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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.
Kelowna & the Central Okanagan Real Estate Market Report | April 2024 Edition
Hey everyone, welcome back to another real estate market update for Kelowna & the Central Okanagan this time reviewing the stats for March, 2024. As we dive into the latest findings, it’s clear that the Spring Market is well underway, with signs of activity beginning to heat up across the region.
Market Activity:
- Sales: In the past month, we’ve seen a notable surge in sales, reaching 334 transactions. This represents a robust 19.8% increase from the previous month. While this is still down by 24.24% compared to last year, the momentum is building, indicating a positive trajectory for the market.
- Absorption Rate: The absorption rate has climbed to 9.9%, maintaining the status of a buyer’s market. However, this slight uptick suggests growing demand and a potential shift in market dynamics in the coming months.
- Average Sales Price: Despite the increase in sales volume, the average sales price for real estate has dipped by 5.21% from last year, settling at $724,222. This decline may present opportunities for buyers seeking more affordable options in the market.
- List-to-Sell Ratio: Encouragingly, the list-to-sell ratio has improved to 97.04%, indicating a strengthening seller’s position in negotiations.
- Property Types: Condos have seen a modest increase in average price by 2.67%, while townhouses have also experienced a slight uptick of 4.22%. The average price of a single-family home has dipped below the million-dollar mark, down 4.21% from last month to $989,284.
- Days on Market: Properties are spending an average of 63 days on the market, a slight decrease from the previous month but still up marginally from this time last year.
- Listings saw an increase from last month and a surge from this time last year of 27.1% with 3,372 current active listings.
Economic Indicators:
- Inflation Rate: The inflation rate has decreased slightly to 2.78%, indicating stable economic conditions.
- Interest Rate Outlook: Looking ahead, the next Bank of Canada interest rate announcement is scheduled for April 10th, 2024. Experts predict no change, with anticipation mounting for potential rate cuts in June. This forecast bodes well for a strong market throughout the spring and into the summer months.
As the Spring Market gains momentum in the Okanagan, we anticipate continued growth and increased activity across the board in the coming months. Check out the video version of my market report and associated stats to go along with it. Whether you’re considering buying or selling, now is a great time to explore your options in the market. As always, I’m always here to help and I’m never too busy for your referrals!
