Kelowna Real Estate News

December 2022 Stats

When we look at 2022 as a whole, it wasn’t too bad.  Total sales were similar to 2018/2019 and listing inventory average was similar to 2016/2017. Comparing year over year for December, the benchmark price of all property segments is down 3%, not so bad! But comparing the year as a whole, or year over year, only gives us a false sense of comfort and isn’t a true representation of the market. However, there are certain small pockets of the market that are still generating excellent activity. In the townhome segment, you’ll read about multiple offers we experienced last week, and a small 1 bedroom condo we listed this week has garnered excellent activity in the first few days. All to say, although slower than expected, the market isn’t dead.

of listings selling 
80% of sales are under $1.2M

Similar to the past few months, the sales numbers are very low. Not like the global economic crisis of 2008, where we saw 66 properties selling in December, but 86 isn’t much when compared to a 10-year December average of 133 sales. With the inventory levels holding steady (in fact even declining) back to our average, prices are holding relatively steady over the winter so far.

16% of listings selling
80% of sales are under $900K

Townhomes took the stage in December with over 16% of the lisings selling, making them the only segment to be (just barely) in a balanced market. This is due to the low amount of inventory, at almost 20% below average. Sales numbers are in line 2012 & 2013 when our market was quite flat, but are also still under the average.
Surprisingly, we encountered multiple offers on a $720,000 townhome this past week in North Glenmore which goes to show how limited inventory there really is out there. 

13% of listings selling 
80% of sales are under $600K

As predicted, the condo market has finally arrived at a buyers’ market which is no surprise. Similar to other segments, the lack is sales is what has slowed them down, as inventory is still quite low (12% under average). 3 sales were over $1M, with the highest at $1.6M on the 14th floor in The Madison downtown.

Thinking of making a MOVE? 

Send us an email or give us a call at 250-868-8000. Colin is always happy to talk to you about whether it makes sense or not for your situation.



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See more photos and 3D walkthrough here

Major Cities Report



The 2022 Victoria Real Estate Market Year In Review

A grand total of 6,804 properties sold over the course of 2022, 32.3 per cent fewer than the 10,052 that sold in 2021. 2022 sales came closest to 2014’s sales year when 6,698 properties were sold.

“We began the year with record low inventory, and with higher than average sales,” says 2022 Victoria Real Estate Board President Karen Dinnie-Smyth. “And then the market changed on a dime. Interest rate increases through the remainder of 2022 signalled the end of low-cost borrowing and pushed buyers to the sidelines. Each time interest rates went up, market activity slowed. As we head into 2023, we continue to see the cost of moving and borrowing money undermine demand. Slower sale activity has resulted in inventory levels rebounding from historic lows, which means there are more opportunities for buyers in our market this year than in recent years.”

A total of 320 properties sold in the Victoria Real Estate Board region this December, 26.9 per cent fewer than the 438 properties sold in December 2021 and a 16.7 per cent decrease from November 2022.



Rising Mortgage Rates Brought Uncertainty And Caution In 2022

After seeing record sales and prices during the pandemic, Metro Vancouver’s* housing market experienced a year of caution in 2022. “The headline story in our market in 2022 was all about inflation and the Bank of Canada’s efforts to bring inflation back to target by rapidly raising the policy rate. This is a story we expect to continue to make headlines into 2023, as inflationary pressures remain persistent across Canada,” Said Andrew Lis, REBGV Director, economics and data analytics

“While the consensus among many economists and forecasters suggests the Bank of Canada may be near the end of this tightening cycle, rates may remain elevated for longer than previously expected since the latest inflation figures aren’t showing signs of abating quickly. We’ll watch the 2023 spring market closely to see if buyers and sellers have adjusted to the higher borrowing-costs and are participating more actively in the market than we have seen over the last 12 months.” says Lis.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,114,300. This represents a 3.3 per cent decrease over December 2021, a 1.5 per cent decrease compared to November 2022, and a 9.8 per cent decrease over the past six months.



2022 Saw Record High Sales And Double Digit Price Growth

December sales eased, however, slowing sales over the second half of 2022 were not enough to offset earlier gains as sales reached a record high of 29,672 units in 2022.

Over the past several months, the pullback in sales was also met with a significant pullback in new listings, causing further declines in inventory levels. As of December, there were 2,214 units available in Inventory, making it the lowest level of inventory reported for December in over a decade.

“Housing market conditions have changed significantly throughout the year, as sales activity slowed following steep rate gains throughout the later part of the year,” said CREB® Chief Economist Ann-Marie Lurie. “However, Calgary continues to report activity that is better than levels seen before the pandemic and higher than long-term trends for the city. At the same time, we have faced persistently low inventory levels, which have prevented a more significant adjustment in home prices this year.”


Residential Unit Sales And Listings Continue To Cool For December

Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for December 2022 decreased 26.1% compared to December 2021 and decreased 22.1% from November 2022.

“The Edmonton real estate market continued to cool into the month of December as listings and sales slowed for the holiday season,” says REALTORS® Association of Edmonton Chair Paul Gravelle. “While we saw substantial changes for residential listings, sales and inventory last month, average prices for single-family homes, condos and duplex remained relatively stable both month-over-month and year-over-year.”

The MLS® Home Price Index (HPI) composite benchmark price* in the GEA came in at $373,200, seeing both a 0.9% decrease from December 2021 and 0.1% from November 2022.



A Look Back At The 2022 GTA Housing Market

The Greater Toronto Area (GTA) housing market experienced a marked adjustment in 2022 compared to record levels in 2021. Existing affordability issues brought about by a lack of housing supply were exacerbated by sustained interest rate hikes by the Bank of Canada.

“While home sales and prices dominated the headlines in 2022, the supply of new listings continued to be an issue as well. The number of homes listed for sale in 2022 was down in comparison to 2021. This helps explain why selling prices have found some support in recent months. Lack of supply has also impacted the rental market. As renting has become more popular in this higher interest rate environment, tighter rental market conditions have translated into double-digit average rent increases,” said TRREB Chief Market Analyst Jason Mercer.

The average selling price for 2022 was $1,189,850 – up 8.6 per cent compared to $1,095,333 in 2021. This growth was based on a strong start to the year, in terms of year-over-year price growth. The pace of growth moderated from the spring of 2022 onwards.

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