2024 Kelowna Real Estate Year in Review Part 1
Total sales in 2024 so far have reached 4,081 as of December 11, 2024. In comparison, the total number of sales in 2021 was8,211 on the MLS. This means 2024 has seen only half the amount of listings sold compared to 2021. However, 2021 was an anomaly; it was still 42% higher than the current 10-year average of 5,748 sales. Compared to this average, 2024has experienced approximately 29% fewer sales.
For single-family homes, 2024 is set to become the year with the lowest number of total sales in the last decade. With only 1,727single-family home sales so far, this year is trailing behind 2023, which had1,924 sales, and 2019, which saw 2,247 sales. To say the least, it has been a challenging year for many home sellers.
Despite the low sales numbers, the number of active listings on the market has increased. Currently, there are 1,351 active listings, and so far in December, 84 listings have been removed from the market. For this time of year, the inventory is 58% higher than the seasonal norm.
Are high interest rates to blame for the drop in sales? It is tough to know given the data, it does appear that consumer confidence is increasing especially when looking at the increase in sales activity in the last few months and the activity is up over the same time last year.
But I personally don’t believe its all interest rates impacting consumers decisions, zoning rules have changed, mortgage rules and as discussed a couple weeks back the overall housing market has been hit with numerous other Federal and Provincial legislation changes and taxes which can be viewed here. So many changes in such a short period of time it takes time for consumers to feel comfortable with the potential implications of each change. With the exception of the $1M+ range the most active price range in 2024 has been the $800,000-$900,000 followed closely by the $700,000-$800,000.
We could be seeing more of a shift in the new year into the $1M plus range with mortgage changes happening on December 15th that will now properties over $1M to be mortgage insured and not needing the 20% down.
Depending on your perspective, 2024 may appear to favor homebuyers. With increasing inventory, home prices might be expected to decline. While we have seen a drop from the peak prices of 2022, it’s essential to view real estate over a longer time horizon. On average, homeowners move six times in their lives. When you take this into account, real estate is best seen as along-term investment.
Over the past decade, home prices have shown remarkable growth even with the recent softening.
For home sellers who purchased before 2020, the equity built up in their homes offers flexibility and more options when deciding how to proceed with selling. For those planning to sell in 2025, declining interest rates, easier mortgage accessibility and increasing market activity are promising signs. Compared to 2023,sales in October 2024 increased by 56%, and November saw a 12% rise, suggesting that consumer confidence is starting to improve.
For buyers waiting for the bottom, we may be at or near the bottom. Although there are a number of other factors coming into play and no shortage of government interventions that can help change or shape consumer confidence, amidst poor economy numbers, it appears the Federal Government is pulling out all the stops they can to create a soft landing. Todays jumbo rate cut of 0.5% another point in the direction the Bank of Canada and the Federal Government is attempting to do what it can by making mortgages not only cheaper, but also easier to get which normally will increase demand.
If you have thought about buying, selling or doing both in 2025, with the shifting market planning is an important step, reach out to get a personalized plan based on your situation and overall objectives.
Let us know if there is anything we can ever do you for you. Please feel free to reach out.
Mark & Maddie Coons
📞 778-744-0872
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