Low Number of Homes For Sale Impacting the Central Okanagan and Kelowna Real Estate Market
Kelowna March 8th 2017 – 334 homes were sold In the Central Okanagan in January, a 22% decrease over the 453 sales in December, reports the Okanagan Mainline Real Estate Board (OMREB).
Sales volumes for January was just 5.6% higher than a year ago, the inventory of properties available for sale is 30% lower than this time last year.
The Central Okanagan average homes price in January was $439,472.99, 4.8% lower than December, yet 21% higher than this time last year. Days on market for January was 96, relatively consistent with December at 91 and November at 96. The average price for a single family home in Kelowna is now $605,700.
Image courtesy of HM Commercial
The City of Kelowna reports the highest number of building permit applications ever over the course of this past year, we’re hopeful that new properties will begin to come onto the market, which should positively impact housing affordability.
In the past six years, move-up buyers have, on average, accounted for 23.3% of purchasers while first time buyers are 20.3%. The 75- month average also shows that most buyers of Okanagan homes are those who already live in the area at 57.7%, followed by those from Alberta and the Lower Mainland/Vancouver Island. While buyers from Alberta and the Lower Mainland/Vancouver Island swapped positions in the past couple of years, this trend reversed itself in December 2016 with Alberta buyers inching out Lower Mainland/Vancouver Island buyers at 11.1% of total buyers (up from 9.2% in November) and Lower Mainland/Vancouver Island buyers coming in at 10.1% (down from 16.5%). Foreign buyers continue to account for a small proportion of buyers, with the six year average at 2.1%.