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Kelowna & Central Okanagan Real Estate Market Report | June 2024 Edition
Welcome back to another monthly market report for real estate in the Central Okanagan this time overviewing the stats for May in 2024.
Finally, some good news! The Bank of Canada has reduced interest rates for the first time in four years, cutting them by 0.25 basis points to 4.75%. While a small decrease, it’s a step in the right direction. With inflation down to 2.7% in April and nearing the target rate of 2%, we can expect further gradual rate cuts this year, provided inflation remains under control. This should bring some relief to buyers who have been hesitant to enter the market due to high rates, contributing to the slower-than-usual market activity for this time of year.
The absorption rate has decreased to 11.8%, marking a return to a buyer’s market. Despite being slightly above 12% last month, the market didn’t feel balanced. We’re still dealing with over a year’s worth of inventory, and sales have yet to exceed 500, which has contributed to a slower market. However, I anticipate that the recent rate cut will spark some activity in the coming month, leading to a robust summer for real estate.
Sales increased by 5.5% from last month but are down 21.04% compared to the same time last year with 473 sales in the month of May. The average price has dropped by 4.33% year-over-year to $747,339. The list-to-sell ratio remains steady at 96.89%. While condos and townhouses saw a slight decrease in average sales price, single-family homes experienced an increase. Properties are spending 3.8% fewer days on the market, averaging 52 days, which is surprising given last month’s activity. Lastly, the total number of listings has surged by 52.07% from last year, reaching 4,001.
I am eager to see how the market develops this month and optimistic about the relief from the prolonged period of high interest rates.
Please check out the full video breakdown and stats below
Kelowna Real Estate Market Report | January 2024 Edition
Hello everyone! Welcome back to another insightful real estate market report. Today, we delve into the statistics for December 2023 in the Central Okanagan. The past year has been marked by various challenges, including a slow start, rising interest rates, and the impact of devastating fires from mid-August to September. These events, combined with high interest rates, resulted in a notable slowdown in the real estate market during the third and fourth quarters.
2023 Recap: Overcoming Challenges
Despite the challenges, there is optimism as we look ahead to 2024. Rumours suggest that the Federal Reserve in the U.S. may cut rates by up to 2.5% in 2024, with the Bank of Canada expected to follow suit by up to 1.5%, potentially lowering rates as early as April 2024. Decreasing bond yields have already started improving fixed-rate mortgages, creating expectations for a more stable and balanced market in the coming year.
Examining Recent Real Estate Statistics
Let’s dive into the recent real estate statistics for a comprehensive overview:
- Economic Landscape:
- The current inflation rate in Canada is at 3.1%.
- The Bank of Canada rate is holding at 5.0%.
- Market Status in Central Okanagan:
- The absorption rate stands at 7.4%, maintaining a Buyer’s Market status.
- Sales for the past month totalled 197 units, marking a decrease of over 22% from last year but only a 4% decrease from this time last year.
- Price Trends:
- The average overall sales price has seen a slight dip of 4% from this time last year.
- Condos and townhouses experienced a slight increase in their average price in the past month, while single-family homes saw a small decrease.
- Market Dynamics:
- Properties are now on the market for an average of 64 days, slightly longer than this time last year.
- Inventory is up by 28% from this time last year.
The Path Forward
As we conclude the 2023 real estate market report, we anticipate a more promising year ahead. The potential rate cuts and improving economic indicators provide hope for a revitalized market. If you have any questions or seek further clarification on these statistics, please feel free to reach out.
For a more in-depth analysis and visual insights, check out the video review on my YouTube channel. Your feedback and engagement are always appreciated.
Here’s to a successful and thriving 2024 in the Central Okanagan real estate market!
