Is the Kelowna Real Estate Market Turning a Corner?
If you've been waiting for the perfect moment to buy a home in Kelowna, that window of opportunity might be closing. With prices stabilizing—and in some cases rising—and sales surging by 31% year-over-year, the Kelowna real estate market appears to be shifting. Let’s break down what’s happening and what it means for buyers and sellers.Market Snapshot: Stabilization and Growth
After a significant peak two and a half years ago, home prices in Kelowna declined but are now showing signs of stabilization. In some categories, prices have even started to climb. Here’s a quick overview:- Sales Activity: Sales in the fall of 2024 increased by 31% compared to the same period last year, signaling strong buyer interest.
- Inventory Levels: While overall inventory is still up 18% year-over-year, it has been gradually declining over the past three months. Fewer new listings combined with increased buyer activity are tightening the market.
Single-Family Homes: Signs of Recovery
- Prices on the Rise: The benchmark price for single-family homes increased by 3.1% in November, climbing back above $1 million after a dip in October.
- Year-Over-Year Comparison: Prices are still down 14% from the peak but are showing a stable upward trend.
- Inventory Trends: Months of available inventory have fallen from 14 (a strong buyer's market) to about 7 or 8 months in October and 10 months in November, showing a growth in demand.
Townhomes: Stability Amid Volatility
- November Growth: The benchmark price for townhomes rose slightly by 1.1% to $726,000.
- Year-Over-Year: Prices are down 3.7% compared to last year, but the last few months show signs of stabilization.
- Market Trends: Over the past five years, townhome prices have seen significant growth and are now back to where they were three years ago.
Condos: Buyer Opportunities Abound
- Declining Prices: The benchmark price for condos dropped by 1.7% in November to $476,000, marking a 4.5% year-over-year decline.
- Inventory Insights: A surplus of available condos, including new developments not listed on MLS, is keeping this segment firmly in a buyer’s market.
- Affordability: With many condos available under $500,000, this is a great entry point for buyers.
What Does This Mean for Buyers and Sellers?
For Buyers:This may be your last chance to buy at the bottom of the market before prices start to climb more consistently. With stabilizing trends, lower interest rates, and increasing activity, waiting too long could mean paying more in 2025.For Sellers:
If you price your home realistically based on current market conditions, you’re more likely to secure a successful sale. The rise in buyer activity means a higher chance of getting your property sold compared to last year.