Is Kelowna in a “Neutral Real Estate Market”? A Neutral Market is considered balanced; the scales don’t tip in either direction, meaning the market is normal without experiencing volatile swings. This type of market can see the number of buyers and sellers in the marketplace equalized.
Signs of a Neutral Market
- Three to six months of inventory is on the market.
- Comparable sale prices are close to active listing prices.
- Sales numbers have stabilized.
- Median sales prices are flattened.
- Real estate advertising remains uniform
This past year we have seen sellers basically fall into two groups ….. 1) committed sellers who have a reason and intent to sell and 2) others who are “fishing” or just testing the market. The true sellers have tended to sit and wait while the ones fishing have been pulling their properties off the market if they don’t get the amount they’re looking for soon enough. The issues with sellers who were just fishing for a high price, in fact were diluting the market. As they drop out and buyers return, we hope to see a healthy more neutralized market back in place. If the facts are true, we expect to see inventory rise without the craziness of what we saw earlier this year in regards to rapidly increasing prices. We should see houses list with asking prices close to market value start to be the trend.
KELOWNA REAL ESTATE HIGHLIGHTS FROM August 2017
- Total property sales were 510
- Total inventory of properties were 1855
- Single Family Homes median price over last 4 months is +1%
Based on the results in August, we have just over 3 months supply of homes on the market. We may see people also keeping an eye on interest rates, with the Bank of Canada increasing the interest rate earlier this week.
Although many individuals are focused on the fact that home prices are climbing exponentially, when this simply is not true. The Kelowna market has shown signs of being balanced for the past 4 months. Statistics can be manipulated to show various viewpoints and unfortunately the media can sometimes give one version (usually the sensationalist one) of the story. To truly understand the local market you need to use a local professional Real Estate team. Contact the professional team of experts, the Kelowna Real Estate Pros at Nyrose and Associates at 250-575-1946 today to ensure you have all the facts of this changing market.