As the Kelowna real estate market year winds down there are a few things we know for sure. The average sale price for a residential home in the central Okanagan slipped a little bit this year from a $501,000 average in 2012 down to $491,000. No real news here.There were a lot of affordably priced homes selling this year and the high end of the market had a pretty rough year.
Even though the average was down, your home could be worth more than it was last year. It’s not really good news for sellers but it’s not really good news for buyers either. Kelowna remains a high priced, blue chip community when it comes to housing and most of us have less discretionary income at the end of the month after a mortgage payment than most other Canadians which reverberates throughout the community. I don’t think anyone here has a tough time securing a mid-week dinner reservation in a local restaurant.
In the long term this is good for conservative home owners who take out 25 year mortgages, slowly pay them off and eventually have a pretty good asset once all is said and done. Â The bad news is it’s harder to break into our housing market for young people who have to find more of a down payment and need two or even three jobs to meet minimum debt service ratio requirements. This is just the way it is in Kelowna, at least since I moved here in 1996.
Another thing we know for sure is that there have been more sales this year than last year. With 2 weeks to go we’re 300 unit sales ahead of last year’s pace. Barring any weather related disaster we will hit 2,400 sales this Â year making this the most active year since 2007. We’re still a far cry from the 2002-2007 years when we averaged over 2,900 sales per year but a 17% increase in homes sold in one year is grounds for a little bit of celebrating don’t you think?
Let’s take a quick look at what’s happening in North Glenmore these days. There have been 135 residential sales so far this year selling at an average of $500,200. Our first home in Kelowna was in North Glenmore and I could always figure out its value easily because it always seemed to mirror the average in the rest of the city. Things may have changed a bit with the addition of Wilden in our stats. The average price has jumped from $272,000 10 years ago when there were 160 sales that year. Some may argue, but I think it’s the best place to raise kids. For North Glenmore homes click here
Best Wishes in the New Year!