MONSTER MONTH- Kelowna real estate. July MLS data showed we recorded 233 residential sales for the month compared to only 165 for the same month last year. I’m not sure why either. We can’t credit or blame HST any more and interest rates are similar to last year. When I ask around people say the weather has been a lot better but my experience has been that people don’t buy or not buy a house because it’s partly cloudy with a chance of afternoon showers. Regardless of why, July 2012 was a good month but we still have a lot of work to do.
Digging deeper into the 233 sales number….There are still 2,147 residential homes for sale in Kelowna so this means there is still over 9 months’ supply of homes for sale making this a buyers’ market and I can’t even remember the last time we were in a balanced market. We would need to generate 350 sales a month in order for it to be balanced or see 750 homes come off the market. Nevertheless, everyone can agree that the surge in unit sales last month is reason for optimism.
You might be thinking “so what…what’s my house worth”. Through the first 7 months of this year the average sale price is $489,000 compared to $501,400 for the same period in 2011 and $523,800 for 2011. The rigid laws of supply and demand seem to be playing out here with prices decreasing slightly, we’re seeing more sales activity.
Let’s quickly talk about condos. There are 1,502 strata units for sale right now and there were 131 sales last month make it a buyers market as well. Prices have to come down in this segment of the market but they’re staying high. If you’re a condo owner, there’s less than a 1 in 10 chance your condo will sell next month so consider dropping that price.
Finally, foreclosures. There are 66 residential foreclosures on the market which isn’t that alarming but the number of sales is certainly on the increase, albeit slightly. So far this year there have been 78 foreclosure sales compared to 57 for same 7 months last year. There were only 7 in 2008, 29 in 2009 and 47 in 2010. Everyone wants to see that momentum halted but it appears that the pre 2005 days where a foreclosure was a rarity are long gone.
I hope you’re enjoying your Summer and drop by and say hi if you’re passing through Kelowna
If you want to see some interesting parts of Kelowna and you are up for an early morning ride Text or call Andy at 250-979-8066