by Jas Khunkhun
Kelowna Market April 2023
We have never seen a market like 2021 & 2022 in the Okanagan. Everyone forecasted a collapse of the market with COVID coming into the scene. It was so strange to see the opposite happen and no one could have predicted that. The forces at work during COVID and well into 2022 were among others:
Early retirement and baby boomers. A shift in workforce & working online. Increased immigration. Historical low interest rates, Government stimulation and fiscal handouts.
Prices went up at historical rates. Too fast. Multiple bidding. And then came the Bank of Canada rate hikes which immediately put a chill on the market.
Whats happening in 2023 ?
I see a strong 2023 and there are some good reasons for this. As the bank raised rates, many buyers were sitting on the sidelines watching for the rates to ease off. Now I believe these same buyers will reenter the market with rates stablizing and possibly decreasing towards end of 2023. Secondly, this is the start of spring and summer when market is stronger. Weather has a strong part to play, as buyers will venture out to the Okanagan to look for opportunities.
Overall, we are approaching a more balanced market.
If your driving around kelowna, you cant help to notice the large number of highrise cranes in the horizon. I have never seen anything like this in the last 30 plus years of living in kelowna. This market is going nowhere! Canada and the world is taking notice of what was once a hidden gem.
The BC Real Estate Association reports that a total of 7,118 residential unit sales were recorded on the MLS system in March 2023, a decrease of 38.3 per cent from March 2022. The average residential price in BC was $961,451 down 11.6 per cent compared to the average price of close to $1.1 million in March 2022, recorded near the market's peak. The total sales dollar volume was $6.8 billion, representing a 45.5 per cent decrease from the same time last year.
“The BC housing market is currently characterized by slow sales but also still very low levels of listings,” said BCREA Chief Economist Brendon Ogmundson. “Consequently, even though home sales remain about 20 per cent below normal levels for this time of year, the average home price in BC has now risen two months in a row, reaching its highest level since May 2022 as markets tighten due to a lack of supply.”
Active listings in the province are up 25 per cent compared to this time last year but have fallen for the second straight month in the wake of a modest recovery in home sales and continued weak new listings activity.
SOME MORTGAGE RATES I HAVE SEEN
1yr. 5.79%, 2yr. 5.29%, 3yr. 4.99%, 4yr. 4.89%, 5yr. 4.6%
Prime -.8% = 5.9%
Variable prime -1% = 5.7%
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My family has been living in Kelowna since the 1980’s.
This is really important for you as a buyer when selecting the various neighborhoods in Kelowna or the amenities they provide nearby; as a seller it is equally important to make sure you're getting the best price for your home.
I have done just about every real estate deal possible with Kelowna real estate alongside my clients. Majority of my clients are home buyers. But I also have helped my clients to purchase rental properties, commercial land and buildings, farms and even helped clients with purchasing rent to own properties. I have lots of experience in new home construction as well. I am also affiliated with an amazing group of realtors at Sage Executive Group Real Estate. We are not a franchise, but locally born and 60 plus members strong. I now enjoy helping my clients with all of their real estate needs.
I speak English and Punjabi fluently. My team is multi-lingual and have members that also speak Hindi and Mandarin .