Real Estate Market Update: A Positive Shift

This series is sponsored by RE/MAX Kelowna


In this month’s episode of The Remax Report, Jerry Redman and Jim Csek discuss the recent signs of improvement in Kelowna’s real estate market. While the market had faced challenges in the past months, there are clear indicators that things are shifting in a more positive direction.

Jerry Redman shares that agents have started to notice more activity, with phone calls increasing and more clients coming into the office. Both Jerry and Jim point out that despite the market still being in a “buyer’s market,” there is a notable uptick in activity, especially in December, which is typically one of the slower months for real estate.

Market Stats for December

The numbers for December show a positive trend compared to the previous year. The average sale price for single-family homes rose by 7.12%, and the number of sales increased by a whopping 41%. Although the number of days homes are staying on the market has increased, with an average of 77 days, the market is still seeing promising activity.

“Prices are up a little bit,” Jerry notes, adding that the inventory levels remain somewhat tight, particularly when you start narrowing down options based on location and type of property. While there are 2,019 homes currently on the market, this number varies depending on specific areas and property types.

Shifting Focus to Townhomes and Condos

Both townhomes and condos are still performing well in Kelowna. The average sale price for townhomes dropped slightly by 1.29%, but sales surged by 37% from last year. With 321 available townhome listings, the market is still competitive, especially for well-priced properties.

Condos also saw an impressive 53% increase in sales over last year, though their average price dropped by 5.52%. This trend, Jerry explains, is partly due to fewer sales during the winter months, which can lead to price fluctuations. Nevertheless, the overall increase in sales indicates positive momentum.

Interest Rates and Mortgage Advice

As the new year approaches, both Jerry and Jim anticipate another small rate cut by the Bank of Canada. They believe a quarter-point drop could further fuel the market, offering buyers more affordable mortgage rates. However, they also highlight the importance of staying informed about rate fluctuations. With a rapidly changing mortgage environment, it’s essential for potential buyers to work with professionals who can help navigate the shifting landscape of fixed and variable rates.

Jerry emphasizes, “It’s really important to talk to a professional mortgage broker to understand what kind of rates you qualify for and what the best options are for your situation.”

Purpose-Built Rentals and Changing Inventory

One notable trend is the increase in purpose-built rental units in Kelowna, which is having a significant impact on the rental market. The vacancy rate, which had been under 1%, has now risen to over 3%, prompting landlords to offer deals like one month’s free rent. While rental prices haven’t yet decreased, these incentives are a sign that the rental market is evolving.

Additionally, Jerry and Jim discuss the city’s focus on addressing the Airbnb situation and its potential impact on tourism and housing. With the growing number of purpose-built rentals coming to market, they suggest that it could offer new opportunities for both buyers and renters.

Final Thoughts

Looking ahead, Jerry and Jim are optimistic about the real estate market’s future, noting that the upcoming spring market will likely bring further opportunities for both buyers and sellers. For those considering a purchase, now may be a great time to start the process, especially with the anticipated interest rate cuts. Whether you’re a first-time buyer or seasoned investor, they recommend connecting with a trusted realtor and mortgage broker to get prepared for the year ahead.

As always, Jerry and Jim remind listeners that local knowledge and professional guidance are key in making informed decisions in this ever-changing market.

Stay tuned for the next episode of The Remax Report to keep up with the latest market trends and expert advice.