October Real Estate Update: Kelowna Market Late 2024 Run
Kelowna’s real estate market saw a shift this October, hinting at a renewed buyer confidence. While one month of data doesn’t make a trend, the latest numbers reveal a potential shift in consumer confidence. With recent announcements of mortgage rule changes allowing properties over $1 million to be purchased with less than 20% down and additional rate cuts likely on the horizon, it appears more hesitant buyers are beginning to step off the sidelines.
Key Highlights for October:
Drop in Active Listings: The number of active listings decreased from 3,798 in September to 3,551 in October - a typical seasonal shift. This 6.5% drop aligns with the usual market slowdown as winter approaches, yet it’s coupled with an uptick in sales, creating an interesting dynamic.
Sharp Increase in Sales: Sales surged from 270 in September to 384 in October, driving the market closer to a balanced state. The drop in months of inventory from 14 to 9 further reflects this shift, suggesting an evolving market more favorable for sellers and buyers alike.
Unseasonal Sales Volume: October’s sales volume hit an impressive $320 million - a notable $100 million increase from last year and more typical of spring’s heightened market activity. This strong volume for the season may be indicative of renewed buyer enthusiasm.
Steady Home Prices, Strong Equity Gains: While the average single-family home price held steady around $1,109,000 compared to last year, owners who purchased in 2020 at the average of $915,000 are seeing equity gains close to $200,000. This equity growth demonstrates Kelowna’s market stability even amid national shifts.
Falling Mortgage Rates: For the fourth consecutive month, mortgage rates dropped, with October seeing a significant 0.5% decrease. This decline, with a potential additional cut on the horizon, could continue to boost buyer confidence, especially with the election concluded and mortgage rule changes are also coming in December which could add additional fuel.
As Kelowna’s market evolves, the current data shows resilience and renewed activity. The combination of lower rates, equity growth, and increased sales could attract more interest as we move into 2025.
Feel free to connect with me if you’d like more insights.
Total Sales
Sales: 384
New Listings: 876
Current Inventory: 3,551
Median Days to Sell: 51
Average Days to Sell: 65
Months of Inventory: 9
Median Sale Price: $770,000
Average Sale Price: $836,295
Total Volume: $320,301,007
Single Family Sales
Sales: 186
New Listings: 369
Current Inventory: 1,664
Median Days to Sell: 44
Average Days to Sell: 61
Months Inventory: 9
Median Sale Price: $945,000
Average Sale Price: $1,109,887
Total Volume: $205,329,074
Townhome Sales
Sales: 58
New Listings: 125
Current Inventory: 430
Median Days to Sell: 52
Average Days to Sell: 63
Months of Inventory: 7
Median Sale Price: $679,000
Average Sale Price: $715,513
Total Volume: $41,499,740
Apartment Sales
Sales:93
New Listings: 257
Current Inventory:719
Median Days to Sell: 53
Average Days to Sell: 66
Months of Inventory: 8
Median Sale Price: $442,500
Average Sale Price: $489,042
Total Volume: $45,480,893
While one month of data doesn’t establish a trend, recent changes by the Government of Canada - both in interest rate reductions and updated mortgage rules - seem to be motivating buyers who were previously on the fence. If you’ve been considering a purchase but held off due to a lack of 20% down or enough equity to move up, the landscape has shifted significantly. Now could be an ideal time to revisit your options.
We’re always here to help! Give us a call or reply to this email with any questions you may have.
Mark and Maddie Coons
778-744-0872
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