Housing Market Update – February 2020

Watch BCREA Chief Economist Brendon Ogmundson discuss the January 2020 statistics.

Click here to visit our YouTube channel. Read the news release here.

For more information, please contact:
Brendon Ogmundson
Chief Economist
Direct: 604.742.2796
Mobile: 604.505.6793
Email: bogmundson@bcrea.bc.ca

Housing market normalizes

“The consensus within the industry is this is a positive outlook for the year ahead and shows signs of the housing market normalizing,” said Okanagan Mainline Real Estate Board president Michael Loewen, a realtor with Royal LePage Kelowna.

“A strong level of demand at the back-end of 2019, backed by an uptick of growth and consumer confidence, has helped push 2020 off to a great start.”

On Thursday, the board released January figures showing 250 residential properties of all kinds (fully-detached, single-family, townhouse, condominium, duplex, mobile home) sold during the month.

That’s a 30% increase in number of sales compared to January 2019.

The average-selling price of fully-detached, single-family home in Kelowna in January was $724,367, a 5% increase from the $688,886 it was at in January 2019.

The average selling price of a townhouse in the city last month was $457,615, down 6.4% from $489,037 in January 2019.

And the average selling price of a condominium last month was $382,445, up 14% from $336,258 in the same month last year.

For last half of 2018 and most of 2019, the local housing market sputtered. Sales softened and average selling price dropped as a four factors impacted the market — tough new mortgage rules, speculation tax and buyers from Vancouver and Alberta drying up.

In 2017, the market boomed with local buyers active and purchasers from Vancouver and Alberta snapping up recreational, second-home, investment and retirement homes in the Okanagan.

That year, sales set a record at 6,682 and the momentum pushed the average selling price of a single-family home to $781,000 in July 2018.

Sales in 2018 plummeted to 4,603 and in November of that year the average selling price of a single-family home plunged to $625,000.

In 2019, sales slipped a bit to 4,569 and the average selling price rebounded somewhat to $704,000.

Stronger activity at the end of 2019 and the continuation into the first month of this year are positive signs, but not a return to the 2017 boom times.

But it is what’s considered normal. Local demand for housing is solid as consumers are confident about their jobs, incomes and the overall economy.

However, buyers from Vancouver and Alberta are fewer and that contributes to the market not overheating.

A normal market also means there’s more balance for both buyer and seller.

Sellers have to price their home competitively to attract buyers and buyers have time to shop around and negotiate.

In 2017’s boom, homes sold quickly, sometimes with multiple offers driving up the price.

That’s unlikely to happen now as homes take an average of 73 days to sell and buyers have the chance to bargain for a deal below list price.

136 – 1675 Penticton Ave in Duncan / Columbia, Penticton is Sold!

Photo Link

Sold

– The single story at 136 – 1675 Penticton Ave has been sold.

Property information

Price dropped on 101 Westview Drive in Wiltse / Valley View, Penticton

Photo Link
Penticton’s top desired neighbourhoods

– Announcing a price drop on 101 Westview Drive, a 3,560 sq. ft., 3 bath, 4 bdrm single story. Now $659,000 CAD. Beautiful well-built
MLS® #162708

Property information

2 1/2 Story For Sale in Apex, Penticton

Photo Link
True mountain experience

•  1,740 sq. ft., 2 bath, 3 bdrm 2 1/2 story – $359,000 CAD. Okanagan lifestyle
MLS® #163415

– Be a part of the Okanagan lifestyle and enjoy a true mountain experience in your ski in-ski out Apex chalet. 1470 sq ft of living space with 3 bedrooms, 2 baths and a 200 sq ft loft the kids will love. The main level features an open concept living, dining and kitchen area with floor to ceiling windows, pool-table, games room and a cozy woodstove that will heat the whole cabin. The lower level has a large storage area, laundry and a sauna to relax you after a day on the slopes. 2 large decks to enjoy the treed privacy and the great outdoors. Come and experience all the recreation possibilities at this amazing mountain resort only 30 minutes from Penticton. All measurements approx.

Property information

Apartment For Sale in Penticton Main North, Penticton

Photo Link
Immaculate

•  928 sq. ft., 2 bath, 2 bdrm apartment – $129,900 CAD. Prime location
MLS® #163365

– Immaculate west facing 2 bedroom, 2 bath condo in prime location. This ground floor unit features an open concept floor plan, in suite laundry and a large master bedroom with walk through closet and 4 piece ensuite. 1 underground heated parking stall. Close to schools, transit and shopping. No age restrictions, 1 pet on approval.

Property information

632-12811 Lakeshore Drive S in Lower Town, Summerland is Sold!

Photo Link

Sold

– The apartment at 632-12811 Lakeshore Drive S has been sold.

Property information

130 – 1675 Penticton Ave in Duncan / Columbia, Penticton is Sold!

Photo Link

Sold

– The single story at 130 – 1675 Penticton Ave has been sold.

Property information

12-166 Power Street in Penticton Main North, Penticton is Sold!

Photo Link

Sold

– The townhouse at 12-166 Power Street has been sold.

Property information

118 – 1675 Penticton Ave in Duncan / Columbia, Penticton is Sold!

Photo Link

Sold

– The single story at 118 – 1675 Penticton Ave has been sold.

Property information