If you’ve been holding off on buying a home in anticipation of further price drops, now might be the moment you’ve been waiting for. In October, Kelowna’s home prices took another step down. Here’s a breakdown of what happened in the market, what it means for buyers, and where we might be headed.
Key Market Trends for October
- Home Prices:
- Single-Family Homes: The benchmark price for a single-family detached home fell by 3.4% from September, landing at $983,000. This is significant because it dipped below the million-dollar mark again. Year-over-year, prices are down 4.7%, showing a drop from $1,032,000 in October 2023. From the market peak in early 2022, single-family home prices have decreased by about 16.7%.
- Townhomes: Townhome prices experienced a smaller change, down 0.9% from September to $728,000. Compared to last year, prices have dropped by 2.6%, stabilizing around where they were in the spring of 2023.
- Condos: The condo market saw a significant drop, with prices falling 4.2% month-over-month from $505,000 in September to $484,000 in October. This is nearly a 7% decrease year-over-year. Historically, prices around the $480,000 mark have shown resistance, indicating this may be a price point where values could stabilize.
- Sales Activity:
- For the first time since January 2024, October saw more home sales compared to the same month in 2023. However, sales are still 7% down year-to-date compared to last year, showing that 2024 has been slower overall.
- Buyer activity picked up in October, likely influenced by recent interest rate decreases, though their full impact may not have been felt until later in the month.
- Inventory Levels:
- Overall Inventory: Inventory in October remained 26% higher than in October 2023 but has started to decline from September levels. This is typical as more homes sell and as some sellers pull their listings for the winter months.
- Available Inventory by Property Type:
- Single-Family Homes: 7.9 months of inventory, still a buyer’s market but down from the previous month’s 14.1 months.
- Townhomes: 7.3 months of inventory, showing a decrease from September’s 11.4 months.
- Condos: 7.7 months of inventory, slightly lower than the 8.5 months seen in September.
Average Time to Sell
- Single-Family Homes: Currently taking about 61 days on average to sell, up from last year.
- Townhomes: Taking about 63 days on average to sell.
- Condos: Taking about 66 days on average to sell.
Price Negotiation
- Buyers in Kelowna are negotiating an average of 4.5% off the list price, with the average sale-to-list price ratio at 95.6%.