Throughout the past few months, the Kelowna Real Estate Market has continued a trend towards a balanced market. With nearly 6 months’ supply, we may have finally reached a true balanced market in Kelowna.
SO WHAT DOES THIS “BALANCED REAL ESTATE MARKET” REALLY MEAN?
Characteristically, interest rates tend to be a little more affordable and the number of buyers and sellers in the marketplace are aligned. The scales don’t lean towards an advantage for Buyers or Sellers, meaning the market is normal without experiencing volatile swings. In past decades, balanced markets were common, but we haven’t seen that in many years in Kelowna or British Columbia.
SIGNS OF A NEUTRAL MARKET:
● Inventory is normal as compared to previous normal months / years.
● 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.
JUNE KELOWNA REAL ESTATE MARKET HIGHLIGHTS
● Single Family Homes – sales down 16% from last June
● Single Family Homes – prices up 5% from last June
● Single Family Homes – 5.9 months supply of inventory
What is interesting is that with the increased number of listings we are still seeing an increase in prices over last year. Also interesting is that the days on market has dropped from 61 days last June to 49 days to this June.
Many elements impact the real estate market, including mortgage interest rates, inflation, employment, investment, construction, immigration, politics, and the health of local and world economies. All of these influence the supply and demand of the market which, in turn, affects prices.
That is why it is important to talk to a professional about the local market. Too many headlines do not look in depth at the numbers and are unable to provide expert advice. Kelowna is a unique real estate market with many contributing factors that must be considered when buying or selling a home.