Kelowna’s Real Estate is Fired Up!

Kelowna Real Estate News

August 2020

Wow, what a month for July! Kelowna broke several records last month. Sales for townhomes and single family homes are up tremendously, with listings staying in check.  The condo/apartment market is currently lagging behind.Single Family Homes
This was the best July in the history of Kelowna for sales with 336 homes selling, that’s over 100 more properties selling than the July 10-year average, and 50% more than last year! We also saw the highest average price ever at $812,000; $30,000 more than the previous record set in mid 2018.
We are seeing multiple offers again and properties selling extremely quickly, but we haven’t seen too many properties selling way over asking or competing offers with no conditions, which can get dangerous. The average sale price is still 3% under asking. With over 30% of the listings selling in a month, we are certainly in a seller’s market right now.

Townhomes
Townhomes also saw a very hot month in July with almost 40% more units selling compared to last year, making it the best July ever. With listing inventory staying in check, and the average price climbing to a new record $550,000, townhomes join single family homes in a strong seller’s market.

Apartments
The “weakest” of the 3 segments, where sales are only 35% higher than the 10-year average. Although we didn’t break any records and saw 10% more units for sale in July 2020 vs 2019, we are still under the 10-year average, so it is not alarming. This segment is holding steady and humming along nicely.

Major Cities Report

Victoria

Victoria real estate market continues to heat up
Sales up 39%

A total of 979 properties sold in the Victoria Real Estate Board region this July, 38.7% more than the 706 properties sold in July 2019 and 21.2% more than the previous month of June 2020. Sales of condominiums were up 11.2% from July 2019 with 239 units sold. Sales of single family homes were up 61.1% from July 2019 with 559 sold.

There were 2,653 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of July 2020, 10% fewer properties than the total available at the end of July 2019 and a 1.7% decrease from the 2,698 active listings for sale at the end of June 2020.

The average active listings for July over the past ten years is 3,767 but our current local inventory is more than a thousand properties less than that.
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Vancouver

Metro Vancouver housing market sees steady summer activity.
Sales up 22%

Home buyer and seller activity in Metro Vancouver* exceeded historical levels in July. The REBGV reports that residential home sales in the region totaled 3,128 in July 2020, a 22.3% increase from the 2,557 sales recorded in July 2019, and a 28% increase from the 2,443 homes sold in June 2020. Last month’s sales were 9.4% above the 10-year July sales average.

There were 5,948 detached, attached and apartment properties newly listed for sale on the MLS® in Metro Vancouver in July 2020. This represents a 28.9% increase compared to the 4,613 homes listed in July 2019 and a 2.8% increase compared to June 2020 when 5,787 homes were listed. The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 12,083, a 15.1% decrease compared to July 2019 (14,240) and a 5.8% increase compared to June 2020 (11,424).

For all property types, the sales-to-active listings ratio for July 2020 is 25.9 %. By property type, the ratio is 25.1% for detached homes, 31.1% for townhomes, and 24.7% for apartments. Generally, analysts say that downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
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Calgary

Detached and semi-detached home sales rise, but economic uncertainty remains
Sales up 12%

With higher sales for both detached and semi-detached product, July sales totals rose above last year’s levels. Despite the improvements in July, year-to-date sales remain 15% lower than last year’s levels.
COVID-19 shutdowns occurred over the traditionally busiest quarter for real estate sales. Some of the recent gains reflect activity that would have occurred in those months shifting into July. Some demand is returning to the market, but so is the supply.

Inventory levels trended up over the previous month, offsetting some of the sales growth.  Higher-density row and apartment products have supply/demand ratios that are well above traditional levels.
Higher-than-typical levels of supply relative to sales for higher-density product also had a more significant impact on prices for those product types. Year-over-year price declines ranged from more than eight per cent for row properties to nearly three per cent for semi-detached and apartment properties.

Tighter market conditions for detached properties supported some upward price trends and year-over-year prices were stable compared to the previous year. However, on a year-to-date basis, detached prices remain nearly one per cent lower than last year’s levels.
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Edmonton

Residential sales up only 5.61% from last month.

Total residential unit sales in the Edmonton Census Metropolitan Area (CMA) real estate market for July 2020 increased 13.58% compared to last year and increased 5.61% from last month. The number of new residential listings is up year over year, increasing 7.56% from last year. New residential listings are down month over month, decreasing 9.84% from last month. Overall inventory in the Edmonton CMA fell 15.52% from July of last year and decreased 3.58% from June 2020.
For the month of July, single family home unit sales are up 9.53% from last year and up 3.91% from last month. Condo unit sales increased 11.01% from last year and increased 6.70% from last month.

All residential average prices are up to $369,805, a 0.68% increase from July 2019, and up 2.67% from June 2020. Single family homes sold for an average of $436,142, a 1.39% year-over-year increase from July 2019, and a 3.06% increase from June 2020. Condominiums sold for an average of $225,138, a 0.97% increase year-over-year, and prices are up 2.41% compared to June 2020.
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Toronto

Sales activity was extremely strong for the first full month of summer.
Sales up 30%

Toronto Regional Real Estate Board President Lisa Patel announces that Greater Toronto Area REALTORS® reported 11,081 sales through TRREB’s MLS® System in July 2020 – a 29.5% increase over July 2019 and a new record for the month of July. On a preliminary seasonally adjusted basis, sales were up by 49.5% compared to June 2020.

Year-over-year sales growth was driven by low-rise home types, particularly in the regions surrounding the City of Toronto. However, condominium apartment sales were also up on an annual basis, including in Toronto. Total new listings were also up strongly on a year-over-year basis by 24.7%, but this annual growth rate was less than that of sales, which means market conditions tightened on average compared to July 2019. In addition, active listings at the end of July were down by 16.3%.

The July 2020 MLS® Home Price Index (HPI) Composite Benchmark was up by 10% compared to July 2019. The overall average selling price was up by 16.9% year-over-year to $943,710. On a preliminary seasonally adjusted basis, the average selling price was up by 5.5% compared to June 2020. Price growth was strongest for low-rise home types, notably within the City of Toronto. Despite more balanced market conditions in the condominium apartment market segment, year-over-year price growth remained in the high single digits.
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