Where is Kelowna's Housing Market Headed
WIth the perceived recent correction in pricing in the Okanagan Valley, I seem to be getting this question a lot lately, my answer my shock some that are expecting a massive shift in the market.
Those that know this area and understand economics will not be shocked, they know what the ebbs and flows are like in the Kelowna Real Estate Market.
Here are some stats for the market as a whole for the month of September:
- Benchmark Pricing for Single Family: UP 1.6%
- Benchamark Pricing for Townhomes: UP 7.9%
- Benchmark Pricing for Condos: UP 8.9%
- Sales for SF: DOWN 36%
- Sales for TH: DOWN 37%
- Sales for Condos: DOWN 37%
If we compare Q1 of 2022 to the same time in 2021 we saw an increase in prices for single family homes in Kelowna of 34%.
If we look at Q2 of 2022 and compare to the same time in 2021, we saw an increase of 15% of single family home pricing in the Kelowna market.
The Q3 numbers are going to be pretty close to the second quarter with an increase of 14.6% in the single family home market.
Is There a Trend Forming in the Kelowna Real Estate Market?
We we can certainly see something starting to form, what I can tell you is that sales in every housing category for every quarter of this year are down in some cases well over 30%.
Q1 prices saw an increase in the benchmark and Q3 is less than half of that increase, there is a very good case to be made that prices will continue to increase but at a much slower rate than what we have been witness to.
Inflation, interest rates and a pending recession will all have an affect on the housing market in 2023 here in the Okanagan Valley.
Is it better to wait to buy a home in Kelowna?
Is it better to wait and sell your current Kelowna home?
Well the answer to the first question can be found in the video that is embedded below. In this video I interview Clayton Blaney of Blaney Mortgage, we talk about housing affordability and compare March of 2022 to September of this year.
His graphic may surprise you, I know it did me.
The answer to the second question is this, if you are looking to sell and take advantage of your Kelowna equity lottery win, now is the time to do that.
Thing is you HAVE to have some patience, as mentioned earlier in this post, sales are down and so is demand. The average days on market is far higher than it was last year, so not only do we have to be realistic about pricing but we also have to be realistic about your time to sell.
If you want more information on what your home is worth in the Kelowna market, you can either click here to contact me or simple give me a call at 778-716-7527.