2018 is off to a strong start with solid numbers for home sales
Single Family Homes and Condo sales are up dramatically from last year while Townhomes sales saw no increase and remained the same. Overall for 2018; it is too early to tell what this actually means for the Kelowna Real Estate market.
Could it be carry over of mortgage pre-approvals from 2017 before the new rules came into effect?
Is it as we suspect, continued increase in demand in the Okanagan?
Both prices and inventory of properties available have also risen already in 2018. Perhaps the most telling statistic is to look at how many months’ supply of homes we have on the market. This is basically how many months, at the current rate of sales, it would take to sell all the homes currently listed. Currently Kelowna sits at 3.6 months’ supply, which would be considered a sellers’ market. A balanced market would have 5-6 months available supply. This is something we will be watching closer as the year progresses.
JANUARY 2018 KELOWNA REAL ESTATE MARKET HIGHLIGHTS:
- Single Family Home sales – are up +39% over January 2017
- Townhomes/Condos sales – are up +29% over January 2017
- Lot sales – are up +44% over January 2017
What does this mean for buyers in 2018?
There are two main components to take into consideration when it comes to buying activity in 2018:
- Tighter mortgage lending rules
- Threat of higher interest rates
Because of the recent changes to mortgage lending rules, buyers will have a harder time being able to afford to buy the same house as they would have in 2017.
What this could ultimately mean is that more buyers will end up competing for less expensive properties—which could possibly force the prices of condos and townhomes to increase; these properties previously were considered more affordable.
If you are looking at buying in 2018, it would be a smart decision to secure a mortgage pre-approval sooner than later. This will help to determine just how much you qualify for. It is also in your best interest to talk to a bank or mortgage broker to discuss your particular situation and prepare you for your home search.
What does this mean for sellers in 2018?
If you are planning to become a Kelowna home seller in 2018, staying competitive will be your key to success. It would appear that the days are over where you could expect to sell your home within a week or to have a bidding war in your favor. Buyers may find it difficult to afford what’s out there and the possible result is a rise in inventory and a drop in sales activity and prices.
Nyrose and Associates can help you stay competitive, and we can create a strategic plan for selling your home for the highest amount in the shortest time.
Get in touch with the Kelowna Real Estate Pros at Nyrose and Associates today if you have any questions about the Kelowna Real Estate Market for 2018; we are always happy to help.