KELOWNA REAL ESTATE MARKET SHOWING SIGNS OF TRANSITIONING TO A SELLERS' MARKET

Since mid 2008, the Central Okanagan real estate market has been a buyers' market, with July single family housing inventories peaking at 1833 units in July 2010, which amounted to 10.4 months' inventory, based on the previous 4 months sales which averaged 177 units per month.  In July 2013, the inventory level was 1537 units, which amounted to less than 6.5 months' inventory, based on the previous 4 months' average sales of 238 units.  Still not a sellers' market yet, but becoming much more balanced. 

However, the sweet spot of the market is homes priced between $300-400,000, compared to an average single family home price of $479,000 in July.  In the past four months there were 303 sales (32% of all market activity) and current inventories are 267 units (17% of inventory) so this represents an inventory level of 3.6 months, based on the past 4 months' sales. 

This segment saw an increase of 26% over the previous year, while the other single family sales increased 16% in the same period.  If this trend continues, we may see a similar scenario to 2001-2002, when sales increased and inventories came down for lower priced properties, as the market turned from a buyers' market to a sellers' market. 

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