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Kelowna Real Estate Market 2024 Sales Numbers for July
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 July 2024.
3. Days on Market is the median days on the market figure.
Kelowna Real Estate Market Report – in detail
- Sales Performance: Last month, the Kelowna Real Estate market maintained stability in total residential sales, with condo sales emerging as a positive highlight
- Pricing Trends: Median sales prices fell for Single-Family Homes and Town homes, and improved modestly for Condos last month.
- Inventory Levels: Inventory continued to increase for Single-Family homes and Townhomes but fell for Condos.
- Market Type: The sales-to-active-listings ratio continued to decline for single-family homes and townhomes, whereas it improved for condos. All sectors remained firmly in buyer’s market territory.
- Selling Time: Single-family homes sold at a similar time, condos sold more quickly, and townhomes sold at a slower pace last month.
- Market Outlook: Last month’s 0.25% decrease in the Bank of Canada rate was a welcome development, yet the market remained challenging for many Sellers. Those fortunate enough to receive offers often faced low bids, creating a dilemma about whether to sell now or wait. For buyers with the financial means to purchase, a good selection is generally available. However, affordable family homes, especially those with an additional suite, continue to be highly sought after.
Kelowna Real Estate Sales July 2024
Compared to Last Month – Sales were down for single-family homes, up for Condos and Townhomes held steady.
Compared to last year – Remained well down in all major sectors.
Kelowna Real Estate Sales to Active Listings July 2024
Sales to Active listings – declined for Single-Family Homes & Townhomes and improved for Condos, and all remained firmly in buyer’s market territory.
Kelowna Real Estate Inventory July 2024
Single-family home inventory is currently at 1,902, up by 0.7% from 1,889 units last month, (previous 10-year peak being 1,889 units in June 2024). A new 10-year peak for listings.
Condos – stand currently at 786 units, down 1.75% from 800 units last month (10-year peak of 800 units in June 2024).
Townhomes are currently at 461 units, up 1.3% from 455 units last month (10-year peak of 455 units in June 2024). A new 10-year peak for listings.
Spotlight on Single-Family Homes July 2024
| Price Range ($000’s) | Months of Inventory | Current Inventory | July 2024 Sales |
|---|---|---|---|
| $400-$599K | 4.9 | 34 | 7 |
| $600-$799k | 3.9 | 145 | 37 |
| $800-$999k | 4.9 | 305 | 62 |
| $1,000-$1,249k | 9.4 | 328 | 35 |
| $1,250-$1,499k | 22.9 | 298 | 13 |
| $1,500-$1,999K | 19.3 | 328 | 17 |
| $2,000+ | 34.7 | 347 | 10 |
*Current inventory numbers are shown as at August 1, 2024.
The current months of inventory surged in the $1,250,000 to $1,499,000 range, now standing at 22 months. This data clearly highlights that affordability remains a significant challenge for buyers in today’s real estate market.
My thoughts on the Kelowna Real Estate Market for Fall 2024
- Interest Rates and their impact on affordability: Last month, the Bank of Canada reduced interest rates by a modest 0.25%. Realistically, this will be insufficient to ease affordability for most buyers, so I expect subdued market conditions to persist this Fall.
- Demand for Homes with Suites: Kelowna continues to struggle with a lack of affordable housing. Many local families looking to move into single-family homes often need a “mortgage helper” to afford their new residence. This has led to high demand, with limited new supply, making it challenging for first-time buyers and lower-income families to enter the market. I expect pricing for these types of properties to remain stronger.
- Pricing Trends: Sellers are hopeful that prices have stabilized, but realistically, with some motivated sellers, in the market, and higher inventory levels, modest downward pricing pressure is likely to continue, in many sectors this Fall.
- Inventory Levels: These are likely to remain elevated, while subdued sales numbers continue, adding to pricing pressure.
- Government Policies and Tax Changes: Changes in Short-Term rental rules, Selling Tenanted Properties, Capital Gains Taxes, Speculation Tax and other levies have influenced the overall cost & complexity of homeownership, especially for 2nd Homes Owners in the Okanagan and have also caused some Investors to re-evaluate their Real Estate investments. This has and is likely to continue to have the effect of increasing inventory in the Kelowna area over the coming year.
- Buyer Confidence – remains weaker due to a lack of affordability, together with economic and cost of living concerns which are causing many to pause their plans. I expect many Buyers to continue to ‘wait and see’ until the economy and interest rates show greater signs of improvement, which is most likely to be in 2025.
August 2024 Real Estate Advice For Buyers and Sellers
- Sellers: Buyers continue to be very aggressive with their offers, so be prepared. It’s very important to stay the course and negotiate! If you are ‘set’ on your Selling price or you don’t need to move now it may be better to wait until next year to list.
- Buyers: if you can afford it now is a great time to buy. Remember the quote “Marry the house and date the rate”. These higher rates won’t last, but you might not be able to buy for such great value.
Changes to the Residential Tenancy Notice Period
The BC Government announced some welcome changes today to its new Residential Tenancy legislation. Link
From August 21st, 2024:
- Landlords that issue an eviction notice on behalf of a purchaser will only need to provide 3 months notice (down from the original 4 months)
- This ensures it meets standard financing timelines and CMHC requirements for insured mortgages and related programs.
- The timeline to dispute these eviction notices will be 21 days (down from the original 30 days)
This month’s photo – Black Mountain Golf Course, Kelowna.
Information Links
British Columbia Real Estate July 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 19 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.
