Boom or Bust for Kelowna in 2016?

 

2015 Real Estate News

2015 one of the 3 best years for Kelowna

In April 2015 our market changed direction and we saw approximately 25% of the inventory selling, which is very good for Kelowna. (See graph below) 

The amazing new trend we noticed is in the strata units. Apartments and townhomes are now selling over 20% of the inventory in a month, which is equally impressive. Nice, new, clean apartments and townhomes are very appealing to the first time buyers. The average price for single family dwellings is just over $500K and Townhomes are selling at $370K and apartments at $260K.
Sales are up and inventory is down. Supply and demand regulates the price.
We think 2016 is very well positioned. We are looking forward to a very strong year.


Sales in the Single Family Dwellings (SFD) reached 154 this December which makes it the highest December ever in the history of Kelowna. This is 9% above the 141 sales in December 2014 and is 42% above the 10 year average.


Listings, there are currently 649 active listings, which is 17 below December 2014. This is the lowest inventory in December since 2003.


Listings vs. Sales, 23.73% of the listing inventory sold in December which is very good for December and is one of the best 3 years ever; meaning we are almost in a sellers market. With that being said, under $600,000, we are in a strong seller’s market and are experiencing double offers.


Average Price, The Single Family Dwellings (SFD)  average price for Kelowna was $508,627 for December which is the highest for Kelowna ever.

Apartment and Townhomes

A total of 132 units sold in Kelowna and area this December. 23% of the listing inventory sold in Townhomes and 22% of Apartments sold. That is very strong for Kelowna especially compared to single family homes at 24%.

Lots

Only 17 lots sold on MLS out of 398 available this December which makes it a low 4.3% sell to inventory ratio. Sales YTD reached only 207 compared to 244 lots sold last year. That is a 15% decline.

Million $ Plus

The MLS system shows that a total of 15 residential properties sold in December over $1 Million.  In December, these were: 3 Lakefront Homes, 7 Single Family Dwellings, 1 Farm and 3 Acreages
164 residential properties sold in 2015 averaging 14 a month compared to 170 in 2014.

Very interesting

2015 was a great year for real estate. We broke many records but at the same time it was not a runaway year meaning it was not over the top which we appreciate as it can create lots of pressure for the buyers and the sellers. A balanced market is the best for both parties.

Major Cities Report

 

Victoria

Active December Caps a Busy Year for the Victoria Real Estate Market

Victoria wrapped up 2015 with numbers they haven’t seen since 2007. This past year 8,295 properties sold an increase of 23.8% from last year. A total of 465 properties sold in the Victoria Real Estate Board region this December, an increase of 19.5% compared to the 389 properties sold in the same month last year. There were 2,517 active listings for sale on the Victoria Real Estate Board at the end of December, 21.6% fewer than the 3,210 active listings at the end of December 2014. The MLS® Home Price Index benchmark value for a single family home in the Victoria Core in December, 2014 was $560,900. The benchmark value for the same home in December 2015 has increased by 9.4% to $613,600.

Vancouver

Metro Vancouver Home Sales Set an All-Time Record in 2015

In a year when the number of homes listed for sale was below historical averages, actual home sales in Metro Vancouver set a new record. The Real Estate Board of Greater Vancouver (REBGV) reports that 2015 home sales were the highest annual total in REBGV history. This was powered early in the year by four straight months with more than 4,000 sales a month from March to June, another first for REBGV. Sales of detached, attached and apartment properties in 2015 reached 42,326, a 27.8% increase from the 33,116 sales recorded in 2014, and a 48.4% increase over the 28,524 residential sales in 2013. The total number of homes listed for sale on the MLS® in 2015 ranked fifth in the last ten years, while the MLS® Home Price Index (HPI) saw double-digit year-over-year price increases. The number of residential properties listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in 2015 reached 57,249. This is an increase of 2.1% compared to the 56,066 properties listed in 2014 and an increase of 4.6% compared to the 54,742 properties listed in 2013. With sales-to-active-listings ratios above 25% for 11 months in 2015, the Metro Vancouver market experienced seller’s market conditions for much of the year.

Calgary

Housing Market Characterized by Slow Demand

Elevated Supply Levels Placed Downward Pressure on Prices in December
December sales activity slowed to 878 units in the city, 18% below last year at this time and well below the five and 10-year averages. As a result, the unadjusted benchmark price dipped to $448,800, a 0.42% decline over the previous month and 2.33%  year over year. In December, monthly inventory levels declined, as expected, to 4,336 units. Yet they were still 28% higher than the same time last year, and at the highest December level recorded since 2008. On an annual basis, sales activity declined by 24% in the detached sector and 33 and 28% in the apartment and attached segments, respectively.

Edmonton

2015 Prices and Inventory Up, Sales Decline

Sales of residential property through the Edmonton Multiple Listing Service® (MLS®) System in 2015 in the Edmonton CMA were down 9% from 2014 but up over 1% from 2013. Although sales were down, prices are up year over year, with single family homes finishing the year over 1% higher relative to last year at an average price of $437,569. For 2015, the average price of a condo was $252,954 (up 0.4% from 2014) and the average price of all residential properties was $372,511 (up 1.5% from 2014).

Toronto

Record TREB MLS® Home Sales in 2015

The second best sales result on record for December capped off a record year for TREB MLS® home sales in the GTA. Toronto Real Estate Board President Mark McLean announced that there were 4,945 sales reported in December bringing the 2015 calendar year total to 101,299 – a substantial 9.2% increase compared to 2014 as a whole. Strong annual sales increases were experienced for all major home types last year. The average selling price for 2015 as a whole was $622,217 – up 9.8% compared to $566,624 in 2014




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View more photos, information and video walkthrough available here