Kelowna Condo market and a few random thoughts on our local market coming your way so get ready for some heavy duty statistics. Might even have a prediction or two at the end.
First of all, mining through strata/condo/apartment data is confusing so let’s start with some ground rules. I’ve excluded Big White ski resort sales as well as leasehold condos and I’ve included lakefront units. Just because. My blog, my rules. Some years there are a lot of million dollar plus Kelowna lakeshore sales and other years there are a lot of big ticket condo sales on Underhill and Bernard which aren’t on the lake so I’ve included them all.
Firstly, 477 West Kelowna and Kelowna apartment condos for sale right now and there have been 716 sales this year selling at an average price of $242,000. The good news is.Fourth consecutive year of unit sales increases and best year since 2008 when we recorded 743 sales. Bad news. Fifth consecutive year of dropping prices. The average sale price in 2008 was $293,000 and it’s dropped every year since. From 2009 to 2013 average sale prices were $259,000, $257,000, $256,000, $248,000 and $242,000 this year. Has the bleeding stopped? Are things as bad as the numbers say they are? Are we living through our own lost decade? Maybe, no and no.
Has the bleeding stopped? I think it has. When real estate values plummet, condominiums are the first to fall and when markets rebound Kelowna condos are the last to increase. With 477 units for sale on Kelowna MLS today we’re still mired in a buyer’s market and with an average of 60-65 sales a month there isn’t enough sales activity to meet supply. Too many listings, not enough buyers means downward pressure on prices. But with a 10% increase in unit sales and only a marginal decrease in values over last year is reason for optimism. I predict 720 sales next year at a $245,000 average.
There certainly hasn’t been a lost decade here in Kelowna. Ten years ago the average condo price was $139,000. In this light $242,000 seems pretty good by comparison. Overall, condominium statistics here are the most difficult to interpret. The development of condo projects on Sunset as well as Sarsons, Park Place, The Madison, Invue and Centuria etc. over the past decade has certainly changed the landscape of our city as well as what the stereotypical buyer look like. Long gone are the days where condos were just built for first time or last time buyers. Now is a great time to buy a Kelowna condo for investment or to live in! Call a condo expert
Thanks for reading everyone and enjoy the holidays.