Are Condo Prices Falling?

Kelowna Real Estate News

November 2019

A balanced market is a happy market, unless you’re selling a property in the higher end of the segment, then it’s a tough market.

Single Family Homes continue to hang on to a balanced market and are following close to 2018’s fall market with little change. As is typical with the coming months, we expect the market to slow in December and January. The market over $1 million dollars is still quite slow with only 6.8% of the listings selling. With 77% of the sales taking place under $800,000, this is where all the action is.

Townhomes are in a similar situation with 83% of the sales taking place under $600,000, and only 6.5% of the 123 townhomes available over $600,000 are currently selling. Expensive townhomes are competing with single family homes, and are losing out to them.

Apartment/Condo inventory has climbed just 6% compared to this time last year.  The average price has been a little all over the place this year from low to high.  This is only the 3rd month in 2019 that the average price was less than 2018, so we can’t put too much weight on that going down. Since this time last year, the benchmark price for the average condo has come down 2.5%.  That translates to the average $318,000 condo theoretically being $8,000 less than a year ago. I suspect this will bounce back in the spring.

Major Cities Report

Victoria

Market Impacted By Low Inventory

A total of 619 properties sold in the Victoria region this October, 3.5 per cent more than the 598 properties sold in October 2018 and a 0.5 per cent increase from September 2019. Sales of condominiums were down 1.1 per cent from October 2018 with 178 units sold. Sales of single family homes increased 10 per cent from October 2018 with 318 sold. There were 2,643 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of October 2019, a decrease of 6.4 per cent compared to the month of September, but a 5.3 per cent increase from the 2,510 active listings for sale at the end of October 2018.

Vancouver

Home Buyer Activity Increases

Home sales in the region totalled 2,858 in October 2019, a 45.4 per cent increase from the 1,966 sales recorded in October 2018, and a 22.5 per cent increase from the 2,333 homes sold in September 2019. Last month’s sales were 9.8 per cent above the 10-year October sales average. There were 4,074 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in October 2019. This represents a 16.4 per cent decrease compared to the 4,873 homes listed in October 2018 and a 16.3 per cent decrease compared to September 2019 when 4,866 homes were listed.

Calgary

Sales Up From Last Year

Sales activity in October improved by nearly 10 per cent compared to last year, driven mostly by improvements for apartment and attached product. New listings also eased, which helped reduce inventory levels and the oversupply in the market. Despite the move to more balanced conditions, the market remains oversupplied and prices continue to remain below last year’s levels. This is a market where signs of improvement are not consistent across all product types and price ranges. Improvements in sales are occurring in the lower price ranges across all product types. This is not yet translating into price shifts, as persistently elevated supply levels continue to place downward pressure on prices.

Edmonton

Sales Up, Inventory Down

The Edmonton market for the month of October 2019 increased 8.10% compared to October 2018 and decreased 3.82% from September 2019. The number of new residential listings is down, dropping 5.92% from October 2018. Overall inventory in the Edmonton CMA fell 9.26% from October of last year. Single family home unit sales are up 3.85% and condo unit sales increased 5.30% from the same period of time last year. All residential average prices are down slightly at $353,546, a 2.44% decrease from October 2018, and are virtually unchanged from September 2019.

Toronto

Sales Are Up On A Year-Over-Year Basis

There were 8,491 residential sales through TREB’s MLS® System in October 2019. This result represented a 14 per cent increase compared to 7,448 sales reported in October 2018. GTA-wide, sales were up on a year-over-year basis for all major home types. The trend of annual growth in sales versus annual decline in new listings continued in October 2019, with new listings down by 9.6 per cent compared to October 2018. The resulting tighter market conditions compared to a year ago resulted in positive annual rates of price growth across all major market segments, from a GTA-wide perspective.

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