Kelowna Real Estate Market Report | March 2024 Edition

Hey everybody, I’m back again with another market update for real estate in Kelowna & the Central Okanagan. The burning question on everyone’s mind: Is the Spring Market in full swing? Are property sales skyrocketing, indicating a fully rebounded market? Not quite yet. However, what we’ve observed as real estate agents in recent weeks is the market beginning to stir from its slumber. It’s not quite as if the market has already downed its coffee and hit the treadmill, but it’s certainly stretching out, rubbing the sleep from its eyes, and moving in the right direction.

Properties are starting to see movement, although sales are still down by almost 6% compared to this time last year. Nevertheless, we’ve experienced a notable uptick from last month, with a nearly 19% increase in total units sold, reaching 268. It’s worth noting that we faced a deeper hole to climb out of compared to last year, so realistically, we are progressing at a predictable pace.

The absorption rate in the Central Okanagan remains just under 10% at 9.3%. Looking ahead, the Bank of Canada is scheduled to make another interest rate announcement for its overnight rate next Wednesday, March 6th, with the current rate holding steady at 5%. The likelihood of a rate drop next Wednesday is slim, with most experts predicting rate cuts closer to summer. Meanwhile, the U.S. inflation rate has dipped into the 2% range, but rate cuts have yet to commence. Canada’s current inflation rate stands at 2.86% and is trending in the right direction, indicating that rate cuts are imminent. The question remains: who will act first, Canada or the U.S.? (Probably the States.)

Now, let’s delve deeper into the real estate statistics from the past month.

• Average Sales Price: The average sales price has decreased slightly by just over 5% compared to this time last year, settling at $724,559.
• Sales Price by Property Type: The average sales price of individual property types varies, with condos and townhouses experiencing a slight decrease, while single-family homes have seen a slight increase.
• List-to-Sell Ratio: The list-to-sell ratio has increased by 2% to 96.56% from last month.
• Days on Market: Properties are spending an average of 74 days on the market, which is an 11% increase compared to this time last year.
• Inventory: Current inventory has surged by 28% compared to this time last year, totalling 2,880 listings.

In summary, while there haven’t been any dramatic shifts over the past month, I anticipate a significant uptick in the stats for March and April, particularly if there is a cut in interest rates. If you or anyone you know is considering buying or selling in Kelowna and the Okanagan, I’m here to help and I am never too busy for your referrals.