Seller's Market Prevails in Kelowna and Central Okanagan

Posted by on Thursday, May 11th, 2017 at 11:38am.

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The market in Kelowna continues to heat up with prevailing low inventory especially for properties priced under $560,000.  That low inventory is causing residential property prices to keep rising.

Statistics from the Okanagan Mainline Real Estate Board (OMREB) show that last month the average home price rose by $30,000 from $630,000 in March to $660,000 in April of 2017. 

The biggest fight for buyers were homes under $450,000 with some buyer’s choosing to purchase homes further out in Lake Country or deep into West Kelowna territory to find homes

Homes that are priced well are seeing multiple offers within a day of hitting the market.  It’s definitely a seller’s market in Kelowna and throughout the Central Okanagan.

In April, there were 255 detached homes that sold with 782 listings.

The OMREB president, Tanis Read, said in her April 2017 report that while the market is elevated, its holding steady with the number of sales recorded, the average price and average number of days on the market.

Across all segments there were 821 properties sold in the Okanagan region which extends from Revelstoke to Sicamous and south to Peachland. That’s 23% fewer sales than April 2016 and similar numbers to what we saw in March at 824.

In all there were 1,378 listings brought into the market, up slightly from the 1,353 in March. In April 2016 there were 1,490 new listings so fewer people deciding to sell this year.

The average price throughout the Okanagan was $478,715 which is just a bit higher than the $475,172 we saw in March and 4% higher than April of last year.

It’s taking an average of 75 days for a property to sell, four days less than March and of April 2016.

Read noted in her analysis of April that there were more sales this time last year but there was also the inventory to support them.

She said the demand for homes in the Okanagan is very strong and more selection in every price range is needed.

Statistics show that in the last two years, 58% of buyers come from within the Okanagan, 17% come from the West Coast and 10% are from Alberta with 3% classified as foreign. 

Buyers looking to move-up account for 17% of sales and 21% are first-time home buyers.

Advice for Homebuyers in Kelowna

For those wanting to make an offer in this heated market, stay competitive by being prepared.

  • Make sure you’re pre-approved for some rock solid mortgage options
  • Try and have the highest down payment possible
  • Try to submit an offer with the fewest number of conditions
  • Try to meet the seller’s objectives when it comes to possession date
  • Secure a good real estate professional to negotiate on your behalf
  • Be flexible to offer above asking price

Advice for Home Sellers in Kelowna

If you are selling a home or are thinking of putting your home on the market, there’s lots to think about.

  • If your home is worth under $500,000 expect a quick sale. Your real estate professional may advise you not to jump on the first offer you receive.
  • If your home is valued at more than $600,000 you can assist in getting a good price and a clean sale by making sure your home looks its best.
  • Be aware that the peak month of the spring selling season is in May.

Kelowna & Central                 April 2017       April 2016                 Change 

Total Sales:                                 552                  743                      -25.71%

Total Sales YTD:                      1,722                1,954                      -11.87%

Average Price                    $523,672          $481,010                        +8.87%

Median Price                     $481,250          $439,000                        +9.62%

Days on market (average)            43                     58                       - 25.42%

Days on Market YTD:                   53                     66                       -20.88%    

New listings March                   858                    932                         -7.94%

Current Listings                    1,615                  1,991                        -18.88%

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