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Kelowna Real Estate Market 2024 Sales Numbers for May
Market Dynamics: Price and Inventory
Notes -:
1. Other – this figure includes Duplexes, Triplexes, Fourplexes and Manufactured Homes and not lots.
2. The Average Price shown is the latest Median Sales Price Kelowna area Residential Stats for May 2024.
3. Days on Market is the median days on the market figure.
Kelowna Real Estate Market Report – in detail
- Sales Performance: Kelowna Real Estate Market total residential sales increased by 6.5% from the previous month, & 24.9% lower than in May last year. Disappointing given we are normally in a busy Spring Market.
- Pricing Trends: Median prices held steady for Single-Family homes, fell for Condos & rose modestly for Town Homes.
- Inventory Levels: Inventory increased in all sectors last month, and are now approaching or exceeding 10-year highs.
- Market Type: Sales to active listings ratio declined for Single-Family but improved for Condos & Town Homes last month and still indicates a buyers’ market in all sectors.
- Selling Time: Single-family & Condo properties sold modestly slower, while Townhomes sold slightly quicker.
- Market Outlook: We are continuing to see some multiple offers, but overall the market has remained quite subdued, with some Agents reporting a modest uptick in activity towards the end of the month. It feels like everyone is waiting on next week’s Bank of Canada Interst Rate announcement.
Kelowna Real Estate Sales May 2024
Compared to Last Month – Sales were up again in all major sectors.
Compared to last year – Were well down in all major sectors.
Kelowna Real Estate Sales to Active Listings May 2024
Sales to Active listings – declined for Single-Family Homes, & improved for Condos & Town Homes, and all remained firmly in buyer’s market territory.
Kelowna Real Estate Inventory May 2024
Single-family home inventory is currently at 1,747, up by 10.9% from 1,575 units last month, and up 45.8% from May 2023 of 1174 units, (10-year peak being 1,759 units in June 2014).
Condos – stand currently at 771 units, up 6.6% from 723 units last month and up 56.7% from May 2023 492 units (10-year peak of 755 units in June 2014). A new 10-year peak for listings.
Townhomes are currently at 418 units, up 8.6% from 385 units last month and up 48.2% from May 2023 to 282 units. (10-year peak of 444 units in April 2014).
Our inventory numbers are now close to their 10-year peak, so if sales numbers do not improve soon is likely to cause downward pricing pressure.
Spotlight on Single-Family Homes May 2024
| Price Range ($000’s) | Months of Inventory | Current Inventory | May 2024 Sales |
|---|---|---|---|
| $400-$599K | 5 | 33 | 7 |
| $600-$799k | 4 | 122 | 32 |
| $800-$999k | 5 | 286 | 53 |
| $1,000-$1,249k | 6 | 318 | 52 |
| $1,250-$1,499k | 18 | 286 | 16 |
| $1,500-$1,999K | 20 | 275 | 14 |
| $2,000+ | 32 | 322 | 10 |
*Current inventory numbers are shown as at June 1, 2024.
The current months of inventory are holding steady or improving, with the $1,250k to $1,499k increasing slightly from 16 months to 18 months supply, highlighting the affordability strains in this sector of the market.
My thoughts on the Kelowna Real Estate Market for May 2024
- Interest Rates and their impact on affordability: The Bank of Canada’s is widely expected to reduce their rates this week. I suspect we will see a modest 0.25% drop, which will do very little to ease affordability in the Kelowna Real Estate market. A Financial Post article reported a recent BMO poll by Ipsos showed— 72 per cent of Canadians won’t buy until rates come down, indicating some pent-up demand out there. So, I am expecting this news to have some positive effect on the market.
- Pricing Trends: Listing prices are becoming more realistic, but even in multiple offers it is rare to see sales over the list price.
- Inventory Levels: Inventory levels continue to rise, and spring sales are quite weak, this is a warning sign, which may lead to downward pricing pressure. In the University area, for example, I am starting to see price reductions on Condo Listings.
- Impact of New BC Short-Term Rental Policy: As of May 1st, 2024, the new BC short-term rental regulations took effect. Some Owners have decided to sell while others are waiting to see whether any of the pending lawsuits against the Province can gain traction before they decide to sell.
- Effect of the Struggling Okanagan Economy: Continuing economic challenges in the Okanagan region, including job market fluctuations and sector-specific downturns, are influencing the real estate market and dampening Buyer sentiment.
Spring 2024 Real Estate Advice For Buyers and Sellers
- Sellers: The correct list price remains the most important factor in Selling homes right now. The percentage chance of selling your home in the current ‘Buyers Market’ is much lower than normal, so now is not the time to be over-aggressive with your list price.
- Buyers: With Mortgage Rate Growth being at its slowest level in 20 years, according to a recent CMHC Report , competition, by Banks, for your Mortgage business may be greater than normal & discounts on posted Mortgage Rates may be possible. We are also seeing multiple offers again this month on well-priced & affordable properties, especially if they have suites or suite potential. It is still a buyer’s market, and it’s ok to negotiate, so don’t be afraid to put pen to paper and try an offer.
This month’s photo – Lake Okanagan view from McKinley Landing.
Information Links
British Columbia Real Estate May Provincial Market Report 2024 Link
Trish’s current Kelowna Listings Here
About The Author
Trish Cenci is a Residential Real Estate Agent working in Kelowna & the surrounding Okanagan Valley. Trish was born & raised in the UK, has a background in Finance and Banking, & emigrated to Kelowna in 2005. For the last 18 years, she has been building a successful Real Estate business and has established a reputation for being a highly respected & professional local Agent helping many Clients over the years and selling properties in the area. She feels passionately that clients should be well-informed, in making their Real Estate decisions, and writes regular blog posts about the local Kelowna Real Estate Market.
