As the summer heats up in Okanagan, the hot Kelowna real estate market cooled off slightly. Posting an 8% decrease in sales from the month of July and a 14% fewer sale from the same month last year. This decrease in sales is largely due to continued low inventory levels of homes for sale in Kelowna.
New listings were at par with August of last year. As inventory remains low, the Kelowna real estate market continues to favor the seller. Days on market rose slightly, which is typical for this time of year. Average price for a single family home in Kelowna remains steady at $678,608.
When comparing different categories of the Kelowna real estate market to the same time last year, there were some interesting numbers produced.
Single family homes
August of last year, there were 349 sales of single family homes in Kelowna where this year sales totaled 261. The lack of single family homes for sale in Kelowna continue to factor into the decrease in sales. Yet another major factor is the rise Kelowna real estate market prices. It is becoming harder and harder for first time home buyers to buy a single family home. They are turning to condo and townhouse living.
Condominium and townhouses
As condos and townhouses become the more affordable option in a red hot Kelowna real estate market, sales are at par to last year despite the lower inventory levels. Last year in August there were 281 units sold and this year is nearly the same at 257. This trend will likely continue as new developments of condos and townhouse complete and prices for single family homes remain out of reach for some buyers.
According to CMHC, by this time last year new home construction was up 65% over the previous year and lot sales were very brisk to say the least. For the month of August alone there there were 57 lot sold compared to only 30 this year. Rising building costs and lack lots for sale in Kelowna contributes to this decrease.
The sale of waterfront homes in Kelowna has seen a significant decrease this year with only 14 sales registering for the month of August. Yet last year there was of 25. Sales of waterfront homes are down due to the flooding of Lake Okanagan where over 200 docks lakeshore were damaged from the floodwaters. Once docks are repaired and replaced, the Kelowna real estate market could see an increase in listings and sales of waterfront homes.
Luxury real estate in Kelowna in August is down 16 sales to 35 on a last year of 51. Homes sold over 1 million make up this category. While inventory is the common theme for this year’s Kelowna real estate market statistics, there were environmental factor such as floods and fires. Luxury homes with big lakeviews where difficult to apprecite because of the fires in BC. It was surprising to see a decrease in this category because of the rise in the real estate values pushing more homes over that 1 million dollar mark.
As summer winds down the we move into the 4th quarter, it is typical to see a slowdown from the busy Spring and Summer market. Demand is still strong and with lower inventory, we remain in a seller’s market going into the fall. This could change with new home starts in 2016. It is likely to see an increase in re-sale listings as homeowners get ready to take posession of their new build.
To stay on top of the changing Kelowna real esate market, use the expertise of a professional real estate agent. Quincy Vrecko and Assoicates is a top Kelowna real estate team with RE/MAX Kelwona focused on real estate trends. We can keep you up to date on listings even before they hit the market.