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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 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!
