April Will Outpace March
There are currently 2080 residential houses for sale in Kelowna ranging in price from a low of $199,000 up to a high of $18,000,000. If you own a high end luxury home in the Central Okanagan you might want to sit down for the rest of this.
Out of the 2080 homes for sale right now, there are 766 priced over $800,000 which represents 37% of our inventory. Compare and contrast this with what’s currently going on in the housing market where there have been 366 residential sales this year and only 14 homes selling over $800,000. After double checking my math that’s 3.8% of all sales. If our market is generating 5 sales a month in this exclusive price bracket there’s currently a 10 year supply of homes. Don’t get me wrong, I’ve been in many of them and they’re all beautiful, well appointed with nice fixtures, terrific neighbours close to good schools but there’s a widening disconnect in our market with buyers giving these homes a collective pass.
The good news is the rest of the market is active and clicking on all cylanders (ok….almost all cylinders). There were only 60 sales in January, 90 in February and 141 in March. Prices have increased monthly as well with $420,000 in January, 425,000 in February and $438,000 in March. Unless something cataclysmic happens, April will outpace March so all arrows are pointing up. We aren’t seeing average sale prices in the $500,000 plus range like we were accustomed to in previous years but we’ve certainly dusted ourselves up off the carpet and are swinging again.
The really big news though are mortgage rates. If you negotiated a prime less 1 point variable rate you now have a rate less than 2%! Borrowing for a home has never been more affordable and with the bottom of the Kelowna housing market two months behind us, renters who are still sitting on the fence are out of logical reasons to be on the outside looking in.
We’re going to allow ourselves to be optimistic with condominiums also. The pattern with residential houses repeats itself here with January, February and March reporting average sale prices of $262,000, $267,000 and $274,000 respectively. The number of condominiums selling for these months has been increasing also with 67, 74 and 113 units each month.