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Quail Ridge & University Real Estate Market September 2024
Welcome to the Q3 2024 Quail Ridge and University District Real Estate Market Report. Whether you’re looking to buy or sell, hopefully, my insights will help you prepare for your next move!
As with many parts of Kelowna, Sellers have struggled to attract Buyers in 2024. The Quail Ridge and University District was certainly affected by aspects of both Federal & Provincial policies & legislation.
The ban on short-term rentals affected prices for Sellers of Pinnacle Point Condos (which were previously zoned to allow short-term rentals), & Single-Family Homes and Townhome sales numbers were affected by the Speculation Tax. (The Quail Ridge Golf Course community has traditionally been a very attractive area for out-of-town Buyers to purchase 2nd homes.)
Higher interest rates also paused some investors’ and UBCO Parents’ buying aspirations. This led to higher-than-average inventory in the Academy Way Condos, which forced Sellers to reduce list prices to attract Buyers.
Single-Family Homes Quail Ridge & University District
Sales: 14 sales year-to-date as of September 30, 2024, compared to 15 sales by September 30, 2023.
Inventory & Months of Inventory: In September 2024 there were 15 units listed compared to 15 in September 2023- holding steady. With only 1 single-family home sale in the area in September 2024, there is currently 14 months’ worth of inventory = Buyer’s Market.
Median days on the market: year-to-date 2024 is 28 days, compared to 38 days for the year 2023. This 10-day improvement is positive, however, some homes did re-list with a refreshed price, which does skew the numbers.
Median sale prices year-over-year, we’ve seen an 11% downward adjustment. The median price for single-family homes in September 2024 stands at $1,020,000, down from the $1,146,550 median price recorded for the year 2023 & reflects the general Kelowna Real Estate market cooldown.
Key successes: 6 of the 14 Sellers had a suite or ‘suite-potential’, which has been an important pre-requisite for many Buyers this year as they struggle with affordability.
Condos Quail Ridge and University District September 2024
Sales: 39 sales year-to-date as of September 30, 2024, compared to 46 sales by September 30, 2023, down 15.2%
Inventory & Months of Inventory: In September 2024 there were 31 units listed compared to 14 in September 2023, and listings peaked in June at 60, which was a 10-year high. With only 1 condo sale in the area in September 2024, there is currently 28 months’ worth of inventory = Buyer’s Market.
Median days on the market: September 2024 was 86 days, compared to 40 days in September 2023. Condos are currently taking more than twice as long to sell, as in 2023.
Median sale prices year-over-year, we’ve seen a 14.9% downward adjustment. The median price for Condos in September 2024 was $430,000, down from the $505,000 median price recorded in September 2023.
Townhomes Quail Ridge and University District September 2024
Sales: 18 sales year-to-date as of September 30, 2024, compared to 25 sales by September 30, 2023, down 28%
Inventory & Months of Inventory: In September 2024 there were 17 units listed compared to 18 in September 2023, so broadly similar. There were 0 Townhomes sold in the area in September 2024, & there is currently 17 months’ worth of inventory = Buyer’s Market.
Median days on the market: September 2024 was 56 days, an improvement from 67 days in September 2023.
Median sale prices year-over-year, we’ve seen a 5.4% downward adjustment. The median price for Townhomes in September 2024 was $694,450, down from the $734,000 median price recorded in September 2023.
Quail Ridge and University District Market Outlook and Factors Affecting It October 2024.
Outlook.
As with most years, I expect the Quail Ridge and University District to go largely into ‘hibernation’ until Spring.
Those who were planning to Buy, from out-of-town, have bought, and so most of the Buyers as we head into winter are likely to be local Buyers.
Factors that will continue to affect the market
Here are some of the key factors that will likely affect real estate buyers’ decisions in the University District Real Estate market over the next six months:
1. Interest Rates: remain one of the most significant factors impacting buyer affordability. At the moment many Buyers are staying on the fence, and my feeling is this is likely to continue until the Spring, when they will have likely seen further cuts from the Bank of Canada.
2. Housing Supply: I expect inventory to remain higher, especially for Condos, but some Sellers may decide to take their properties off the market soon and wait until Spring.
3. Price Trends: Buyers will remain hopeful that prices will fall further, however, I sense that most Sellers are going to ‘ride things out’, with the thought that pent-up demand will kick in next Spring. So I expect prices to remain stable.
4. Economic Conditions: Kelowna’s economy, particularly in sectors like tourism, the wine industry and tech, have all been hit this year, which has generally influenced Buyer confidence, not just in Quail Ridge and the University area, but the whole of the Central Okanagan.
5. Affordability Concerns: With the cost of living rising and home prices already high, affordability is a continuing concern. Buyers continue to look for homes within budget, and many may gravitate towards condos or townhomes instead of single-family homes due to lower price points. Homes with a suite under $1m are the most likely to sell & listings in the more affordable range of each category. There are a number of properties in the Quail Ridge and University area that fall into those categories, so Sellers should stick with it!
6. Government Policy and Regulations: with a Provincial Election coming up, if there is a change in Government this could bring about a rescission of some of the current Short Term Policy, which would potentially improve the values of some Quail Ridge Condos.
7. Seasonal Market Activity: Traditionally, the University District Real Estate Market slows down in the winter months, but the spring tends to bring a wave of new listings and activity. I expect this to happen again this year.
Conclusion.
2024 has undoubtedly been a challenging year for all types of listings, both in the University District and the Kelowna Real Estate Market as a whole.
With a higher-than-average number of condos for sale in Academy Way and certain units at Pinnacle Pointe taking time to recover from some localised fire damage in the summer of 2022, the market has faced unique pressures.
On top of that, the new Provincial Short-Term Rental Policy, which came into force in May 2024, has impacted investor Buyer demand, particularly in complexes popular for short-term rentals, which has led to an increase in condo listings & dampening effect on values, as some investors re-evaluate their strategies.
The subdued sales this year also reflect the fact that a number of buyers brought forward their purchases during the COVID-19 period, leaving less activity in the current market. However, with interest rates starting to fall—and still historically low by long-term standards—buyers shouldn’t wait too long trying to time the market perfectly, as they may miss out on prime opportunities.
Looking forward to next spring, when the Okanagan Golf Club re-opens, I am anticipating increased demand, making now an excellent time for Sellers to prepare. Tackle those renovations, redecoration projects, and any minor fixes you’ve been putting off to ensure your property is ready to stand out when the market heats up again.
If you would like to chat about the next steps, or obtain a Market evaluation of your home please contact me, as I have over 19 years of experience as a specialist, in buying and selling properties in the Quail Ridge and University area.
Trish Cenci
Tel: 250-864-1707
Useful Links Quail Ridge & University
My Website : http://www.trishcenci.com
Current Quail Ridge Listings
Current UBCO Listings
Quail Ridge Residents Association Link
Okanagan Golf Club Link
University of BC Okanagan Link
