WALKER: Kelowna real estate market is balancing out
Mark Walker is a real estate agent and the broker/owner of Kelowna’s Walker Real Estate.
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August 11, 2018 - 12:00 PM
As a Kelowna real estate agent, one of the most frequent questions I get asked is “how is the market doing?” I’ve noticed people asking with even greater regularity lately.
This is due to some of the stats we are seeing which compare month to month sales for previous years. For the last few months, these figures have shown a decrease in sales, and subsequently an increase in inventory.
July 2018 versus July 2017 was no exception. Indeed, the stats from the Okanagan Mainline Real Estate Board (OMREB) show that property sales in the Central Okanagan were down 30% for last month when compared to the same month for the previous year (476 sales versus 676 sales).
However, this doesn’t mean that the sky is falling. In fact, I believe the Kelowna real estate market is simply balancing out. In the past few years, we have seen some incredible highs and big price increases. For the most part, at least in my opinion, this was driven by high demand and low inventory.
Part of the reason it was so notable was that it was unusual. The market was very hot. Now, it is balancing out. Demand is still strong but market conditions and government interventions (among other factors) have pulled that back a little. This, combined with new developments hitting the market, has led to an increase in inventory.
I’m doubtful as to whether this balancing out will have any kind of significant impact on property prices. In general, the average sale price is typically one of the last indicators to normalize in a market that is balancing out, so time will tell.
If you have any questions about the Kelowna real estate market, please get in touch. I’m always happy to chat about real estate! You can reach the Walker Real Estate Group by calling 250-764-4344.
—Mark Walker is a real estate agent with the Walker Real Estate Group in Kelowna. He is also an Associate Broker at Royal LePage. His team run KelownaProperties.com and KelownaCondos.ca.
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