A Tale of Two Income Brackets
Through the first 10 months this year there have been 1,822 residential in Kelowna with 1,055 homes selling under $500,000 and only 767 selling over $500,000. This isn’t an unusual statistic but what is making most people sit up straight and take notice is that while 42% of homes are selling over $500,000, 53% of the homes for sale are priced above $500,000. At a rate of 105 sales per month under $500,000 there is currently 7 ½ months of inventory in this price bracket which isn’t what we’re accustomed to but it won’t keep us up nights. On the other hand at a monthly sales average of 77 sales over $500,000, there is currently over 17 months of inventory on the market. This means if So, if you’re wondering if you are seeing more For Sale signs while driving through some of the nicer neighbourhoods you are. It’s even more pronounced the higher the price bracket. There was just 1 (not a typo) sale over $1 million in October and 0 so far in November.
There are currently 320 homes for sale in Kelowna in the $250,000 to $400,000 price range (7 month supply) which is considered a buyer’s market. In order to sell a home, price is more critical than ever to encourage showings and written offers.
The average Canadian homeowner has $136,000 in equity and the average mortgage rate is currently 5.41% compared to 5.56% last year. The percentage of Canadians who are 90 days or more past due in their mortgage payments is 0.28%. In Kelowna right now (Tuesday Nov 5th 3pm) there are only 14 homes in foreclosure (contact me if you want the list) including 1 mobile home and 1 condominium.
Living in Kelowna,
Andrew Smith and Jo Ann McLellan
Smith McLellan Group
Royal LePage Kelowna
Follow me on Twitter @smithap01