Verging on a sellers' market

A local real estate team says when it comes to single-family homes, Kelowna is on the verge of a sellers’ market.

The Krieg Family with RE/MAX said new numbers suggest buyers are back in force.

“I don't think anyone saw this coming, but in one month, sales have gone from 50% under the 10-year average (139 sales in May 2020) to 261 sales in June, (over the 10-year average),” said Colin Krieg.

“Multiple offers and properties selling over asking price are no longer a thing of the past.”

Krieg said figures from the Okanagan Mainline Real Estate Board show single-family-home sales in June were up 20% over June 2019.

The average price is now $748,000—the third-highest it has ever been in the city. Almost 90% of the sales were under $1 million, with only two sales over $2 million.

However, supply is getting shorter. Listings are down 18% over last year, and 22% under the 10-year average.

Meanwhile, townhome sales, at a total of 77, are down slightly over this time last year, but up significantly over April and May and in line with the 10-year average of 75 sales for the month of June.

Apartment and condo sales were down 5% in June, at a total of 97 sales, compared to 102 in June 2019.

“This segment of the market is the slowest out of all three,” said Krieg.

Provincially, figures released Tuesday by the British Columbia Real Estate Association show the B.C. market as a whole is bouncing back.

The association reports that a total of 8,166 residential unit sales were recorded by the Multiple Listing Service.

“Sales around the province surged back to pre-COVID-19 levels in June,” said BCREA Chief Economist Brendon Ogmundson. “While there are some temporary factors that may have pushed demand forward, we are cautiously optimistic that market activity will remain firm.”

However, active listings are still down close to 20 per cent year-over-year and, as a result, many markets are seeing higher prices.

For more local business content, visit okanaganedge.net.

— Okanagan Edge staff

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