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.

1 – 101 Clearview Cres in Apex, Penticton is Sold!

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– The apartment at 1 – 101 Clearview Cres has been sold.

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107 – 3146 Paris Street in Penticton South, Penticton is Sold!

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– The townhouse at 107 – 3146 Paris Street has been sold.

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16-360 Strayhorse Road in Apex, Penticton- Sold!

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– The townhouse at 16 – 360 Strayhorse Road has been sold.

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Single Story For Sale in Duncan / Columbia, Penticton

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Home is a must see

•  1,724 sq. ft., 2 bath, 2 bdrm single story – $695,000 CAD. Brand new home
MLS® #163670

– This brand new 1,724 square foot home features 2 bedrooms, 2 bathrooms plus den and is located on the creek in the quaint and peaceful development called “Bridgewater” All homes located in Bridgewater offer hardwood flooring, quartz or granite kitchen & bathroom countertops, stainless steel appliances, all window coverings, central air, xeriscaping design, double attached garage and much more. Bridgewater offers an amazing park like setting alongside trees, walking paths and creek. Only a short distance from: shopping, boutiques, hospital, local restaurants, farmers market and Okanagan Lake Marina. G.S.T. is included in your purchase price. All measurements are approximate.

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Single Story For Sale in Duncan / Columbia, Penticton

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Quaint and peaceful development

•  1,264 sq. ft., 2 bath, 2 bdrm single story – $515,000 CAD. Brand new
MLS® #163673

– This brand new 1,264 square foot home features 2 bedrooms, 2 bathrooms plus den and is located on the creek in the quaint and peaceful development called “Bridgewater” All homes located in Bridgewater offer hardwood flooring, quartz or granite kitchen & bathroom countertops, stainless steel appliances, all window coverings, central air, xeriscaping design, double attached garage and much more. Bridgewater offers an amazing park like setting alongside trees, walking paths and creek. Only a short distance from: shopping, boutiques, hospital, local restaurants, farmers market and Okanagan Lake Marina. G.S.T. is included in your purchase price. All measurements are approximate.

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Single Story For Sale in Duncan / Columbia, Penticton

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Quaint and peaceful development

•  1,400 sq. ft., 2 bath, 2 bdrm single story – $635,000 CAD. Brand new
MLS® #163671

– This brand new 1,400 square foot home features 2 bedrooms, 2 bathrooms plus den and is located on the creek in the quaint and peaceful development called “Bridgewater” All homes located in Bridgewater offer hardwood flooring, quartz or granite kitchen & bathroom countertops, stainless steel appliances, all window coverings, central air, xeriscaping design, double attached garage and much more. Bridgewater offers an amazing park like setting alongside trees, walking paths and creek. Only a short distance from: shopping, boutiques, hospital, local restaurants, farmers market and Okanagan Lake Marina. G.S.T. is included in your purchase price. All measurements are approximate.

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102-270 Douglas Street in Penticton Main North, Penticton is Sold!

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– The 2 story at 102-270 Douglas Street has been sold.

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1130 Spiller Road in Uplands/ Redlands, Penticton is Sold!

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– The 2 story at 1130 Spiller Road has been sold.

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Single Story For Sale in Husula/Westbench/Sage Mesa, Penticton

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Lakeview home

•  1,970 sq. ft., 2 bath, 2 bdrm single story – $389,000 CAD. Desirable Red Wing Resort
MLS® #163642

– CONTINGENT. Lovely 2bd, 2ba 1,970sqft lakeview rancher set in the desirable Red Wing Resort. Home offers spacious kitchen, dining and living space including large family off the kitchen with bright airy windows throughout. Large master bedroom features walk-in closet and 4 piece ensuite, along with a multitude of storage. Private back yard with covered patio is perfect for enjoying the morning paper & coffee or a relaxing family meal. Home also boasts double garage, stunning lakeview and easy care landscaping! Central location close to local shops, restaurants, Okanagan Lake, golf courses and so much more! Lease to 2036. Contact us for more information & your private viewing today!

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