August Real Estate Update
What an amazing summer we are having, no smoke and no fires close by!?I feel blessed and thankful for warm summer nights,?sitting outside late with crickets chirping away; and it almost feels like Italy!?
The Okanagan real estate market?is still slowing down significantly due to concerns about affordability, waning consumer confidence, and the challenges brought on by evolving public policies and government rules. In the second quarter of 2024, the region saw 2,519 residential sales totaling $1.9 billion.?These figures represent declines of 12.1% in the number of transactions and 13.8% in transaction value compared to the same period in 2023.
Sales in 2024?are trailing behind the balanced market levels of 2019 and are comparable to?those last seen in 2013. While interest rates play a role, growing affordability concerns are making buyers increasingly cautious. According to the latest data from Statistics Canada,?the median household income for a family in Kelowna was $111,020 in 2022. With a 10% down payment and no other significant expenses,?families could afford a mortgage of up to $742,179, underscoring the substantial housing affordability challenges in the area.
The market has definitely shifted back to a buyer's market for the first time since 2013, following nearly a decade of seller dominance. This change is driven by reduced demand for million-dollar homes, now unaffordable for many, and an oversupply of properties initially intended for short-term rentals. The provincial ban on short-term rentals has made it challenging for owners to keep these properties.?However, demand remains strong for affordable homes priced between $400,000 and $800,000,?particularly in the "missing middle" segment, including single-family homes, condos, and townhomes, which are selling quicker due to high demand.
For detailed current real estate statistics, please see charts below.?
Wishing you a delightful and restful August—hopefully filled with some refreshing lake days ahead!
Warmest wishes,
Annette with Stephanie and Ed
Quote of the day:?The future belongs to those who believe in the beauty of their dreams.
Okanagan’s best website to get the latest listings:??www.moveokanagan.com
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Move Okanagan Group – serving Kelowna – Lake Country – Vernon – Silver Star - South Okanagan
Based on MLS??active residential listings taken & sold units as reported by Association of Interior Realtors??in 2024 and YTD July 2024 for Central Okanagan.