September 1, 2023
Often in the Kelowna real estate market, August slows down a little bit. Out-of-town buyers are on their way home (many Alberta school districts start in late-August, as an example), and our local families try and take advantage of the last remaining weeks of summer. Due to the Bank of Canada interest rate rise in July, we were already seeing a decrease in market activity as buyers worked to re-align their wish lists and expectations with the current market and rates. That should have been the whole story for August. Unfortunately, then came the devastating McDougall Creek wildfire and subsequent fires in Kelowna and Lake Country. Our community had a collective pause as neighbours worked together to provide support to those who were most affected and those working tirelessly on the front lines to protect our neighbourhoods and homes.
From a real estate perspective, an inability to get insurance caused some deals to collapse (before going firm) or delay (extending completion dates) and this will continue until the threat dissipates. In addition, would-be buyers who don't 'have' to move, paused their searches. Some potential sellers have also delayed coming to market. When looking at just the numbers, we'll see the impact for the next couple of months; however, should we get a positive Bank of Canada announcement in September, we will see market activity pick-up through September, October and November.
Numbers aside, the wildfires were devasting to our community. Our hearts go out to those who lost their home and possessions and we wish you the best as you begin to rebuild and readjust. In addition, we cannot express enough gratitude to our fire crews and first responders who showed true heroics. We are proud to call the Okanagan home and although not surprised, it was awe-inspiring to watch our community come together. We really do live in the best place on earth and it isn't just because of the views, amenities and recreational activities. It's because of the people.
The average sale price for a townhome in the Central Okanagan remains fairly steady. In the past 2-years, the segment high was $860,573 in March 2022 and then $776,996 in November 2022.
Average days to sell - 45
Average sale prices for a single family home in the Central Okanagan remains steady throughout the past year, with the peak being September 2022 where the avg. sale price was over $1.3 million.
Average days to sell - 49
If you're looking to buy or sell Kelowna real estate, contact Nyrose & Associates today!