Table of Contents
- The Current State of the BC Real Estate Market
- Forecast for BC Real Estate 2023
- Kelowna Real Estate Sales & Pricing & Forecast Q1 2023
- Further Links
The BC Real Estate Association (BCREA) has published its latest BC Housing Forecast this week, which I will summarise here, and highlight its implications for the Kelowna Real Estate Market.
- Pent-up demand and household savings fuelled the BC Real Estate market in 2020 & 2021.
- The Real Estate Market has hit a period of uncertainty due to the threat of Recession & the fastest rise in Bank of Canada interest rates since the 1990s, & which has had an immediate impact.
- Overall Home sales in BC were at a long-term average in 2022, but since the peak (which was March 2022 in Kelowna), the Market has rapidly hit the brakes, as a result of these interest rate changes.
- Sales are currently trending at rates 25% below normal.
- BCREA are predicting home sales will remain slow during 2023, as Buyers wrestle with higher mortgage rates & the impacts of a slowing economy.
- The housing market typically tends to lead the business cycle.
- Recession tends to signal the start of a Housing recovery & the following year sees a strong bounce back as there will be pent-up demand and home budgets ease as Mortgage Rates start to fall.
- Sales are forecasted to be low this year at 75,150 units (down 7.1%) before rising to 93,025 units up (23.8%) next year.
- While Real Estate Inventory is rising, overall levels remain low.
- The abrupt shift in Market conditions saw prices fall during last year, but are now starting to stabilise.
- MLS® average prices to trend relatively flat this year, so year-over-year comparisons will register negative for much of 2023. This will show up as negative annual price growth during 2023.
- Monthly price recovery is expected later in the year.
This is how BCREA predicts the Market will be in Kelowna and the Central Okanagan area Real Estate Market.
|Unit Sales||Average MLS® Price ($)|
Source: BCREA Economics.
If you would be interested in obtaining a current valuation of your home in Kelowna and the Central Okanagan area, please feel free to contact me and set up a time to meet!
Kelowna Real Estate Agent with Move Kelowna Real Estate Team
Coldwell Banker Horizon Realty
BCREA First Quarter Housing Report 2023 – BC Q1 2023 Full Housing Report
Trish’s February 2023 Kelowna Real Estate Market Report- Feb 2023 Market Report
Trish’s Specialist Quail Ridge & UBCO Real Estate Market Report Jan 2023. Quail Ridge & UBCO Annual Housing Report Jan 2023