Kelowna Real Estate Market Update

Kelowna Real Estate News

May 2020

As expected, May sales continued to be significantly impacted by COVID 19 in all segments of the market.

Although all segments of the market are still technically in a buyers market, it stillfeels more like the market is “on hold”.  With fewer homes for sale, the buyers that are actively searching are having a hard time finding what they’re looking for right now.
However, the market is slowly feeling more and more active.  I was in a 4-way multiple offer yesterday on a $900,000 property in Lake Country; not something you typically see in a slow market.

Forecasts are all over the map.

Postive Forecasts:
– BC Real Estate Association’s latest forecast released today, is expecting “home prices remaining relatively firm in 2020. We are forecasting the provincial MLS® average price to finish the year up 1.8 per cent and to increase a further 5.6 per cent in 2021.”
– Bloomberg still thinks real estate is good for Canadians
– REMAX doesn’t see a big drop in prices on the horizon
– CMHC “competitor” Genworth is not following CMHC with rule tightening for July 1.

Negative Forecasts:
– CMHC forecasts prices will adjust 9-18% across Canada. However our local CMHC rep tells me this is heavily weighted to Alberta and Saskatchewan and that BC is in the best position of all provinces.
– CMHC has also announced tightened rules for those putting down less than 20% (However, only 15% of 2019 buyers in Central Okanagan put down less than 20%).
BC Unemployment is 13.7% and is especially high with the younger population of workers.

Single Family Home prices are continuing to hold steady. We are seeing more price reductions, but sales are also climbing, and currently trending towards the 10-year average for June. Listings are still way down, but the pace is starting to pick up.April’s new listings were down 47%, where May’s new listings were only down 28% compared to 2019.

Townhome prices are also holding quite steady through all of this so far. Listings are lower than 2019, but significantly higher than 2016-2018 for May, likely due to all of the new construction that happened. We are starting to see most of the RU7 4-plexes downtown being purchased or dedicated to rentals.

Apartment/Condos continue to be impacted most of all segments. Sales are still down over 50%, prices are starting to slip as well. Again, the good news is that listings are still in check, and are 20% under the 10 year average.

Major Cities Report

Victoria

Victoria real estate activity picks up as restrictions ease

A total of 457 properties sold in the Victoria Real Estate Board region this May, 46.1 per cent fewer than the 848 properties sold in May 2019 but 59.2 per cent more than the previous month of April 2020. Sales of condominiums were down 55.7 per cent from May 2019 with 108 units sold. Sales of single family homes were down 42.9 per cent from May 2019 with 254 sold.

“Our market continues to respond to the current health crisis,” says Victoria Real Estate Board President Sandi-Jo Ayers. “Activity in real estate right now echoes the activity in our broader community – as restrictions gradually begin to lift – so too have our sales and listings numbers. Of course, like any industry, we do not expect a sudden shift back to any kind of normal.”

There were 2,544 active listings for sale at the end of May 2020, 15.7 percent fewer properties than the total available at the end of May 2019 but a 10.4 per cent increase from the 2,305 active listings for sale at the end of April 2020.
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Vancouver

Home prices remain steady, buyers and sellers become more comfortable operating in today’s market

Metro Vancouver* home prices have remained steady since provincial health officials implemented physical distancing requirements in March.
The Real Estate Board of Greater Vancouver (REBGV) reports that the MLS® Home Price Index1 composite benchmark price for all residential properties in Metro Vancouver today is $1,028,400. This is virtually unchanged from April 2020, a 1.4% increase over the last three months, and a 2.9% increase compared to May 2019.

“Home prices have been stable during the COVID-19 period. While we’re seeing a variety of long-term projections for the market, it’s critical to understand the facts and trends as they emerge.”

Colette Gerber, REBGV Chair Residential home sales in the region totalled 1,485 in May 2020, a 43.7% decrease from the 2,638 sales recorded in May 2019 and a 33.9% increase from the 1,109 homes sold in April 2020. Last month’s sales were 54.4% below the 10-year May sales average.
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Calgary

COVID-19’s impact on Calgary housing market continues

Housing market activity in May remained slow, but sales exceeded the lows from April, which saw less than 600 sales in Calgary.
May sales totalled 1,080 units, a 44 % decline from last year’s figures.

“The initial shock of COVID-19 and social distancing measure is starting to ease. This is bringing some buyers and sellers back to the market. However, this market continues to remain far from normal and prices are trending down,” said CREB® chief economist Ann-Marie Lurie.

In the higher price ranges the drop in inventory has not been enough compared to the drop in sales. Additionally, the months of supply is far higher than the already elevated levels seen during the past five years.
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Edmonton

Residential Unit Sales Up 54.27% from last month.

Total residential unit sales in the Edmonton Census Metropolitan Area (CMA) real estate market for May 2020 decreased 41.51% compared to May 2019 and increased 54.27% from April 2020. The number of new residential listings is down year over year, decreasing 20.88% and new residential listings are up month over month, increasing 58.83%. Overall inventory in the Edmonton CMA fell 18.63% from May of last year and increased 7.22% from April 2020.

For the month of May, single family home unit sales are down 38.70% from May 2019 and up 60.08% from April 2020. Condo unit sales decreased 54.47% from May 2019 and increased 28.14% from April 2020.
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Toronto

May 2020 sales increased by 55.2% compared to April 2020.

Greater Toronto Area REALTORS® reported 4,606 sales through TRREB’s MLS® System in May 2020. This result was down by 53.7% compared to May 2019. While the number of sales was down substantially on a year-over-year basis due to the continued impact of COVID-19, the decline was less than the 67.1% year-over-year decline reported for April 2020.

On a month-over-month basis, actual and seasonally adjusted May sales were up substantially compared to April. Actual May 2020 sales increased by 55.2% compared to April 2020. After accounting for the regular seasonal increase that is experienced each year between April and May, seasonally adjusted sales were up by 53.2% month-over-month.

The number of new listings entered into TRREB’s MLS® System in May was down by a similar annual rate to that of sales, dipping by 53.1% to 9,104. On a month-over-month basis, actual new listings were up by 47.5%.
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Detached Single Family Home

Under $425,000!

2 bed, 1.5 bath, in 19+ Community.
11-6400 Spencer Road – $424,800

This lovely 19+ age-restricted 2 bed, 1.5 bath rancher home is just outside of town and has recently been updated. There is a bright and open floor plan with laminate and tile throughout. It features a LARGE window with tons of natural light in generous-sized living area and a large master bedroom with ROOM FOR KING BED. All bathrooms have been updated, there is in-suite laundry, central/forced air and fixtures throughout the house have been updated. There is a HUGE patio along with well-kept landscaping, a garden and a your own beautiful FENCED in yard. The pride of ownership shows throughout this well cared for neighbourhood. This quiet and 19+ community has lots to offer! Including: serene views with BEAUTIFUL sunsets, it is close proximity to the airport, has nearby golf course, quick access to Mill Creek Park for hiking and includes LOW strata fees of only $136/mo. There is also RV parking available and a side stall which allows for additional guest parking. Up to 2 pets are allowed. Each unit has their own septic fields. visit us here!