like priced under $600,000 you really ought to put an offer in on it right away because it might not be available tomorrow.
81 Homes SOLD Sales in the $1 Million – $2 Million Dollar Price Range
Taking a quick peek at the $1,000,000 to $2,000,000 market there have been 81 sales over the past 90 days (27 per month) with 239 for sale. With 9 months of supply available this number might appear to look a little on the grim side but this segment has roared back to life after struggling with periods of over 24 months of supply.
No predictions yet from me about 2017. Kelowna continues to be a blue chip housing destination and supply shortages usually precede price increases but there are too many variables just yet to stick my neck out there.
Kelowna Condo and Homes Sales are on the move! If you’re reading a relatively obscure real estate blog from my corner of the internet it’s safe to assume you follow real estate prices and activity. We’ve all gotten used to reading about 20 offers on houses in Toronto and homes in Vancouver selling well above their asking price from absentee foreign buyers looking to park their money. In Kelowna we’ve seen the impact of plummeting energy prices in that we see fewer buyers from Alberta but they’ve been replaced by lower mainlanders who’ve cashed out and want a new lifestyle. No news there.
Prices have jumped here in Kelowna again this year as we continue to transition from a community where young people with hopes of starting a family, securing a mortgage, riding around in a mini van, volunteering, spending and contributing are finding it impossible to start out here. As we become more of a resort type community and a playground for people who have played all their cards right in other parts of the world the landscape of the city seems to change every time we drive around. Make no mistake, the new yacht club looks great, South Pandosy is way more fun these days with yoga studios, 5 dollars coffee shops and sushi restaurants. Clement, Cawston and Water street are changing or have changed for the better with new stores and shops. Tourists have no trouble finding the things they need like liquor stores, bank machines and restaurants. It’s wonderful that other people enjoy our city and help our economy but what’s the cost? The cost is that a condo now costs an average of over $300,000 today. Good or bad?
Kelowna Average Home Sale Price $636,000
Year to date there have been 2,815 residential homes sold so far this year at an average price of $636,000. This time last year, there were 2,259 homes sold at an average price of $546,000. Switching gears to apartments, there have been 1,178 apartments sold this year at an average sale price of $299,000. This compares to 797 apartment sales this time last year at $263,000. All numbers way up beyond where any reasonable person would have predicted. Again, is this good or bad for our economy? Perhaps I’m biased but I think overall the good outweighs the bad, I think prices are going to continue increasing and they’re going to continue increasing for a long time.
I’m listing a two bedroom condominium in Rutland North next week. It’s on the fourth floor, currently has a tenant paying 1,350 per month on a lease that runs for another six months with an asking price of $249,000. It’s an eight year old building on the top floor. Call me for more details.
Last non real estate blog for a while. Promise….and this time I mean it. Still a few days to go in August and we’ve generated 300 residential real estate sales in all areas of Kelowna with an average selling price of $682,000. August of 2015 was considered a strong month when we sold 290 homes at an average of $555,000. In other words, the strong year continues.
Jo-Ann and I returned from the Rio Olympics last week after ten days in Brazil. Both Jo and I were pretty exhausted after two 40 hour/6 airport flights but we’ve bounced back. We watched Kierra finish 19th in the 100m breaststroke and 7th in the 200 metre and had a great time. There was so much excitement in the pool over the swimming events highlighted by Penny Oleksiak winning gold in the 100m freestyle. All the Canadians fans were sitting together and there wasn’t a dry eye amoung us when they played our national anthem. None of us thought it would be that emotional. Kierra will be heading back to Minnesota for her final year of university in a week and hopes to continue swimming through Tokyo in 2020. Jo-Ann and I don’t get to see our kid swim as much as we used to now that she’s on the national team and competes in other countries but in many ways watching her compete in Rio wasn’t all that much different than seeing her swim in Kamloops or Vernon when she was younger.
I have a cousin who lives 10km from the Olympic pool in Rio and we stayed with her family of five. My uncle was a Canadian diplomat who lived and worked in many countries and one of his daughters ended up living in Brazil (what are the odds of that?) My brother was with us as was Kierra’s grade 2 teacher and her sister from Saskatchewan. Two of Kierra’s club coaches made the trip also so we had a pretty large cheering section. We read all the reports prior to leaving but didn’t see a single mosquito and felt safe the entire time. It was a lot more beautiful than I was expecting with a zillion miles of oceanfront with dedicated bike and running paths that went on forever. It was Winter in Rio but the beaches were still active with endless volleyball games and other activities. Our cousins never even lock their doors when they go out and feel safe in their gated community. People live in smaller, more modest housing and tend to have larger family get-togethers and celebrations outside of the home. Children’s birthday parties are rarely held in the home and they rent a large room from many businesses that cater to these sorts of things. At least from what we experienced, it was a “let’s go outside and do stuff” society. If interested, there are some more pictures on my facebook page. www.facebook.com/andy.paul.smith
Thanks for reading and I promise to bounce back with real estate news and various tidbits about Kelowna’s housing market next time.
Will The Volume of Homes Sold Continue During the Second Half of 2016?
The 2nd half numbers for Kelowna’s real estate market, in any year, are pretty easy to predict just by looking at the first half’s numbers. That was easy. Now go back to what you were doing and stop hyperventilating if you’ve just locked yourself into a 25 year mortgage. Here’s why.
No one’s arguing that the first six months in our market has been good. Homes are selling everywhere, in every price point including lakefront mansions and beat up mobiles. Will this continue? History tells us that it should because the second half of a year can always be predicted by what happened during the previous six months. Here is some raw data…
Total number of sales first 6 months Total number of sale second 6 months
2016 2,032 ?,???
2015 1,584 1,458
2014 1,392 1,404
2013 1,220 1,189
2012 1,092 951
2011 1,040 904
Even if we put our calculators away it’s easy to see a trend and conclude….
IF THE FIRST HALF’S NUMBER IS HIGH, THE SECOND HALF NUMBER WILL BE HIGH. IF FIRST HALF NUMBER IS LOW, SEND HALF NUMBER WILL BE LOW.
We’re outperforming 2015 by a wide margin so we could put things on cruise control and hit 3,500 residential sales this year. The old benchmark of trying to hit 200 home sales a month to consider it a reasonable month is long gone and the new normal is 250 homes. If the 2,000 homes benchmark is a statistical anomaly, and it could be, we’ve still averaged over 250 homes sold per month over the past 30 months with no signs of things letting up. Once outsiders discover the beauty of a community like ours there’s no looking back and the battle to find affordable housing will never be won.
There are only 1,077 freehold residential homes for sale in the Central Okanagan in all price ranges right now which isn’t a lot especially as we approach the Spring market. What’s a little worrisome is that there are only 300 priced under $500,000 and only 130 priced under $400,000. Our marketplace averages about 240 residential sales per month so we have about 4 ½ months of inventory which makes the market appear balanced. Nothing to see here except when you parse the numbers down a bit. We’ve averaged 125 home sales per month under $500,000 over the past year and with only 300 for sale today this segment of the market is in a sellers’ market. No one keeps statistics of a particular market segment and everyone’s definition of a sellers’ market is different but I can’t remember conditions being this tight for buyers. It’s nothing like what we read happening on the coast but unless we see more homes come onto the market conditions are ripe for rising prices.
There are 392 apartments for sale in all price ranges which is more or less a so-so number considering our market generated just under 1,200 condo sales last year. The real number is 1,152 but let’s round up a bit just because it makes the math easier to calculate. With an average of 100 condo sales per month we have about 4 months of supply which is the tightest this market has been in a long time. To sum up, we need more condominium listings.
The good news is that we usually see an onslaught of homes coming onto the market as the weather gets nicer and this year shouldn’t be any different. Right? It’s likely cultural more than anything we come out of winter hibernation and clean out the garage, we sometimes just get the itch to make a move and this process is easier during the Spring and Summer. I’ll keep arguing that it’s more affordable during the Fall/Winter months but it’s an argument I keep losing.
Thanks for reading and feel free to drop by the office and say hi if you’re near Orchard Plaza.