Improved Kelowna Housing Market
The market improved in February in both the number of unit sales and in the prices. So far this year, through the first two months, there have been 144 residential home sales at an average sale price of $429,988. January saw 54 residential transactions with an average sale price of $420,000 while February saw 90 homes sell at an average price of $435,000. It’s encouraging to see both the number of homes selling and prices increase, albeit marginally, this year and hopefully this will continue. It’s certainly something to build on.
There certainly is a disconnect going on between Kelowna home sellers and potential buyers. While there has been equity erosion over the past ten months, many home buyers are of the mindset that Kelowna sellers are prepared to accept any offer presented to them and this just isn’t the case. Kelowna remains a blue chip real estate market and continues to outperform the overall Canadian housing market.
A quick word about foreclosures…
In California, during the Fourth quarter of 2008 there were 80,595 foreclosures in that state. We all know the reasons by now which include adjustable rate mortgages, NINJAA (no income, no job, no assets) loans, no documentation loans, interest only loans etc. This has clearly created unimaginable hardship for each family involved, but 18 months into the U.S. sub-prime crises and there are only 15 foreclosures here in Kelwona. 15! There are so few, I can just about type all of them out while holding my breath…Camelot, Saucier, Carruthers, Lakeshore, Clement Quail, Westpoint, Fitzpatrick, Spyglass, Warbler, Mission Ridge, Feedham, Woodridge, Vintage Terrace and Roth.
With our neighbours from Vancouver, Alberta and USA largely staying out of the Kelowna housing market, we will continue to be dependent on local buyers which means less activity in the luxury condominium sector and the vacation home market. There has only been one sale above $1 million this year which is skewing the average price downwards. All other residential sectors in all areas of the city have active housing markets and sharply (ok, really sharply) priced homes continue to sell. The good news is that a lot of commerce is still taking place and there are a lot of unbelievable buying opportunities right now. Let me know if you would like specific information on current deals especially luxury condominiums and lakeshore properties which are becoming plentiful.