Kelowna Real Estate News

November 2023 Stats

Unsurprisingly, Kelowna’s slow market continued through November. We are deep in a buyers market where only the most attractively priced properties are getting any attention from buyers. I don’t expect this to change through the winter until April/May time.

The BC government has effectively eliminated all single family zoning in BC for municipalities over 5,000 people this month. Single family homes can still be built on residential lots, but so can a minimum of 3-6 units depending on location and lot size. 4-plexes for everyone!

• Municipalities have until June 30, 2024 to update their zoning bylaws to comply with the legislation.
• All single family zoning must allow one secondary suite and/or an ADU (accessory dwelling unit, aka carriage home)
• All single family zoning must now allow a minimum of 3 units on a lot size 0.07 ac or less (I’m not exactly sure how that will fit unless they are all small 1 bed units)
• Allow a minimum of 4 units on lots larger than 0.07ac
• Allow a minimum of 6 units if within 400 meters of a bus stop and the lot must be larger than 0.07 ac. Municipalities cannot set minimum parking requirements but could restrict 1 of the units for affordable or special needs requirements.
• Minimum of 3-storey building height 

The full report is available here, see Part 4 – Site Standards on page 65.

This will likely devalue the premium placed on MF1 (formely RU7) zoned properties, as all lots will be zoned in a similar manner 6 months from now. It will create a very different feel, especially in older neighbourhoods where prices are more affordable. There may all of a sudden be no more street parking available due to 4-6 plex developments going in with limited parking included.


 SINGLE FAMILY HOMES

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 Benchmark Price Trend (3 months)
10% of listings selling 
80% of sales are under $1.3M

For the 3rd month in a row, Single Family Homes only had 10% of the listings selling in November, clearly in buyers’ market territory. On the demand side, sales were very low. Our 10-year average points to November averaging 171 sales, where we only saw 108. This edged out 2010 by 4 sales, with the next slowest November being 2008 with a mere 71 sales. The strongest November was in 2020 with almost 300 sales for perspective. Listing inventory is about 1/3 higher than the averages suggest with 1080 homes for sale. Prices are back in line with 2021 based on the Benchmark Price.

The average selling vs list price also caught my attention.  In a balanced market, we typically see sales happening around 2.5% under asking. Single Family homes sold at an average of 4.5% under asking! This is a great time to be making a good deal. Once the market balances out (in the spring?), the opportunity to negotiate hard will subside.


 TOWNHOMES 

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 Benchmark Price Trend (3 months)
10% of listings selling
80% of sales are under $900K

Townhomes were outperforming Single Family Homes the past few months, but have also slipped into the depths of a buyers’ market alongside them. Sales are 40% lower than we’d expect based on averages for this time of year, and listings are 15% higher than they should be. The two most expensive sales were $1.1m in Gallaghers Canyon, and $950K in Sonoma Pines. Surprisingly, 4 out of 34 sales were full price or more – that’s more than 10%!
 

 CONDOS

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 Benchmark Price Trend (3 months)
11% of listings selling 
80% of sales are under $550K

Condos are no longer on the edge of a buyers/balanced market, and are firmly in a buyers’ market like the other two segments. The inventory of listings is the highest it’s been in 10 years, giving buyers lots of options with 581 units available. For perspective, the highest November we had was in 2008 with almost 1,200 listings. The numbers are pointing to us being in a similar market that we had in 2013/2014 when it was relatively flat.

The changing AirBNB (Short Term Rental) rules that are coming into place will change this segment quite a bit and we will likely see more coming online due to the local, Provincial and Federal changes.
Kelowna: No suites or carriage homes allowed, other changes on hold.
Provincial: Can only rent for less than 90 days in your principal residence
Federal: No more writing off expenses for short term rentals

Thinking of making a MOVE? 

Upgraded Studio In Cambridge House

Studio, 1 Bathroom, 309 sqft

1 parking stall and storage locker located a few steps from the unit. Great location just a short walk from Downtown Kelowna, shopping, restaurants and more!

Major Cities Report

Victoria

Slower Minter Markets Can Benefit Buyers and Sellers

A total of 394 properties sold in the Victoria Real Estate Board region this November, a 2.6 per cent increase from the 384 properties sold in November 2022 and a 3.2 per cent decrease from October 2023.

“The longer we are in balanced market conditions, the easier transitions for buyers and sellers become,” said Victoria Real Estate Board Chair Graden Sol. “Local people who planned to sell and move within the Greater Victoria area may have hesitated to list their homes back when record low inventory meant less choice when they became buyers. Now that we see some balance in the market, these people have more inventory to pick from and may feel more confident listing their existing home. And of course, all buyers are having better experiences with more time and more choice.”

There were 2,644 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of November 2023, a decrease of 4.1 per cent compared to the previous month of October and a 25.2 per cent increase from the 2,111 active listings for sale at the end of November 2022.
Source

Vancouver

With one month left in 2023, a steady increase in housing inventory is offering home buyers across Metro Vancouver among the largest selection to choose from since 2021.

“Balanced market conditions typically come with flatter price trends, and that’s what we’ve seen in the market since the summer months. These trends follow a period where prices rose over seven per cent earlier in the year,” said Andrew Lis, REBGV director of economics and data analytics. “You probably won’t find Cyber Monday discounts, but prices have edged lower by a few per cent since the summer. And with most economists expecting mortgage rates to fall modestly in 2024, market conditions for buyers are arguably the most favorable we’ve seen in some time in our market.”

The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales in the region totaled 1,702 in November 2023, a 4.7 per cent increase from the 1,625 sales recorded in November 2022. This was 33 per cent below the 10-year seasonal average (2,538).
Source

Calgary

Increased Listings, Strong Sales, and Price Growth

New listings in November reached 2,227 units, nearly 40 per cent higher than the exceptionally low levels reported last year at this time. Gains in new listings occurred across most price ranges, but the most significant gains occurred from homes priced over $600,000.

Despite the year-over-year jump in new listings, inventory levels remained low thanks to relatively strong sales. With 1,787 sales in November, the sales to new listings ratio remained high at 80 per cent, and the months of supply remained below two months.

“Like other large cities, new listings have been increasing,” said CREB^® Chief Economist Ann-Marie Lurie. “However, in Calgary, the gains have not been enough to change the low inventory situation thanks to strong demand. Our market continues to favour the seller, driving further price growth.”
Source

Edmonton

YEG Real Estate Market Sees Month-over-Month Dip in Sales, Prices, and Inventory Amidst Seasonal Trends

Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for November 2023 came to 1,637, decreasing from October 2023 by 9.1%, but showing an increase of 28.5% over November 2022.

“In real estate, the rhythm of the market often shifts with the seasons. As we transition into the colder months, it’s not uncommon to witness a predictable decrease in available listings. Yet, what’s remarkable about Edmonton’s current housing landscape is the continual demand despite this seasonal ebb,” says REALTORS® Association of Edmonton 2023 Board Chair Melanie Boles. “Buyers continue their search for their dream home, eager to secure properties even amidst a tighter inventory.”

New residential listings amounted to 2,126, which is 20.8% lower than October 2023, and 7.9% higher than November 2022. Overall inventory in the GEA showed decreases of 14.5% from November of last year and 12.9% from October 2023.
Source

Toronto

Elevated Borrowing Costs Taking a Toll on Housing Affordability

High borrowing costs and uncertain economic conditions continued to weigh on Greater Toronto Area (GTA) home sales in November 2023. Sales were down on a year-over-year basis, while listings were up from last year’s trough in supply. With more choice in the market, selling prices remained basically flat year-over-year.

“Home prices have adjusted from their peak in response to higher borrowing costs. This has provided some relief for buyers, from an affordability perspective. As mortgage rates trend lower next year and the population continues to grow at a record pace, expect demand to increase relative to supply. This will eventually lead to renewed growth in home prices,” said TRREB Chief Market Analyst Jason Mercer.

The MLS® Home Price Index Composite benchmark and the average selling price, at $1,082,179, in November 2023 were basically flat in comparison to November 2022. On a seasonally adjusted monthly basis, the MLS® HPI Composite benchmark was down by 1.7 per cent. The average selling price was down 2.2 per cent month-over-month.
Source