Kelowna Real Estate Market Update September 2024
Sales COLLAPSE! Is a Market Crash Next?
Overall, prices are down significantly from the peaks we saw in the spring of 2022 and 2023 but more recently prices have stabilized again. We’ve had what seems more like a market correction than an outright real estate market crash. At least when it comes to prices. The number of properties sold has certainly crashed over the last year but prices continue to try to hold on.
The local real estate market has seen a dramatic drop in the number of properties sold this year, compared to the same periods last year AND the year before, but prices seem to be hanging on over the last few months.
It’s as though there is a standoff between sellers who still want the market to be like 2022 or 2023 and buyers who are willing to wait for prices or interest rates to come down, or in some cases both.
With interest rates coming down now, and the Bank of Canada lowering its overnight rate three times in a row, a lot of those buyers are getting their wish when it comes to interest rates and may re-enter the market which could increase sales.
Last month I wondered if the real estate market crash was over, or if a correction in the market had already occurred. And while it looks like it has in the Single Family Home market, having 10 months of available inventory will put some pressure on these prices to soften at the very least, but I don’t know if they are going to drop significantly more than the 13% they have since the market peak of March 2022.
Condo prices in Kelowna are a different story though, and as we can see from the average price, prices are still correcting and have more room to come down.
There’s such a gap between the average and benchmark prices that the benchmark price should come down as we head towards the end of the year, probably as early as next month.
Inventory in Condos is up 50% from a year ago and that has to push prices down, especially with investors getting out of the market due to recent changes to the tenancy laws in BC and short term rental restrictions.
Will there be an outright crash in the Condo market? I’m not so sure about that but prices will continue to soften and correct. All this being said, if you’re looking for an all out crash across the entire market, it’s not very probable unless we stay in a strong buyers market for another 6 to 12 months.
To learn more about what these trends mean for you as a buyer or seller, and a more in-depth analysis, check out the video below:
Or, Check out my Kelowna Real Estate Guide for a comprehensive overview of the buying process.