Is now the time to buy Kelowna real estate?

 

 

August Real Estate News

August 2016

The Kelowna real estate market (from Peachland to Oyama) continues to be HOTTTT! For four months in a row we saw the average home price reach over $600,000. That means we can assume that this is our new benchmark now, as it is up from $500K last year or 20% in the last 5 months. As everybody knows, our market is especially hot around the $500,000 mark, 40% – 50% of all inventory is selling in 1 month, this is remarkable for Kelowna! Supply and demand regulates the price, inventory is on a record low, and sales are up at a record high. By the end of October we should already be over the best year ever of sales in Kelowna and area.

So the big question is: 
Is now the time to buy? What are the chances, percentage wise, that I will I be able to purchase a property for less in the future? If so, by how much? What are the chances that I will have to pay even more?


As you can see in the graph above, in the last 40 years, every boom last lasted 5+ years. After every boom, it either slows flat or there is a correction.  But the correction has never been to less than it was before the boom started.

 
Sales in the Single Family Dwellings (SFD) reached 303 this August which makes it the highest August ever in the history of Kelowna. This is 14% above the 266 sales in August 2015 and is 50% above the 10 year average. The second best August was in 2007 with 282 SFD selling.


Listings there are currently 762 active listings, which is 31% less than August 2015. This is the lowest inventory in August since 2005.


Listings vs. Sales 39.76% of the listing inventory sold in August which is the highest ever for August.This means we are in a deep sellers market especially under $700,000.


The Single Family Dwellings (SFD) average price for Kelowna is $616,480.

Average Price
The Single Family Dwellings (SFD) average price for Kelowna was $616,480 for August which is the fourth time over $600K in a row and up 16% over last year’s August.

Apartment and Townhomes. A total of 279 units sold in Kelowna and area this August. 46% of the listing inventory sold in Townhomes and 47% of Apartments sold.

Lots: 57 lots sold on MLS out of 391 available this August which makes it a 16% sell to inventory ratio.

Million $ Plus

The MLS system shows that a total of 47 properties of al kinds sold over $1Million. 5 Commercial and 42 residential properties sold in August over $1 Million. These were: 11 Lakefront Homes, 22 Single Family Dwellings, 6  Acreages, 2 Apartments and 1 Townhome.

 

 

 

Major Cities Report

 

Victoria

Victoria Property Sales Continue Record Breaking Pace

A total of 883 properties sold in the Victoria Real Estate Board region this August, an increase of 19.2 per cent compared to the 741 properties sold in August last year.
Inventory levels remain lower than last year, with 2,094 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of August 2016, 43.2 per cent fewer than the 3,688 active listings at the end of August 2015.

Vancouver

Metro Vancouver Home Sales Return to Typical August Levels

For the second straight month, home buyer demand in Metro Vancouver* moved off of the record-breaking pace seen earlier this year and returned to more typical levels. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Metro Vancouver totalled 2,489 in August 2016, a decline of 26 per cent compared to the 3,362 sales in August 2015; 10.2 per cent less than the 2,771 sales in August 2014; and one per cent less than the 2,514 sales in August 2013. August 2016 sales also represent a 22.8 per cent decline compared to last July’s sales. From a historical perspective, last July’s sales were 3.5 per cent below the 10-year sales average for the month.

New listings for detached, attached and apartment properties in Metro Vancouver totalled 4,293 in August 2016. This represents an increase of 0.3 per cent compared to the 4,281 units listed in August 2015 and an 18.1 per cent decrease compared to July 2016 when 5,241 properties were listed. The total number of properties currently listed for sale on the MLS® in Metro Vancouver is 8,506, a 21.9 per cent decline compared to August 2015 (10,897) and a 1.9 per cent increase from July 2016 (8,351). The sales-to-active listings ratio for August 2016 is 29.3 per cent. This is indicative of a seller’s market.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $933,100. This represents a 31.4 per cent increase compared to August 2015 and a 4.9 per cent increase over the previous three months.

Sales of detached properties in August 2016 reached 715, a decrease of 44.6 per cent from the 1,290 detached sales recorded in August 2015. The benchmark price for detached properties increased 35.8 per cent from August 2015 to $1,577,300. This represents a 4.2 per cent increase over the past three months. Sales of apartment properties reached 1,343 in August 2016, a decrease of 10.1 per cent compared to the 1,494 sales in August 2015. The benchmark price of an apartment property increased 26.9 per cent from August 2015 to $514,300. This represents a 6.1 per cent increase over the past three months. Attached property sales in August 2016 totalled 431, a decrease of 25.4 per cent compared to the 578 sales in August 2015. The benchmark price of an attached home increased 31.1 per cent from August 2015 to $677,600. This represents a 7.1 per cent increase over the past three months.

Calgary

Detached Versus Higher-Density Segments: Two Very Different Stories in August

Overall sales activity was down again in August, totaling 1,567. However, this figure does not reflect the big differences in activity between the detached sector, versus the high density apartment and attached segments of the market.

The detached benchmark price totaled $503,200 in August, 3.3 per cent below last year, but similar to levels recorded the previous month. Meanwhile, condominium apartment prices continue to decline totaling $274,900 in August, 7 per cent below last year and are at levels comparable to figures reported at the end of 2013.

Price declines were higher in the apartment sectors, due to the more pronounced imbalance between supply and demand. On average, apartment inventories rose to levels well above historical norms. At the same time, sales are at their weakest level since 2003 causing months of supply to average over 6 months so far this year.

Edmonton

Edmonton’s Real Estate Market on Par With Last Year

August’s all residential average sale price in the Edmonton Census Metropolitan Area (CMA) remains consistent with last August at $369,956, down 4% from July of this year. The price of single family homes in August dropped 4% relative to July from $450,366 to $434,362. Year-over year prices remained stable decreasing by less than 1%. The average condo sale price for August 2016 of $251,526 is down 2% month-over-month (m/m) and 1% year-over-year (y/y). The average duplex/rowhouse sold for $344,377; down 2% y/y and down 1% (m/m).

Toronto

Strong Sales & Price Growth in August

Toronto announced that Greater Toronto Area REALTORS® reported a record 9,813 sales through MLS® System in August 2016. The MLS® Home Price Index (HPI) Composite Benchmark for August 2016 was up by 17.2 per cent on a year-over-year basis. Similarly, the average selling price for all home types combined was up by 17.7 per cent on an annual basis to $710,410. Both the MLS® HPI benchmarks and average prices for low-rise home types were up by double digits percentage-wise.

 

 

 

Gourmet Kitchen, Heated Pool, Lots of Updates

1947 Horizon Drive
3 Bed | 2.5 Bath | 2,657 sqft | Built 1988 | $779,800

Walk through the covered entry and step in to the bright foyer with skylights and 15ft ceilings. The massive kitchen is custom designed from floor to ceiling with Westwood maple cabinets and granite countertops. A wall of windows makes this kitchen unique and bright. It features a large island bar with a built in gas stove, stainless steel appliances, tile floors and a sunroom with a door to the backyard. The sunken living room has a gas fireplace with a floor to ceiling rock feature, large windows, 17 ft ceilings, and a built in wet bar. The private backyard has beautiful mountain views of Mt. Boucherie and a stone patio that leads to the flat fully fenced grass area and a few steps down to the heated inground pool with new liner. Walking upstairs, you will be greeted by the reading mezzanine open to below. You will also find the massive 20×15 master bedroom with a luxurious ensuite complete with double sinks, large soaker tub, heated floors, separate shower and toilet room, and a 120sqft walk-in closet with skylight and built in organizers. Enjoy the extra parking including space for your RV.
View more photos, information and video walkthrough available here