April 2018: Signs of a shift in Kelowna Real Estate?

Kelowna Real Estate News

April 2018

Are these the signs of a shift in our market?  Compared to 2017, March sales were down over 20%, and surprisingly, townhome sales were down a staggering 38%! Listings are up over 20% in all segments. As the old saying goes “supply and demand regulates the price”, and this is no different. Although our average price reached $734,197 and is the highest it’s ever been, it looks like our market is poised to slow down.  Will we end up staying in a balanced market, or will we land in a buyers market? Time will tell.

This change in market is likely happening due to a number of factors including, new government policy and taxes, rising interest rate, and tougher mortgage rules.

Historically, April and May are the months when we experience market shifts. We will be watching very closely to see what happens this April.


Sales in the Single Family Dwellings (SFD) fell to 183 this March, 24% less than the same month last year and 12% under the 25 year average.


There are currently 801 active single family listings, which is 22% more than March 2017, but this is still 35% below the last 10 year average of 1,232, so we still have limited inventory.


Listings vs. Sales 22% of the listing inventory sold in March which puts us in a balanced market. Apartment condos are still selling well in a seller’s market, and townhomes are on the edge of a balanced market.


Average Price for Kelowna was $734,197 which is a record for Kelowna, 15% higher than this time last year.

Apartment and Townhomes

Townhome sales have slowed drastically compared to 2017, and listings are increasing as well.  Apartment condos have a similar story with more inventory available and fewer sales.

Lots

13 lots sold on MLS out of 333 available this March which makes it a 4% sell to inventory ratio. The average price came in at $322,157.

Major Cities Report

 

Victoria

Outside Influences Impact Spring Real Estate Market in Victoria

“As we expected, March sales are tracking lower than in 2017,” says Victoria Real Estate Board President Kyle Kerr. “This is likely due to a number of factors that have created hesitation in consumers, including recent heavy measures by the provincial government to reduce the value of home prices and the federal government’s new mortgage qualification rules.”

A total of 688 properties sold in the Victoria Real Estate Board region this March, 25.9 per cent fewer than the 929 properties sold in March last year, but a 26.2 per cent increase from the month previous. The sales of condominiums were down 28.2 per cent from last year in March with 211 units sold. Single family homes were 30.8 per cent down from the year previous, with 337 sold this March.

Vancouver

Buyers and sellers were less active in Metro Vancouver throughout the first quarter of 2018.

Residential home sales in the region totalled 2,517 in March 2018, a 29.7 per cent decrease from the 3,579 sales recorded in March 2017, and a 14 per cent increase compared to February 2018 when 2,207 homes sold.

Last month’s sales were 23 per cent below the 10-year March sales average. “We saw less demand from buyers and fewer homes listed for sale in our region in the first quarter of the year,” Phil Moore, REBGV president said. “High prices, new tax announcements, rising interest rates, and stricter mortgage requirements are among the factors affecting home buyer and seller activity today.”

Calgary

Housing market inventory on the rise, Prices remain stable compared to last year

As expected, slow sales this quarter have persisted through March in the City of Calgary. This is not a surprise, after stronger growth in sales at the end of last year following the announced changes to the lending market.

First quarter sales totaled 3,423 units, nearly 18 per cent below last year’s levels and 24 per cent below long-term averages. Easing sales and modest gains in new listings caused inventories to rise and months of supply to remain above four months.

“Economic conditions are slowly improving, but it has not been enough to outpace the current impact of higher lending rates and more stringent conditions,” said CREB® chief economist Ann-Marie Lurie.

Edmonton

Despite the year over year decreases, the market is still growing

“We generally see housing market activity increase at this time of year,” says Darcy Torhjelm, REALTORS® Association of Edmonton Chair. “Despite the year over year decreases, the market is still growing relative to February 2018 in preparation for the spring buying season. Market growth should continue in the coming months.”

Year over year sales were down. Single family home sales decreased 11.32%, condominium sales decreased 14.82%. Duplex/rowhouse sales decreased 3.45%. On average across all categories, year over year sales for all residential properties decreased 11.73%.

Toronto

Home sales are expected to be up relative to 2017 in the second half of this year

Greater Toronto Area REALTORS® reported 7,228 residential transactions through TREB’s MLS® System in March 2018. This result was down by 39.5 per cent compared to a record 11,954 sales reported in March 2017 and down 17.6 per cent relative to average March sales for the previous 10 years.

The MLS Home Price Index Composite Benchmark was down by 1.5 percent on a year-over-year basis for the TREB market area as a whole. The overall average selling price was down by 14.3 per cent compared to March 2017.




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