Kelowna Real Estate Market Report | May 2024 Edition

Welcome back to my monthly market report for real estate in the Central Okanagan. Let’s delve into the statistics for April 2024.

Economic Indicators:

– Inflation: In March, inflation rose slightly to 2.9%, still failing to break the 2.7% mark. Hopefully we will see a downward correction in April which will move us closer to a drop in interest rates.

– Absorption Rate: The absorption rate for the last month increased to 12.06%, indicating a move towards a balanced market. Anticipated interest rate drops may bolster this trend, fortifying market equilibrium.

– Interest Rates: The Bank of Canada’s overnight interest rate held steady at 5% in April. Despite speculation, there were no rate cuts. With inflation on the rise, the possibility of rate adjustments in June remains uncertain.

Market Activity Overview:

– The real estate market maintained momentum throughout the month. While initial activity appeared robust, the latter half saw a relative slowdown, possibly influenced by fluctuating interest rate expectations.

– Despite these fluctuations, the market demonstrated resilience. Notably, inventory levels surged, with 3,706 current active listings—a 31% increase from the previous year. Sales, while slightly lower than last year, increased over 25% from March, totaling 447 transactions.

– The overall average sales price remained steady compared to the previous year with an average price of $751,829, and over the last month we saw an increase across the board for individual products:

  – Condos: $511,379

  – Townhomes: $717,629

  – Single-family residential: $1,026,478

Nationally, home prices exhibited an upward trend, mirroring the local market’s positive trajectory. Properties spent an average of 59 days on the market, with a list-to-sell ratio of 95.62%—indicating strong demand despite a slightly longer selling period.

Despite economic uncertainties, the real estate market in the Central Okanagan experienced notable positive shifts, transitioning towards a balanced state. While awaiting potential interest rate adjustments, the market’s gradual growth signifies a welcome change from previous volatility.

If you have any questions or wish to discuss market trends further, feel free to reach out. I’m always happy to help!

Please enjoy the video breakdown and stats below.