There are currently 1,765 residential homes for sale in Kelowna. This is more inventory than we are able to sustain with only 72 sales in December but December is traditionally the slowest month of any year in real estate. There were 141 sales December 2007 which is about a 50% drop in number of homes sold month over month.
If you are a numbers person (and you know who you are) you’ll enjoy looking at the median and average sales prices for December 2008 versus 2007. The average sale price December 2007 was $520,000 which is UP from $507,000 the year before. The median price for December ’08 was $430,000 which is down from $465,000 December ’07. This can be partly explained by the fact that there were 5 homes selling last month over $1,000,000 which skewed the averages higher. The median sales price is always lower than the average sale price.
The important number to look at though is 72 homes selling last month and whether or not this is the new normal and the days of 200-250 sales a month are over. I think we’re going to have another year like 1999 when there were 175-180 homes selling per month. We’re certainly going to see more real estate agents leaving the business this year because there isn’t a single candidate taking the real estate course this Winter with our company and we typically have 10-15. Even if I’m right with the 175 homes selling per month this year, that isn’t enough to sustain an inventory of 1,765 homes for sale so we will likely see downward pressure on prices. If you are thinking of buying now is a good time, there are some great opportunities for sale.
The condominium market took the month off in December with 38 sales with an average sale price of $301,000. This is down from 92 sales in December 2007 with an average sale price of $309,700. There are 1,480 condos for sale right now not including new projects which don’t show up on our MLS system. The condo market, especially with out of town buyers, usually explodes in Spring after the highways from coastal BC and Alberta become a little more manageable.
Living in Kelowna,
Royal LePage Kelowna
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01