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Kelowna Real Estate Market Sales Summary Dec 2023
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 December 2023.
3. Days on Market is the median days on the market figure.
Full Kelowna Real Estate Market Report December 2023
- Sales Numbers – the Kelowna Real Estate Market saw a 26.1% fall in total residential sales last month, & down 4.6% against the same time last year.
- Residential Median Selling prices – improved for Condos but fell for Single-Family homes and Townhomes.
- Inventory numbers – down in all sectors.
- Sales to active listings ratios – all sectors are Buyers’ Markets.
- Days on Market – Single-family homes and townhomes took longer to sell and condos took slightly less time last month.
December 2023 Residential Real Estate Sales hit a 10-year low as interest rate levels and weak consumer confidence continued to affect the Kelowna Real Estate Market.
Generally, the number of showings was very slow during the last month, as Buyers seemed to focus their attention on Christmas rather than moving.
Looking at the previous month’s Buyers Survey results, there were more move-up buyers, while first-time and investor buyers were less active in the market. 57% were local buyers, while there were slightly less from the Lower Mainland and Alberta.
Kelowna Real Estate Sales December 2023
Compared to Last Month – Sales were subdued in all sectors.
Compared to last year – sales numbers were down compared to last year’s, with Townhomes being the most affected.
Yet again total sales were at their lowest number in the last 10 years.
Kelowna Real Estate Sales to Active Listings December 2023
Single-family sales to Active listings – fell again in all sectors and remained firmly in buyer’s market territory.
Kelowna Real Estate Inventory December 2023
Single-family home inventory is currently standing at 1,021, down 19.2% from 1,264 units last month. The peak this year was 1412 units, with the 10-year peak being 1,759 units in June 2014.
Condos – are currently at 502 units, down 14.5% from 587 units last month. (10-year peak of 755 units in June 2014).
Townhomes are currently at 301 units, down 9.9%% from 334 units last month. (10-year peak of 444 units in April 2014).
This seems to be good news, as inventory is not rising at the moment, which would potentially add additional pricing pressure.
Spotlight on Single-Family Homes December 2023
| *Price Range
in 000’s |
$400- $599K |
$600- $799k |
$800- $999k |
$1,000- $1,249k |
$1,250- $1,499k |
$1,500- $1,999K |
$2,000 + |
| Months of Inventory |
6.25 |
4.8 |
5.9 |
8.5 |
20.1 |
19.75 |
55.5 |
| Inventory |
25 |
86 |
172 |
153 |
161 |
158 |
222 |
| Sales |
4 |
18 |
29 |
18 |
8 |
8 |
4 |
Inventory numbers fell in all Single-Family homes sectors last month. It is no surprise that the busiest sector was in the $800,000-$999,000 range, as this seems to be the most affordable level of home for the average, Kelowna real estate buyer.
I expect this trend to continue next year, and if Buyers wish to reach beyond this price point, many will need the boost of a ‘mortgage-helper’ suite.
My Predictions for 2024
1. Interest Rates – with inflation now coming under control, and as house prices and rental prices continue to be more subdued, I do not believe the Bank of Canada will need to make any further interest rate rises, and at the moment I am expecting them to start modest reductions in the late spring.
2. Prices – to remain fairly steady. However, we need to watch for the effects of the changes in short-term rental legislation in BC, as this may cause the number of listings, (especially Condos) to rise, which could cause downward pricing pressure. In the affordable single-family home categories, typically under $1m, I am expecting the most demand, and we are likely to see some pent-up demand, especially when interest rates start to fall, so I am expecting upward price pressure there.
3. Inventory – as per normal I expect Inventory levels to rise again as we head into spring. I anticipate that the inventory of Townhomes and affordable Homes will be tight, especially if they are in a good school catchment area.
4. Fixer-Upper Homes v Move-In Ready – the demand for move-in ready homes is likely to be greater than fixer-upper’s. Buyers are likely to put all of their efforts into making a purchase and will not have leftover funds to undertake reno’s. The possibility of adding a suite or having a suite in place could also be more attractive to some Buyers.
5. Building New Homes – if you’re planning to buy and build in the next year or so, the price of trades is going to rise. We have nearly 300 homes to rebuild following the wildfires last summer, so trades and building supplies are likely to be in greater demand.
6. When will the Market Improve? Expect the next three months to be slow, and, hopefully, as we head into spring, there will be more positive talk of interest rates coming down, which should then stimulate a steady increase in demand. Buyers are, however, likely to remain price sensitive.
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 is firmly a Buyer’s Market out there. 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 Spring 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? Is the home able to be suited? 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, if you are looking at the more affordable end of the market, your window is during the next six months, as I expect prices to rise.
- 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. But if you find your dream home and you plan to stay there for a while, don’t miss out over a few thousand dollars, if you can afford it.
- 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.
Information Links
British Columbia Real Estate Mortgage Forecast for 2024 Link
BC Real Estate Market Report December 2023 Link
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 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.
