Kelowna Real Estate Update

 

December Real Estate News

January 2018

2017 has come and gone, and we are left with another excellent year. Sales for Single Family Dwellings have seasonally slowed, but remains to be the best December in history.
Listings are quite low at 602, well under the 10 year December average of 940.  The list-to-sell ratio, that golden litmus test that we always refer to is at 26%, just on the edge between a balance and seller’s market.  The same goes for apartments at 26%, but townhomes have continued to outperform everything else, even with a 20% fall in sales (year over year), they still saw a mighty 33% of inventory sell in December.Starting January 1, the new mortgage rules came into effect, so we are curious to see how these will affect the market. We’re also curious to see if the strong December is from a push of buyers to get in before the changes or if our market is truly not slowing pace.

New Construction
CMHC is forecasting construction starts for 2018 to slow from just over 3,000 in 2017 to just over 2,500, but a lot of the 2017 starts have not come online yet.  In fact, there are many projects that are still 2+ years away from completion.  In 2018, we will see a few big projects finally coming online including SOPA Square in the South Pandosy area, 1151 Sunset downtown, Cambridge House (micro suites) and Central Green.  However, typically when people are looking to flip units, we would start to see quite a few re-sales coming online, so far we haven’t seen much evidence of this.  SOPA Square currently has 4 units listed, and 1151 Sunset currently has 3 units listed.  Compare this to Cambridge House where we’ve seen 17 units be listed and resold of the 192 micro suites (313sqft) units in the complex (and it’s still 6 months away from completion).  This tells us that less people have purchased the higher end units to flip compared to the less expensive micro suites.  At this point, we are not expecting a massive flood of inventory from these complexes as they approach completion.


Sales, in the Single Family Dwellings (SFD) reached 156 this December which makes it the best December in the history of Kelowna. This is 19% above December 2016 but just edges passed December 2015


Listings, there are currently 602 active listings, although low, it is 21% more than December 2016.  This is still the second lowest inventory in 25 years.


Listings vs. Sales, 26% of the listing inventory sold in December which is very good for December. As you can see, townhomes are flying compared to the rest.


Average Price, The Single Family Dwellings (SFD) average price for Kelowna is just under the $700,000 threashold which it crossed in May 2017, but has since been floating around.

Lots: 23 lots sold on MLS out of 308 available this December.  The most expensive was a 10 acre parcel on Swamp Rd that sold for $945,000

Major Cities Report

 

Victoria

Had a strong 2017, but moving to a balanced market

“Overall, the low inventory and the continued interest in Victoria real estate meant that well-priced homes were quick to sell in 2017. Moving forward, we expect to see more inventory come into the market, which will continue to move us toward a more balanced state,” adds President Balabanian. “We also expect housing prices to remain stable, without the increases we tracked in 2016, and anticipate steady slow growth. In markets like these, it’s important to enlist the services of a REALTOR® to help you navigate what may be your largest transaction ever.”

Vancouver

Steady sales and diminished listings characterize 2017 for the Metro Vancouver housing market

The Real Estate Board of Greater Vancouver (REBGV) reports that sales of detached, attached and apartment properties reached 35,993 on the Multiple Listing Service® (MLS®) in 2017, a 9.9 per cent decrease from the 39,943 sales recorded in 2016, and a 15 per cent decrease over the 42,326 residential sales in 2015.
Last year’s sales total was, however, 9.7 per cent above the 10-year sales average.
“It was a steady year for home sales across the region, led by condominium and townhome activity, and a quieter year for home listings,” Jill Oudil, REBGV president said. “Metro Vancouver home sales were the third highest we’ve seen in the past ten years while the home listings total was the second lowest on record for the same period.”

Calgary

December sales activity rises again but so does supply.

Sales activity for all product types improved in December and pushed monthly sales to long-term averages for the second month in a row. However, new listings also rose, keeping inventory elevated compared to typical levels for December. With more supply remaining compared to sales, benchmark prices edged down for the fifth consecutive month. “Many of the economic indicators continue to post modest improvements, including improving sales. However, demand gains have not outpaced the additional supply coming into the housing market. This is creating some of the bumpiness in terms of price recovery,” said CREB® chief economist Ann-Marie Lurie, who added that prices have stayed comparable to last year.

Edmonton

Stable prices and increased sales in the 2017 real estate market

The Edmonton Census Metropolitan Area (CMA) real estate market marked a year of overall stability in 2017. All residential year-to-date unit sales were up 1.50%. In total, 16,441 residential units were reported sold in 2017 as compared to 16,198 in 2016.
Year-to-date prices were also consistent with modest increases throughout 2017. Average single family home prices increased 0.77% to $437,744 and average duplex/rowhouse prices increased 0.12% to $348,225, while average condominium prices decreased 0.96% to $248,130.

Toronto

Sales slow due to government policy

Toronto Real Estate Board President Tim Syrianos announced that Greater Toronto Area REALTORS® reported 92,394 sales through TREB’s MLS® System in 2017.  This total was down 18.3 per cent compared to the record set in 2016.

“Much of the sales volatility in 2017 was brought about by government policy decisions.  Research from TREB, the provincial government and Statistics Canada showed that foreign home buying was not a major driver of sales in the GTA. However, the Ontario Fair Housing Plan, which included a foreign buyer tax, had a marked psychological impact on the marketplace.  Looking forward, government policy could continue to influence consumer behavior in 2018, as changes to federal mortgage lending guidelines come into effect,” said Mr. Syrianos.




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10751 W Okanagan Centre Rd
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View more photos and information available here