The month of October felt like a wet blanket was laid over the entire valley! However, the damp weather didn’t seem to dampen the real estate market. Our market continues to show its typical downward trend as we head into winter, but sales showed a year over year increase of 29.51%.
Here are some of the highlights:
Listing inventories increased slightly. Listings were 699 for the month of October this year compared to 644 for October 2015, an 8.54% year over year increase.
Sales are still increasing year over year, but the percentages are tightening up as we move into the fall/winter market. Sales were only up 10.67% in October - to 529 in 2016 from 478 sales in 2015.
House prices are up - The price of a single-family home in October 2016 was $613,148 compared to $524,974 in October 2015, an increase of 16.8%.
Houses are selling faster - The average number of days on the market for residential properties has decreased to 50 days in October 2016 from 67 days in October 2015. There continues to be talk in the media about the house prices in Canada and the need to cool down overheated markets although most of the country isn’t experiencing what Toronto is and what Vancouver once was experiencing. On a bright note for Kelowna, the new CHMC Housing Market Outlook just released, shines a very steady light on Kelowna.
The report is reinforcing what we are seeing, that the Kelowna market will continue to see moderate but steady growth for 2017 and 2018.
Here are a couple of highlights from the report:
A significant increase in multiple-family housing starts along with steady construction of single-detached homes will result in a higher number of total housing starts in 2016 with some moderation in 2017 and 2018.
MLS sales will end the year at a new record level followed by some moderation over the forecast horizon. MLS average prices are expected to increase significantly in 2017, partially as a result of a shift towards more high-end sales, followed by more modest gains through 2018.
Population growth is expected to remain steady while employment is expected to pick up, supporting housing demand. As I feel we live in one of the best cities in Canada, we can expect a continued interest in Kelowna and our real estate market.