Wednesday, 1 January 2014

Kelowna Real Estate Market News January 2014

Hi All,

Happy New Year! Before writing this post today, I decided to read my report on the Kelowna Real Estate Market from this time last year.

In it, I predicted that we would see an in increase in sales numbers, which we did, but I also predicted that we would see bigger numbers of 'out of town' buyers return to the market, when actually the market remained largely dominated by local buyers.

Prices did seem to stay flat, and in some cases prices remains 'soft', as we continued to have  an over- supply of properties, in relation to Buyer numbers,which meant we were working in a Buyers Market, in most sectors.

  Okanagan Real Estate Sales December 2013


Date
Total
S/Fm
Strata
Lots
Manuf
Dec  - 13
232 129 78 22 3
 Nov  - 13
314
185
108
7
14
Oct  - 13
377
193
136
23
25
Sept - 13
391
210
126
28
27
 Dec - 12
176 89 69 12 6

 As per normal, sales have fallen off as we have gone into winter, but residential sales were up 31.8% on this time last year, which is another positive for our market. Single Family home numbers were up 44.9%, but the biggest increase was in lot sales, which were up 83.3%. This is welcome news, as lot sales have continued to struggle.

  Months of Inventory in Key Sectors of the Kelowna Market December 2013
Area Criteria
Sold
ForSale
Months Inventory
Trend*
Buyers /
Seller Market
S/Fam Homes W Kel /Kelowna $300k -$500k
60 311 5.18 Rising Buyers
S/Fam Homes Nr Hospital $300k-$450k
2 10 5 Rising Balanced
2 Bed Condos UBCO $180k-$320K 7 49 7 Rising Buyers
1/2 Bed Condos Downtown $200k-$500k
4 62 15.5 Falling Buyers
Town Homes W Kel Kelowna Area $240k-$500K
20 204 10.2 Rising Buyers


While most of these figures do show the months of inventory rising, this is to be expected at this time of year, so don't read too much into this unless it becomes a trend as we head in to spring. The positive for Sellers of Single Family Homes, in particular, is that the market is very close to being balanced.

 Our Kelowna Real Estate Forecast for 2014.

With the level of Buyer activity Tanis and I have been experiencing during the last few months, we do sense that we are going to continue to see sales numbers rise this year.

Recently we have seen Rental Vacancy Rates start to fall, in the Kelowna area, which will be of interest to potential investors, which may tempt them into the market in bigger numbers. We are also reading regularly that interest rates should be fairly stable this year, so that is good for Buyers.

One of the negatives has been the increasing number of deals we have seen fail, as the Buyer cannot obtain financing. For those of you who are going to be buying this year and need financing, make sure you talk to your Financial Institution or Mortgage Broker well in advance of starting your search, particularly if you are Self Employed or a First Time Buyer.

So the number one question we know you want answered is ' where are prices going in Kelowna this year'! If inventory continues to fall, we should start to see pricing firm up, particularly in the affordable, Single Family Home market. We think Condos still have a little way to go before we see prices rise, so expect pricing to  remain competitive and flat.

Good presentation and correct pricing will continue to be essential for Sellers. Lot numbers are still high, so we think we have quite a way to go yet, before prices firm up in this sector.

As always, if you have any questions about your property, or would like assistance in buying or selling a property in the Central Okanagan area, we would love to help you, so give us a call or send us a note.

Kind Regards

Trish and Tanis

Tel 250 864 1707  & 250 215 2121

Email trishandTanis@gmail;.com

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