Kelowna home sales stall as prices hold steady in September
The benchmark price for a single-family home was virtually unchanged from August, while sales saw only a marginal increase.
KELOWNA · The Kelowna housing market showed little movement in September, with prices for single-family homes virtually flat and sales volume remaining low. New data from the Association of Interior Realtors shows the benchmark price for a typical single-family home was $1,057,200, nearly identical to the $1,056,700 recorded in August. Sales of these homes saw a slight uptick to 149 from 142 the previous month. The average single-family home spent 67 days on the market before a sale was finalized.
Association of Interior Realtors president Ryan Mayne described the market as showing early signs of a soft rebound. "Market activity across the Interior is showing early signs of a soft rebound following a challenging few months," said Mayne, who is a realtor with ReMax Kelowna. He noted that broader geopolitical and economic uncertainty continues to make some buyers and sellers hesitant. However, he added that inventory is not accumulating, which helps maintain balanced conditions.
The market has been in a slump since the post-COVID boom of 2021, with overall sales down about 40 percent from their peak. Prices have fallen between 7 and 18 percent from the record highs set in the spring of 2022. The current economic environment, including high inflation and stagnant wages, has eroded consumer confidence for major purchases. Mayne pointed to one positive indicator, stating, "We're seeing that well-priced homes are being picked up relatively quickly, which is an encouraging sign that the market is gradually moving in the right direction." The frenetic pace of sales seen in recent years has disappeared, replaced by a market where properties linger for months. Activity is now largely driven by people who are forced to move because of life events like divorce, job transfers, or having purchased another property. This limited pool of participants can lead to tough negotiations, with sellers sometimes having to accept lower offers to close a deal.
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In other housing categories, townhouse sales in the Central Okanagan increased modestly to 46 units in September from 42 in August. The benchmark price for a townhouse was $696,700, similar to the $698,600 recorded the previous month. Townhomes spent an average of 82 days on the market. The peak price for a typical townhouse was $829,000 in May 2022.
Condo sales declined in September, with 83 units sold compared to 96 in August. The benchmark price for a condominium, however, rose to $496,700 from $465,700 the month before. Condos remained on the market for an average of 85 days. The single-family home benchmark price remains below its all-time high of $1,131,700, which was set in April 2022.
With files from KelownaNow