Prices Up, Sales Down?

Kelowna Real Estate News

Average Prices Are Up and Sales are Down in the Okanagan

The Okanagan’s summer was predictably hot once again, but the region’s housing market entered its seventh consecutive month of cooling sales.
There were 584 sales in September across the Okanagan Mainline Real Estate Board (OMREB), down from 709 the previous month.While the average price of a home inched up 5% over August and 8% over last September, the average price only tells part of the story.  Prices of homes have not begun to climb again.

We’re seeing a shift across the region with all signs pointing to a market continuing to transition from a sellers’ market to one that would favor buyers and sellers more equally,” said OMREB President Marv Beer. “While average price, at $534,943, crept past both the previous month’s pricing and this time last year, houses are sitting on the market for longer so it’s likely only a matter of time before we start to see downward pressure on price,” said Beer. The region’s average “days on market” jumped to 90 for September, compared to 78 last month and 78 during September of last year.

Available housing inventory has also increased 29% compared to last year, with even more housing projects slated to finish construction in the next 12-months. According to OMREB, that increase, along with a rising housing inventory, indicatesthe market is undergoing a normalizing trend that could lead to buyers being more discerning.


Sales in the Single Family Dwellings (SFD) reached 180 in September, this is 7% less than September 2017 and is in line with the 10 year average
There are currently 1,241 active single family listings, which is 29% more than in 2017, but this is still under the 10 year average of 1354.


Listings vs. Sales 14.5% of the single family home listing inventory sold in September which is edging into a buyers market.

Average Price for Kelowna was still quite high at $720,824, we anticipate the average price starting to come down soon.

Apartment and Townhomes

A total of 140 units sold in Kelowna and area this September. 12% of the listing inventory sold in Townhomes and 18% of Apartments sold.

Lots

11 lots sold on MLS out of 414 available in September putting out sell to inventory ratio to 2.6%. The average price came in at $168,500.

Major Cities Report

Victoria

Market Continues to Stabilize

A total of 533 properties sold in the Victoria Real Estate Board region this September, 16.7 per cent fewer than the 640 properties sold in September of last year.Sales of condominiums were down 30.4 per cent from last year in September with 149 units sold. Sales of single family homes were down 9.2 per cent from 2017 with 285 sold this September.There were a total of 2,646 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of September 2018, a 33.9 per cent increase from 1,976 last September.The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in September 2017 was $832,000, while the benchmark value for the same home in September 2018 increased by 6.2 per cent to $883,700.

Vancouver

Home Sales Continued to Lower

Sales of homes in Metro Vancouver remained well-below long-term norms in September.
The Real Estate Board of Greater Vancouver reported sales of 1,595 homes in the month, down 43.5% from a year earlier, 17.3% below August 2018 levels, and 36.1% below the 10-year average for September. Lower demand has allowed inventory to build with 13,084 homes available on the MLS for Metro Vancouver, a 38.2% increase year-over-year and a 10.7% increase month-over-month. There were 5,279 detached, attached, and apartment newly-listed properties in September; 1.8% down year-over-year but a 36% jump from August.
“Since spring, home listing totals have risen to levels we haven’t seen in our market in four years,” said Ashley Smith, REBGV president-elect. “Metro Vancouver’s housing market has changed pace compared to the last few years. Our townhome and apartment markets are sitting in a balanced market territory and our detached home market remains in a clear buyers’ market,” Smith said.

Calgary

Persistent Buyers’ Market Continues

With no change in the economic climate, Calgary’s sales activity totaled 1,272 units in September, a 13 per cent decline over the previous year and well below long-term averages. Inventories totaled 7,941 units, pushing the months of supply to 6.25. This continuation in oversupply is placing downward pressure on prices. The unadjusted citywide benchmark price totaled $428,700 in September. This is nearly one per cent below last month and three per cent below last year’s levels.

Edmonton

All Residential Average Prices Stable, Unit Sales Decrease

All residential average prices increased 0.94% compared to September 2017, Single family home average prices increased 1.71% month over month and increased 0.25% year over year. Duplex/rowhouse average prices are up 0.68% compared to September 2017. Condominium average prices decreased 1.53% month over month and decreased 4.28% year over year. Unit sales are down across all categories , overall, all residential unit sales showed a decrease of 21.83% month over month and 8.53% decrease year over year. Average days on market increased for all categories. The average for single family homes increased to 61 days for September 2018, two days longer than August 2018 and eight days longer than September 2017. In total, there were 1,225 MLS® System listed properties sold in September 2018, a decrease of 21.83% month over month and an decrease of 8.24% year over year.

Toronto

Finding a Balance Between Supply and Demand

6,455 sales were reported in September 2018 – up 1.9 per cent compared to September 2017.The average selling price for September 2018 sales was up by 2.9 per cent over the same period to $796,786.  The MLS® HPI composite benchmark price was up by two per cent year-over-year.New listings entered into TREB’s MLS® System in September 2018 amounted to 15,920 – down by 3.1 per cent compared to September 2017.  With sales up year-over-year and new listings down, market conditions became tighter.  Many buyers may have found it more difficult to find a home meeting their needs.

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