Okanagan Residential Sales: Gradual Downward Trend Continues
KELOWNA, B.C. – November 7, 2016. October saw Okanagan residential sales slow, with 779 sales posted to the MLS® as compared to 884 the previous month, down 12% from September, yet still a 19% increase over October of last year reports the Okanagan Mainline Real Estate Board (OMREB).
“A number of factors suggest a gradual downturn, including reduced sales volume, lower average prices, and longer days on market as compared to previous months,” comments Anthony Bastiaanssen, OMREB President and active REALTOR® in the central Okanagan. However, Bastiaanssen points out that continued low product inventories will likely slow progression towards a market where available housing supply matches buyer demand.
“We are watching to see the effects of shifting market conditions compounded by recent government interventions like the additional 15% property transfer tax for foreign buyers of Lower Mainland property announced by the BC government in August and recent Federal government measures including adjustments to income testing rules for borrowers requiring mortgage insurance.”
While these changes do not affect all buyers, they can have a psychological effect and potentially add to market shifts that are already occurring, notes Bastiaanssen, advising prospective buyers and sellers to consult a real estate professional, stressing the importance of working with one who is experienced with local markets.
“REALTORS are skilled in evaluating market conditions and the factors that can affect particular regions or product segments of interest,” says Bastiaanssen, cautioning buyers and sellers to look beyond general trends to inform their decision-making.
The average MLS® residential price in October was $454,426.72 across the region spanning Peachland to Revelstoke, a 4.9% decrease over September but still a 6.9% increase over the same month last year. Average days to sell across the region was 92 in October, up from 84 in September. New listings were 884 in October, compared to 1118 in September and 1230 in August.
Turning to buyers of Okanagan properties, Bastiaanssen notes that, year over year, most buyers are couples with or without children and empty nesters or retired who are primarily from within the Okanagan and either relocating, moving to a similar-type property, moving up or downsizing.
A September OMREB survey offers a breakdown: those relocating to similar property types are 19.8% of buyers (up from 18.2 in August), move-up buyers are 19.6% (up from 16.2%), those downsizing are 16.8% (up from 13.4%) and first time buyers are 15.2% (down from 18.4%). Those buying for revenue or investment purposes dropped to 12.5% of buyers, from 15.4% in August.
Buyer types include couples without children at 27.7%, two parent families with children at 21.5% and empty nesters or retired at 20.7%, followed by single males, single females and single parents with children.
The largest number of buyers are from within the Okanagan at 52.3%, followed by buyers from the Lower Mainland/Vancouver Island at 21.5% and Alberta at 12.8%. Foreign buyers are 1.6% of the buying population, down from 2.8% in August.
New Listings 140
Current Inventory 294
Sell/Inv. Ratio 46.26%
Days to Sell 51
Average Price $295,697
Median Price $275,500
New Listings 109
Sell/Inv. Ratio 32.07%
Days to Sell 52
Average Price $392,597
Median Price $376,500
New Listings 55
Current Inventory 362
Sell/Inv. Ratio 6.91%
Days to Sell 119
Average Price $282,122
Median Price $219,900
New Listings 254
Sell/Inv. Ratio 34.42%
Days to Sell 50
Average Price $613,148
Median Price $580,000
Ratio of Sales vs Inventory 32.16%
Totals include variables in any given, due to preceding month's collapsed sales and deleted listings. e & oe
For more information and up-to-date market stats, contact Amanda Westrheim at www.TWGKELOWNA.com or call 250-863-9230 or email at Amanda.Westrheim@Century21.ca
The Okanagan Mainline Real Estate Board is comprised of 1,093 member REALTORS® and 91 real estate offices in the Southern Interior of BC. The Board area covers the Central Okanagan, North Okanagan and Shuswap – from Peachland to Revelstoke.
For the most comprehensive source of all real estate listings, home buying and selling information, visit our national websites at: www.realtor.ca and www.icx.ca. To find out about the advantages of using a REALTOR® , check out www.howrealtorshelp.ca.
All OMREB listings are published in the MLS® Real Estate Review and MLS® Commercial Review magazines available at all real estate offices and various locations in the Central Okanagan, North Okanagan, the Shuswap and Revelstoke areas. For comprehensive Board-wide statistical information, please visit our local public site: www.omreb.com