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Kelowna Real Estate Market Sales Summary Feb 2024
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 February 2024.
3. Days on Market is the median days on the market figure.
Full Kelowna Real Estate Market Report March 2024
- Sales Performance: Total residential sales increased by 22.4% from the previous month, yet were 11.5% lower than the same period last year.
- Pricing Trends: While condo prices saw a decline, prices for single-family homes and townhomes rose.
- Inventory Levels: There was a rise in inventory across all sectors.
- Market Type: The sales to active listings ratio indicates a buyers’ market in all sectors.
- Selling Time: Selling times increased for single-family homes but decreased for condos and townhomes.
- Market Outlook: February witnessed a slight improvement in residential sales, despite ongoing challenges from high interest rates and low consumer confidence. Showings and online engagements significantly dropped towards the month’s end, affecting even the more affordably priced properties.
Kelowna Real Estate Sales February 2024
Compared to Last Month – Sales were up in all sectors.
Compared to last year – sales numbers were down for Single-Family homes and Condos compared to last year’s, whereas Townhomes were up.
Kelowna Real Estate Sales to Active Listings February 2024
Single-family sales to Active listings – were down from January for Homes and Townhomes, but up for Condos. All remained firmly in buyer’s market territory.
Kelowna Real Estate Inventory February 2024
Single-family home inventory is currently standing at 1,105, up by 10.9% from 996 units last month, and up 20.8% from Feb 2023 (10-year peak being 1,759 units in June 2014).
Condos – are currently at 601 units, up 19.5% from 503 units last month and up 24.2% from Feb 2023 (10-year peak of 755 units in June 2014).
Townhomes are currently at 336 units, up 9.1% from 308 units last month and up 33.9% from Feb 2023. (10-year peak of 444 units in April 2014).
Clearly, inventory is starting to rise again, which is to be expected, as we get ready to head into Spring, but is not too high to be causing downward pricing pressure.
One area that I do feel we need to watch are the downtown condos, where we may see higher inventory numbers due to the provincial legislation changes to the short-term rental rules in May 2024.
Spotlight on Single-Family Homes February 2024
| Price Range ($000’s) | Months of Inventory | Current Inventory | February 2024 Sales |
|---|---|---|---|
| $400-$599K | 14 | 27 | 2 |
| $600-$799k | 4 | 85 | 23 |
| $800-$999k | 5 | 176 | 34 |
| $1,000-$1,249k | 7 | 177 | 25 |
| $1,250-$1,499k | 16 | 191 | 12 |
| $1,500-$1,999K | 24 | 167 | 7 |
| $2,000+ | 80 | 239 | 3 |
With Inventory numbers starting to rise and sales only rising modestly, it is not surprising that the months of inventory continue to rise.
Interestingly the months of inventory for the cheapest properties rose sharply. In looking behind these numbers inventory held relatively steady but sales numbers were halved, so I regard this as a short-term anomaly.
My thoughts on the Kelowna Real Estate Market for Spring 2024
- Interest Rates’ Impact: The market continues to be significantly influenced by interest rates, with affordability posing a considerable challenge for many potential buyers. As of today the Bank of Canada held their current rate.
- Pricing Trends: Stability in pricing is expected to persist. Nevertheless, some sellers are experiencing pressure, leading to price reductions. This pressure is partly due to previously inflated prices, with the winter market showing some signs of overvaluation. Additionally, impending changes to short-term rental regulations in BC could lead to an increase in listings, particularly for downtown Kelowna condos, potentially causing downward price pressure. Conversely, in the segment of affordable single-family homes, valued typically below $1 million, there is an anticipation of increased demand, especially if interest rates begin to decline, which may drive prices upward.
- Inventory Levels: Inventory is gradually increasing, a trend that is anticipated to continue and aligns with the usual spring market. This rise in inventory is positive news for buyers, who have faced limited options in recent times.
- Market Improvement Outlook: While I anticipate a slow market in April, the approaching spring season & the expectation of lower interest rates, should signal increased market activity as we head into May Nonetheless, buyers are expected to maintain their sensitivity to pricing.
Current Advice For Buyers and Sellers
- Sellers: In a market that remains in favor of buyers, sellers need to be strategic in pricing and presenting their properties. Competitive pricing, flexibility in negotiations, and ensuring properties are in prime condition are key to attracting potential buyers.
- Buyers: Buyers currently have the upper hand, with the opportunity to negotiate favorable terms. However, decisive action is recommended, especially for those eyeing the more affordable segments, where competition and prices may rise in the coming months.
This month’s photo – Flying over Kelowna 2024
New Provincial Legislation
BC Flipping Tax
The provincial government plans to impose a 20% tax on profits from selling a home within one year and a reduced tax for sales within two years, covering property and contract assignments.
Exemptions exist for sales due to life events like separation, death, disability, job loss, relocation, changes in household, personal safety, or insolvency, and for contributors to housing supply.
This tax supplements existing federal taxes on investment property sales and the anti-flipping tax on primary residences sold within a year.
Information Links
British Columbia Real Estate Housing Market Q1 Forecast Jan 2024 Link
BC Real Estate Market Report February 2024 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.
