With housing dwindling inventory and the number of home sales increasing the chances of a home priced under $500,000 selling in a reasonable period of time are good. On the other hand, home owners with properties priced over $1 million are in for a long dark winter if planning on putting that home on the market. Here’s why…
There are 1,625 homes residential homes for sale in Kelowna right now including 437 priced over $1 million and 312 priced under $400,000. Through November 1st there were 97 homes selling in the million dollar plus category meaning with an average of 10 homes selling a month there’s about 43 months of inventory available (3 1/2 years). Home owners in this segment of the market are in need of further price corrections before moving trucks rumble through their neighbourhoods again.
On the other end of the housing spectrum, there have been 783 home sales for homes priced below $400,000 through the first 10 months. With 312 homes for sale in this price range there is a 4 month supply available. With six months of inventory considered a balanced market, the sub $400,000 market in Kelowna has become a seller’s market. It is always interesting when a market changes from a buyers market into a sellers market. The signs are apparent when the the inventory of homes listd for sale falls under a 6 month supply.
The average sale price in October (’09) was $518,600 with 250 homes selling. This is up from October 2008 when there were 97 homes selling at an average price of $458,500. The momentum seems to be on the rise with more homes selling than last year.
Is it better to rent or buy? Call Andrew for a FREE consultation to help you decide what the best option is for you in today’s real estate market.