Kelowna Real Estate Market Sales Summary Nov 2023
1. Other – this figure includes Duplexes, Triplexes, Fourplexes and Manufactured Homes and no longer includes lots.
2. The Average Price shown is the latest Median Sales Price Kelowna area Residential Stats for November 2023.
3. Days on Market is the median days on the market figure.
Full Kelowna Real Estate Market Report November 2023
- Sales Numbers – the Kelowna Real Estate Market saw a 7.3% fall in sales last month, & down 3.8% against this time last year.
- Residential Median Selling prices – improved for Single-Family Homes but fell for Townhomes and Condos.
- Inventory numbers – down in Single-Family and up for Townhomes and Condos.
- Sales to active listings ratios – all sectors are Buyers’ Markets.
- Days on Market – all sectors took longer to sell last month.
Overall, the Kelowna Real Estate market was a more ‘normal’ November. That being said, I did find myself in multiple offers recently, and I have heard of other agents experiencing the same scenario, so the market is still moving in the more ‘affordable’ property sectors.
Real Estate headlines, last month, were dominated by the various Provincial Government legislation changes coming soon.
This will significantly impact those doing short-term rentals in BC, and the extension of the Speculation and Vacancy tax will now include areas like Lake Country, Vernon, and Peachland.
Many investors are anxiously waiting to read the ‘fine print’ of the recent provincial government announcements & what they will mean for their short-term rentals. Then they will be deciding whether to hold & rent them long term or sell.
The recent very well-attended City of Kelowna public meeting gave some insight into the level of public feeling on this subject. Some were highly supportive, especially younger people looking to get onto the property ladder for the first time, and those who had experienced noise and parking issues from certain Air BnB style properties owned by absentee landlords.
Others were dismayed with the level of information currently being received, as it is not clear, which properties may be affected, and others were citing the nightmare scenarios they have experienced with the Residential Tenancy Branch when dealing with issues with long-term rentals, and vowed never to go back to long-term rentals.
As short-term rentals will now cover rentals less than 90 days, many cited the unintended consequences. For example, Doctors and Nurses will no longer have the option to rent for short residencies at local medical institutions when they are working on short-term contracts.
The City of Kelowna has decided to delay their decision on how to move forward until the Province makes their plans clearer, as this will supersede any local rules and regulations.
Kelowna Real Estate Sales November 2023
Compared to Last Month – Single-family home sales maintained their level, with Condo and Townhome sales falling, after the previous month’s uptick.
Compared to last year – not surprisingly sales numbers were down compared to last year’s, except for Townhomes which were modestly higher.
Yet again total sales were at their lowest number in the last 10 years.
Kelowna Real Estate Sales to Active Listings November 2023
Single-family sales to Active listings – were lower in all sectors and are all firmly in buyer’s market territory.
Kelowna Real Estate Inventory November 2023
Single-family home inventory is currently standing at 1260, down 9.7% from 1395 units last month.
Condos – are currently at 587 units, up 4.8% from 560 units last month.
Townhomes are currently at 337 units, up 3.1%% from 327 units last month.
We have continued to see inventory levels swing up and down. The fact that these numbers do not appear to be rising too rapidly should help to keep prices relatively stable, but that doesn’t account for some ‘motivated Sellers’ who had to / chose to Sell, which may resulted in a lower than ‘market value’ sale price.
(For ongoing reference, the peak, for Single Family Homes in the last 10 years was 1,699 units in June 2013, and the lowest was 519 units in June 2021, during the Covid Pandemic.)
Spotlight on Single-Family Homes November 2023
|Months of Inventory
Looking at the numbers compared to last month, it appears that sales in the price ranges between $800,000 and $1.25 million have increased the most. This has led to a reduction in the months of inventory in the $1 million to 1.25 million range which is welcome news for some Sellers.
Interestingly, there were 10 sales over $2 million, which is a welcome boost for the luxury market, as that sector has been struggling recently.
My Real Estate Market Thoughts December 2023
1. Interest Rates – the next Bank of Canada announcement is due on December 6, 2023, and it is widely thought that they will continue to hold interest rates at their current level, as previous rate rises appear to be having the desired effect on the economy.
2. Prices – I am expecting prices to remain fairly steady, however, some Sellers may feel under pressure to sell, particularly if they have pressing reasons to move on. We are also still seeing some overpricing, as Sellers struggle to adjust to the current market. These Sellers will need to come to terms with either having to wait for the market to begin recovery, which may be 6 to 9 months away, or adjust their prices to reflect current market conditions.
3. Inventory – I do not believe current inventory levels will have too much of a negative effect on pricing.
4. Change in BC Short-Term Rental Rules – last month the BC Government decided to crack down on the number of Short-Term Rentals in BC, in a bid to ease the BC housing crisis. Read more details here
The City of Kelowna are in the middle of reviewing their Short-Term Rental policy and following last months Public Hearing they have decided to delay matters pending more details on the BC Provincial Government’s plans, which are due in the next week or so.
At this stage, it is too soon to speculate on the effects of this legislation, but it is likely to seriously affect this sector of the Market & may cause some Investors to sell earlier than planned, leading to an additional temporary oversupply of inventory. WATCH!
5. Provincial Government Speculation Tax Update – 13 More Municipalities are to be included in the Speculation and Vacancy Tax area. Read the news release here
In our area this will include Vernon, Coldstream, Penticton, Summerland, Lake Country, Peachland, Salmon Arm, and Kamloops.
This is likely to affect some second-home buyers plans to purchase in our area, but will not necessarily affect Kelowna and West Kelowna as we already have those taxes in place.
6. Federal Mini Budget November 2023 – Short-Term Rental Expenses
The Fall Economic Statement included a Federal policy announcement on short-term rentals. They intend to deny income tax deductions for expenses incurred to earn short-term rental income in provinces or municipalities that have prohibited short-term rentals or for Operators who have not complied with local licensing or permits.
This is more of a ‘note’, rather than any effect that it is likely to have on pricing and markets in the coming months.
Message to Sellers – Selling your home in a Real Estate Market Downturn.
Here is a reminder of some of my tips for selling in a weaker Real Estate Market.
- Know your Market – it’s a Buyer’s Market out there, right now. Make sure you review a comprehensive market analysis of listings and sales in your area with your Agent. What are Buyers looking for at the moment? Where are the Buyers coming from?
- Expect to negotiate – Buyers are both hesitant to jump into the market right now and when they do they expect to negotiate, so try not to get insulted by their first offer!
- Does your home show at its best? You need to be honest here as Buyers will be! Is your property clean and clutter-free? Cluttered rooms, Toys, Cleanliness, Pet Hair and Odours are all examples that can cost you a sale. Make sure your home has curb appeal, 1st impressions are important. Now is not the time for peeling paintwork and scuffed walls. Buyers are currently not looking for ‘project homes’ they need to be ‘move-in’ ready. So dated kitchens & bathrooms, old windows, old hot water tanks and roofs at the end of life will be a deterrent.
- Price your home aggressively – If you overprice your home now, you are highly likely to be chasing the market down. It is essential to price your home at ‘now pricing’ and not pricing from earlier in 2023, especially if there is lots of competition for your type of property, you need to be one of the cheapest or the cheapest to ensure you are in the mix. If you must set your price higher, make sure you have a game plan of when and how much to reduce.
- Make your home available to suit Buyers – wherever possible try not to put any constraints on showings.
- Be Flexible on terms – such as dates for closing and inclusions.
- Offer incentives to Buyers – such as we’ll pay your legal fees, offering 6 months of strata fees with Strata properties, or a decorating or flooring allowance.
- Play to your Strengths – make sure Buyers are aware of all the features of your home, especially if they aren’t obvious during the initial viewing. If you have a view, don’t hide it by leaving the blinds closed during showings. Do you have a great location? Consider leaving a note to Buyers about why you have loved living here.
- Do I really want/need to sell now? If you aren’t prepared to go the ‘extra mile’ to sell your home, now may not be the right time to list.
- Spread the Word – While your Agent will have a comprehensive Marketing plan for your home, don’t be afraid to share your listing with Friends, Family and on Social Media.
Message For Buyers
- It’s a Buyer’s Market – You have the upper hand right now, and as there is less competition you can afford to take your time in making a decision. But don’t wait too long! When interest rates start to fall again (which could be sometime in the Spring), expect some pent-up demand in the Market. Think short-term pain now is more likely to lead to long-term gain.
- Should I buy now or wait until 2024? Don’t try to time the market, as this can lead to disappointment and frustration. If the right home comes along, don’t wait to see if the price is going to change, as someone may get in first! But, you need to be willing to stay in your new property for 3-5 years.
- Be prepared to negotiate – put forward your reasons why, i.e. comparable sales and be prepared to share your story with the Seller to gain some connection.
- Qualifying for your Mortgage – Make sure you are pre-approved before looking at properties. As we are on the edge of a recession, consider your current job security. Make sure you DO NOT take on any new Vehicle Loans or other debt during the home-buying process, as this can affect your mortgage qualification.
British Columbia Real Estate Stats Release November 2023 Link here
Where did the Kelowna Real Estate Buyers come from in October 2023 Read here
My 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 & 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 Buy & Sell properties in the area. She feels passionate that clients should be well-informed, in making their Real Estate decisions, and writes regular blog posts about the local Kelowna Real Estate Market.