What is the Kelowna Real Estate Market Like in the Summer?
What is the market like in Kelowna is something I've been asked a lot these last few weeks especially by agents and buyers out of Alberta and Ontario.
The first part of my answer is, "Not anything like it was in 2021!"
I think you could look at any market in the entire country and have the same response as 2021 will go down as a record year for most market across Canada.
As an example, the board that I am a part of here in the Central Okanagan is called the AIR or Association of Interior Realtors. It covers Revelstoke, Kamloops, Kootenay's, South Peace, North & South Okanagan and of course the Central Okanagan.
Sales were down across all of those districts so far this year by 25%, while inventory is up in the Central Okanagan by 72% when looking at May statistics.
Ok, so Sales Down, Inventory Up...What Does it Mean?
Usually in a larger market like Calgary (where we also sell homes), I would say that spells disaster for what's to come as typically builders were building to try and keep up to demand.
When demand starts to wane and you have a lot more invetory to move, prices are going to slip.
Right now in the Central Okanagan, this doesn't seem to be the case as prices are up on single family homes by 8.2% this year. Condos and townhomes are up 26% and 20% respectively, with the condo market leading the way in terms of price growth but also inventory levels dropping by 10% comparative to last year.
A big part of the reason there is a bit of a run on condos this year is because single family affordability is out of reach for some, especially with an increase in interes rates looking to slow inflation down it will have a similar impact on the housing market.
So, is the Okanagan market about to crash? Are we on the precipice of disaster? Do we believe everything that the media is saying or the naysayers like Garth Turner who has been calling for a market crash for the last 25 years?
I'll answer those questions like this, so long as demand remains strong for the Okanagan and the ability to build new construction (except for condos) is low, prices will likely remain where they are.
The single family market is going to see a slight correction, the caveat to that is this, oil is going to $180 per barrel.
That will be a fact of life in 2023. Why? Because 'they' are calling for a massive shortage in oil supplies by next year.
There WILL be a need for Alberta oil in Canada and across the globe. There WILL be more Alberta money flowing through to the Okanagan in the coming years, like there was pre pandemic.
So long as there is demand and a shortage of supply, prices will likely remain stable.
If you are thinking about making a move to Kelowna, you should check out these other blog posts right here first:
- How Much Are Housing Costs in Kelowna?
- What can $500,000 Buy in Kelowna?
- What is Health Care like in Kelowna?
If you want to chat more about the Kelowna Real Estate Market then feel free to email me firstname.lastname@example.org or text 403-827-7527