Low Number of Homes For Sale Impacting the Central Okanagan and  Kelowna Real Estate Market

07 Mar

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%.

JANUARY SURVEY SUMMARY

Property Type:

21.9% by Relocating and moving to similar property type (up from 18.6% in December)
21.2% by First Time Buyers (up from 19.7%)
17.2% by Buyers Downsizing (up from 13.8%)
12.6% by Move-Up Buyers (down from 16.0%)
9.9% buying Revenue/Investment Property (down from 14.9%)
7.9% moving from Single Family Home to Strata Unit (up from 5.3%)
4.6% buying Recreation Property (down from 5.3%)
2.6% moving into Retirement Home/Seniors Community (up from 1.1%)
2.0% moving from Strata Property to Single Family Home (down from 3.2%)

Buyer Type (Family Dynamic):
26.1% Two Parent Family/Children (down from 29.5% in December)
24.2% Couple without Children (down from 30%)
19.6% Empty Nester/Retired (up from 14.7%)
14.4% Single Female (up from 12.1%)
9.2% Single Male (down from 9.5%)
3.3% Single Parent with Children (down from 4.2%)

Moving From:
54.8% from Within OMREB Board Area (down from 60.8% in December)
21.3% from Lower Mainland/Vancouver Island (up from 10.1%)
11.6% from Alberta (up from 11.1%)
5.2% from Other Areas in BC (down from 5.8%)
2.6% from Saskatchewan/Manitoba (down from 4.2%)
2.6% from Eastern Canada/Maritimes (down from 3.7%)
1.9% from Outside Canada (down from 4.2%)
0% from NWT/Yukon (no change from 0%)

For more information contact Mark West at mark@epicres.com or call 1.866.679.3742 ext 201

No comments yet.

Leave a Reply