Sobering news for homeowners trying to sell in the $700,000 plus range this quarter. There are currently 1988 residential homes for sale in Kelowna (and area) with an average asking price of $878,000 (not a typo). The average sale price for the first three quarters this year was $481,000 indicating the disconnect is continuing and widening with what purchasers believe homes are worth and actual values. Having almost 2000 homes on the market is well above where it ought to be and we will likely see a lot of listings come off MLS as we approach Winter.
There were 684 residential sales for the third quarter this year which is an improvement over the 441 sales recorded for the 3rd quarter last year. Q3 2008 was when the wheels fell off the bus but it looks like low interest rates are finally bringing first time buyers into the marketplace. The out of town high end investor hasn’t decided to come back to the party yet so most transactions are from local buyers. The average sale price for the third quarter was $499,100 down from $530,000 for Q3 2008.
There’s a lot going on in Kelowna over the next little while with the Okanagan Fall Wine Festival starting next week and then the Okanagan International Marathon will be happening during Thanksgiving. Both of these events bring a lot of people into our fair city and it is not unusual for them to come back at a later date and look at the possibility of buying in our fair city.
Having your home on the market during the Wine Festival and the Okanagan Marathon could be a good thing, you never know where the next buyer is going to come from.