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Kelowna Real Estate Market 2024 Sales Numbers for June
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 a very modest 1.8% from the previous month, & 22.2% lower than in June last year.
- Pricing Trends: Median prices held steady for Single-Family homes, fell for Condos & rose again for Town Homes.
- Inventory Levels: Inventory continued to increase in all sectors last month, as sales failed to keep up with the number of new listings to the market.
- Market Type: Sales to active listings ratio declined for Single-Family and Townhomes, but improved for Condos with all sectors continuing to be Buyers Markets.
- Selling Time: Single-family & Condo properties sold slower, while Townhomes sold at the same pace as last month.
- Market Outlook: It’s a great time for Buyers, as there is generally a good selection of inventory if they can afford it. Homes with a suite have the advantage right now of assisting as Mortgage helpers. Sellers are finding Buyers being aggressive on pricing when they do offer, and overall showings have remained slow.
Kelowna Real Estate Sales June 2024
Compared to Last Month – Sales were up for single-family homes, but down for Condos and Townhomes.
Compared to last year – Were well down in all major sectors.
Kelowna Real Estate Sales to Active Listings June 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 June 2024
Single-family home inventory is currently at 1,894, up by 8.3% from 1,749 units last month, (10-year peak being 1,894 units in June 2024). A new 10-year peak for listings.
Condos – stand currently at 800 units, up 3.5% from 773 units last month (10-year peak of 800 units in June 2024). A new 10-year peak for listings.
Townhomes are currently at 454 units, up 8.6% from 418 units last month (10-year peak of 454 units in June 2024). A new 10-year peak for listings.
Spotlight on Single-Family Homes June 2024
| Price Range ($000’s) | Months of Inventory | Current Inventory | June 2024 Sales |
|---|---|---|---|
| $400-$599K | 4.1 | 33 | 8 |
| $600-$799k | 5.3 | 138 | 26 |
| $800-$999k | 5.0 | 323 | 64 |
| $1,000-$1,249k | 8.0 | 326 | 41 |
| $1,250-$1,499k | 14.0 | 306 | 22 |
| $1,500-$1,999K | 18.8 | 263 | 14 |
| $2,000+ | 27 | 351 | 13 |
*Current inventory numbers are shown as at July 4, 2024.
The current months of inventory are starting to deteriorate in the lower price categories, while prices of $1,250k and above have improved.
One interesting point to note is that some Luxury Real Estate Market Agents are reporting more activity and offers on Lakeshore properties recently, indicating that the Buyers have been waiting until the last minute to see if prices would deteriorate. So, we may see some larger sales coming through in the next few weeks.
My thoughts on the Kelowna Real Estate Market for July 2024
- Interest Rates and their impact on affordability: Last month, the Bank of Canada reduced interest rates by a modest 0.25%, sparking some increased activity among buyers. However, recent weaker-than-expected inflation news has introduced uncertainty. As of now, there’s only a 50-50 chance of another rate cut at the end of July 2024.
- Pricing Trends: Prices seem to be stabilising, although with rising inventory I expect to see continued, but modest, downward pricing pressure.
- Inventory Levels: Inventory levels are reaching or exceeding 10-year highs, so as we get towards the end of summer we may see some very ‘motivated sellers’ if sales do not improve in the next 6 weeks or so.
- Impact of New BC Short-Term Rental Policy: As of May 1st, 2024, the new BC short-term rental regulations took effect. There is evidence that some owners are selling, but others are waiting until next year, when hopefully prices improve, and they have chosen to put long-term renters in their properties until next Spring.
- Effect of the Okanagan Economy: The weaker Okanagan region economy continues to influence the real estate market and dampen Buyer sentiment.
- Government Legislation – Recently, the Federal and Provincial Governments have introduced several housing-related laws. While it is designed to help Buyers with affordability, it is making the buying process more complex and sometimes discouraging for potential buyers. Key examples include Short Term Rental policy , BC Home Flipping Tax, Bill 14 Tenancy Statutes Amendment Act see basic details below, Speculation and Vacancy Tax expanded to additional communities in 2025. This will include Vernon, Lake Country and Penticton in our immediate area.
Selling Residential Tenanted Properties – Key Changes Effective July 18, 2024
- Mandatory Use of Landlord Use of New Web Portal:
- Landlords must use this portal to generate Notices to End Tenancy for personal or caretaker use.
- Landlords using the website portal will be required to have a Basic BCeID to access the site.
- The portal will require landlords to provide details about the persons moving into the home. The details of the new occupant of the home will be shared with the tenant.
- While using the website portal, landlords will be given information about the required conditions for ending a tenancy and the penalties associated with ending the tenancy in bad faith.
- They will also be informed about the amount of compensation they will be required to issue to tenants when ending a tenancy.
- Extended Notice Period For Tenants:
- The Two-Month Notice is changing to a Four-Month Notice on July 18, 2024.
- Tenants will have 30 days to dispute Notices to End Tenancy, extended from 15 days.
- Occupancy Requirements:
- The individual moving into the property must occupy it for at least 12 months.
- Landlords found to be ending a tenancy in bad faith could be ordered to pay the displaced tenant 12 months’ rent.
Summer 2024 Real Estate Advice For Buyers and Sellers
- Sellers: There is more competition out there with inventory higher than we have seen for some time. Buyers are struggling with affordability, so they are being aggressive with their offers, so be prepared, and if you really want to move you may need to accept an offer much lower than you were hoping for.
- Buyers: Affordability will remain a challenge until interest rates come down further – see the latest BC Real Estate Association Mortgage forecast June 2024. But be careful if you are trying to time the ‘bottom of the market’, as you may miss out. Interesting article Trying to time the housing market after the rate cut? What experts advise
This month’s photo – Lake Okanagan from Westside Road, West Kelowna.
Information Links
British Columbia Real Estate June 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.
