Kelowna housing market stuck in stalemate as prices hold and sales barely move
The benchmark price for a single-family home was $1,057,200 in September, nearly unchanged from August.
KELOWNA — The Kelowna housing market remains stuck in a stalemate with flat prices and low sales, according to new data from the Association of Interior Realtors.
In September, 149 single-family homes sold in the Central Okanagan, a slight increase from 142 in August.
The benchmark selling price for a typical single-family home was essentially unchanged at $1,057,200 in September compared to $1,056,700 in August.
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"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," said Association of Interior Realtors president Ryan Mayne.
The benchmark price for single-family homes hit a record high of $1,131,700 in April 2022.
Of the houses sold in September, the average time on the market was 67 days before it eventually sold.
Overall, sales have plummeted about 40 percent and prices are down between 7 and 18 percent since the market peaked during the post-COVID boom in 2021.
Homes now tend to sit on the market for a couple of months or more before selling, a far cry from the days of bidding wars that drove prices above asking.
The only buyers and sellers are those who must move due to divorce, job transfer or because they have bought another place and are on a deadline, the realtors' association said.
Such a scenario means negotiations can be fierce and sellers may end up discounting the price to secure a buyer.
For townhouses, 46 sold in the Central Okanagan last month, up slightly from 42 in August.
The benchmark selling price for a typical townhouse was similar at $696,700 in September and $698,600 in August.
The townhouse benchmark peaked in May 2022 at $829,000.
Townhomes spend an average of 82 days on the market before selling.
When it comes to condominiums, 83 sold in September in the Central Okanagan, a drop from the 96 that changed hands in August.
Meantime, the benchmark selling price managed to bump up to $496,700 from $465,700 in August.
Condos spend an average of 85 days on the market before selling.
Mayne, who is a realtor with ReMax Kelowna, put a positive spin on the situation.
"Market activity across the Interior is showing early signs of a soft rebound following a challenging few months," he said.
"While broader geopolitical and economic uncertainty continues to make some buyers and sellers hesitant, inventory isn't accumulating, which is helping maintain balanced conditions."
Inflation, the high cost of everything, wages that don't keep up, wars and political upheaval have shaken consumer confidence, especially when it comes to a big purchase like a home.
Your Space Hamilton reported in September that a housing summit warned of a persistent supply gap despite market improvements.
With files from KelownaNow