While it doesn’t quite feel like Spring yet in the Okanagan, the Kelowna real estate market continues to heat up and is in full swing going into Spring. As we take a look back at the first quarter of the year, two of major factors were the unusually long Winter and the lack of homes on the market.
The Kelowna real estate market statistics for March 2017 shows an increase in residential house prices along with a decrease in inventory for this same time last year. As reported by the Okanagan Mainline real estate board, prices for a residential home rose to $640,513 which is a 13% increase over last year, bringing the year to date average to $633,104. This increase in property values is largely due to lower inventory of homes for sale in the Kelowna real estate market. Tracey Vrecko comments,
“This low inventory of homes for sale in Kelowna and surrounding areas continue to create a seller’s market and pushing home values up. “While this is great for the seller’s, it can be a frustrating market for buyers. Especially first time buyers looking to get into the Kelowna real estate market.”
Current active listings in Kelowna and surrounding area are down to an all time low of 659 single family residential homes and 340 condominiums and townhouses.
A Buyers’ survey for the Kelowna real estate market statistics for February 2017 showed 21.5% of the buyers were upsizing from their current home, tied with first time home buyers, while 17.5% making that lateral move and 11% of homebuyers were downsizing from their larger family homes.
Currently, most buyers are coming from within the Okanagan with 63.5% of sales to homebuyers already living in the Okanagan which is typical for the first quarter the year. The Lower Mainland and Vancouver accounted for 12% of the buyers and 10% were buyers out of Alberta. The Kelowna real estate market has seen an increase in Foreign buyers over the past few months from 1% to 3% which is most likely a result of the Foreign buyer’s tax implemented by the federal government in late 2016.
The demographic of homebuyers was made up of:
- Professional couples with no children 31%
- Families with children 26%
- Empty nesters 19%
With lower inventory levels and high demand from buyers, home sales will remain strong going into the second quarter of the year. As we approach what is typically the busiest time in the Kelowna real estate market, inventory continues to be a concern. Vrecko comments,
“I have sellers ready to list their home for sale but are worried they will not find another home to buy”
With warmer weather on the horizon, there could be homeowners waiting to list their homes for when the grass is green and flowers are out. Historically, inventory levels increase in the Spring and Summer months, which will be a welcome change to the Kelowna real estate market and Buyer.
When buying and selling real estate in Kelowna, it is important to use the expertise of a professional real estate agent who understands market trends and conditions to give you the advice you need. Quincy Vrecko and Associates is one of the top real estate teams for RE/MAX Kelowna. With 5 professional real estate agents experienced in the Kelowna real estate market, rest assured you would be well looked after.
Call the team at Quincy Vrecko and Associates 1-778-760-2860 to stay up to date on the Kelowna real estate Market statistics each month.