Crazy time in Okanagan market as records smashed

Posted by on Wednesday, May 11th, 2016 at 2:16pm.

It’s a wild ride in the Okanagan right now with the market heating up with the valley’s spring temperatures. Last month an all-time high of 1,069 sales in the Okanagan was reached, breaking the previous record set in 2007 when 1,015 in one month was recorded. 

The high volume of sales last month was 34.3% higher than April 2015. 

Home prices are climbing higher

Prices are escalating as well, making sellers pretty happy. The average price last month came in at $459,595 which is 13.4% higher than April of 2015.  In terms of total dollar volume, this translates to 52.3% more than last year’s performance in April.

In the Okanagan Mainline Real Estate Board’s (OMREB) monthly report, president Anthony Bastiaanssen called the demand for housing in the region “exceptionally strong” which would appear to be a bit of an understatement.

Where buyers are coming from

Echoing similar comments made last month, Bastiaanssen says buyers are primarily local; however, many buyers are people who are relocating from the Vancouver area first, and then from other Canadian points.

Confidence in the Okanagan’s housing market stems from B.C.’s extremely strong economy, the envy of the entire nation at the moment.  Employment numbers are strong, wages continue to rise and a good performing work force due to migration from other Canadian provinces.

The OMREB president further commented that record-setting demand for housing in a market with relatively few listings on the books is the right recipe for a seller’s market and the imbalance is putting pressure on home prices pushing them ever higher as 2016 rolls on.

Kelowna and the OMREB Central Zone

Sales of all property types soared in the Kelowna area (Peachland to Lake Country) even higher than the Okanagan’s average last month, up nearly 48% over April of last year.  A total of 821 units from all sectors changed hands. Specifically with residential sales, these numbers were up by almost 40% from a year ago to 743 units.

Single-family detached homes sales were up 31% over April 2015 with a total of 383 homes changing hands.  Last year it took an average of 63 days to sell a detached home in Kelowna and the Central Okanagan, and last month that number fell to 50 days.

The number of units in the residential sector that hit the market last month was 932 which is 6.4% less than April 2015.  However, there were 11.5% more detached homes listed for sale last month than there were last April.

Complete statistics from across the Okanagan

From Revelstoke west to Sicamous and south to Peachland, sales last month were more than 40% higher than April 2015.  Sales in every market sector numbered 1,208 units.  There were 1.2% more listings than there were in April 2015 showing strong market confidence while the actually number of listings on the market fell by 16% from this time last year to 6,003 units. 

Kelowna & Area                         April 2016        April 2015        Change 

Total Sales:                                        743                    53           +39.92%

Total Sales YTD:                           1,955                  1,543         + 26.70%

Average Price                           $460,195            $421,70           +9.13%

Median Price                            $420,000            $390,000           +7.69%

Days on market (average)                   59                      73           -19.18%

Days on Market YTD:                        67                       74             -10.64%    

New listings April                            932                    876              +6.39%

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