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