Canary in the coal mine
Kelowna Condo sales stats are the canary in the coal mine in determining whether or not our real estate market is doing okay. Spoiler alert…..it is, sort of. There, I’ve saved you some time reading the rest of this so go out and enjoy the Okanagan summer. There’s no typical condo buyer here anymore because it used to be first time buyers, last time buyers or investors and now there’s a mix of the entire population. If you’re still with me here’s what’s been happening.
Currently there are 580 condo apartment units for sale in the Kelowna area. I excluded the ski resort, condos on native land and did my best to exclude time shares because it just muddles things. 157 of these are currently vacant and not generating any money for owners (bad) and we’re down to only 9 in foreclosure (good unless you’re one of the 9). There are 9 for sale under $100,000 and 4 priced over $1 million. Then there’s a whole bunch in the middle.
You can look at 580 and make an argument that it’s still too high based on 70 unit sales per month and you’d be right but it’s so much better than it has been. There have been 420 sales since the beginning of this year so by definition we’re still mired in a buyers’ market but the end appears to be in sight. Through this time last year there were only 290 sales and it looked like things would never turn around but it appears that they have. If numbers for the rest of the summer reflect what happened during the spring we’ll plough through this unsold inventory and approach a balanced market by the fall. We still have about 160 condos too many for what the market is absorbing but we’re quickly chipping away at that number. Yes, winter tends to brutal for condo sellers but this year just might be different this year after three strong quarters.
Prices are rising but incrementally. The average sale price so far this year is $249,000 which is up marginally from $240,000 last year and $244,000 for this time in 2012. Nothing to get too excited about here but condo sellers are certainly defying the odds with sale prices increasing, albeit minimally, when market forces dictate that they should be falling
Please share this with anyone thinking of buying or selling a condo.
To view condos for sale in Kelowna go to www.CondosofKelowna.ca or call Andrew Smith directly at 250-979-8066. Over 22 years experience helping people achieve their dream of home ownership!
Follow me on Twitter@smithap01
Read more Ups and Downs in the World of Housing articles
- August 2014 Kelowna Market Update Sep 8
- Kelowna Housing winners and losers Aug 25
- People talking about real estate again Aug 11
- Closing on a sale during a forest fire Jul 21
- A Realtor needs great knees! Jul 14
- Canary in the coal mine Jun 30
- Kelowna: For sale by owner Jun 16
- Where normal people live Jun 9
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