Kelowna Housing winners and losers
When Kelowna housing markets shift there inevitably will be winners and losers. As we get closer and closer to Labour Day and the weather gets a little cooler there are some emerging trends developing in Kelowna’s home sale market. Firstly, when all the dust settles 2014 will be a better year than 2013. In fact it will be better than every year since 2008. When I say better, I’m referring to the actual number of residential housing units sold because it benefits a community when more units are sold and families who price their homes realistically are able to make a move. We’re only 600 homes away from surpassing last year’s total and we should hit that number sometime in November.
There’s nothing worse than being a “have to” seller being put in a position where s/he can’t move because market forces make it impossible If your house has a $300,000 mortgage and its value has dropped to $290,000 you just can’t move. If your try to sell your house during a really slow period in the market (and we’ve seen a lot of those) cleaning it again won’t make a difference if people aren’t showing up to see it. Most home owners aren’t in this position now.
The winners so far this year are people who bought a home anytime since 2009. The average sale price has hovered around $500,000 for the past five years but we’ve seen it jump to $545,000 since April 1st this year. If you have a mortgage, you have chipped away at the principal and even with a 5% high ratio loan, you’ve built up a reasonable amount of equity and are probably sitting in a better financially compared to when you bought.
Odd statistic time. As of today (08/22), there are 1,695 residential homes for sale in the Central Okanagan and there have been 1,695 sales over the past 6 months. That’s as balanced as a market can get which is the healthiest market of all. We aren’t seeing multiple offers on every new listing that comes up for sale nor are we seeing well priced houses go months without showings. Things are just…..normal.
The losers in this housing market are the ones who made the reasonable argument that interest rates would have risen by now and the $500,000 average selling price was sure to drop. A community where rents don’t support housing prices is due for a drop. Didn’t happen. A community where the average household income is about $60,000 can’t support a $500,000 housing market. Well, it did. No question there are threats to our high housing numbers…..Ongoing labour disruptions with teachers, mind boggling housing numbers from Toronto’s condo market and Vancouver’s housing market which affect interest rates but for now things are going okay and I’m optimistic about 2015.
Thanks for reading.
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Call and WIN with Andrew Smith directly at 250-979-8066.
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Read more Ups and Downs in the World of Housing articles
- Where are Kelowna buyers coming from? Sep 22
- 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
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