Kelowna Real Estate News

January 2025 Edition

 OVERVIEW

Where is Kelowna’s market headed for 2025? It’s a question that everyone wants to know.
Surprisingly, we had a strong October and December for sales when compared to our 10-year average. Listings, while still high, seem to be maintaining, and we havn’t experienced a big flood of inventory which is positive news.

Let’s break down the stats together on this video and see where this market is really headed

 

My biggest concern is our vacancy rate, and the sheer number of rental units currently under construction. Let’s take a look at these two graphs:

 

This is the number of rental units under construction in Kelowna over the last 10 years. There is a shockingly steep climb on the right side. That’s 3,200 units currently under construction at the end of 2024.

Our vacancy rate has climbed from 1.3% in 2023 to 3.8% in 2024. This graph above shows the 25 year relationship between property sales and vacancy rate. Notice how they’re inversely correlated? Watch my video breakdown of where 2025 is headed for more.
 

 

 SINGLE FAMILY HOMES

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 Benchmark Price Trend (3 months)
11% of listings selling 
Most active market is under $1.3M

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I was impressed with December’s sales numbers! For the second time in 3 months, we’ve had sales come reasonably close to our 10-year average, that’s great news! With 116 sales in December (vs 130 average), that was 40% better than the last 2 years. It’s a very positive way to end out 2024.
The listing inventory is following it’s seasonal norms as they taper off this time of year, but with 1,019 listings, it’s the highest we’ve seen in 12 years, keeping us 50% over the 10-year average.
The benchmark price has oddly been slightly rising over the last 3 months, will be something to keep an eye on.

Luxury Market ($2M+)
4 homes sold over $2M in December, ranging from $2.1 to $2.4M.
With 141 active listings, it remains a tough market.
 

 TOWNHOMES 

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 Benchmark Price Trend (3 months)
12% of listings selling
Most active market is under $800K

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Towwnhome sales continue perform admirably, at only 20% under our 10-year average. They outperformed the last 2 years and I was even in multiple offers last week on a unit.
As with single family homes, the excess inventory is where the problem lies with 40% more inventory that we should have (compared to our 10-year average).
The benchmark price has itched higher oddly enough, and is the highest it’s ever been in a December, and has been slowly climbing since October. We’ll have to keep an eye on that.
 

 CONDOS

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 Benchmark Price Trend (3 months)
12% of listings selling 
Most active market is under $550K

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Condo sales continue to surprise, with December sales 50% better than this time last year, and in line with our 10-year average! Incredible! However, the listing inventory is what is dragging the market down, with 60% more listings than we should be having this time of year. This is the highest number of listings we’ve seen in 12 years for a December, 20% more than last year. I worry the inventory will continue to grow this year as more projects come to completion.

Thinking of making a MOVE? 

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The bright suite features an inviting kitchen with butcher block countertops, gas range, soft close cabinets and tile backsplash. The supplementary baseboard heater in the living room gives extra warmth on cold winter days. The suite is complete with 2 bedrooms (no closet in 2nd bedroom), 3 piece bathroom as well as a large laundry and storage area.

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Major Cities Report

Victoria

2024 Victoria Real Estate Market Year In Review

A grand total of 6,893 properties sold over the course of 2024, an 11 per cent increase from the 6,207 sold in 2023.

“2024 was a fairly calm year for local real estate,” said 2024 Victoria Real Estate Board Chair Laurie Lidstone. “And this is what we like to see for consumers! It has been a year of stability and predictability. Prices have been relatively level for the past two years now, which has made it easier for buyers and sellers to navigate transactions with confidence. Even though 2024 had more months with over 3,000 listings than we have had in many years, we do continue to see low inventory levels when compared to long term averages.”

There were 2,290 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of December 2024, a decrease of 19.3 per cent compared to the previous month of November but a 7.4 per cent increase from the 2,132 active listings for sale at the end of December 2023.
Source

Vancouver

Home sales registered on the Multiple Listing Service® in Metro Vancouver rose over thirty per cent in December, compared to the previous year, signaling strengthening demand-side momentum to close out 2024.

“Looking back on 2024, it could best be described as a pivot year for the market after experiencing such dramatic increases in mortgage rates in the preceding years. With borrowing costs now firmly on the decline, buyers have started to show up in numbers after somewhat of a hiatus – and this renewed strength is now clearly visible in the more recent monthly data.” says Andrew Lis, GVR director of economics and data analytics.

The Greater Vancouver REALTORS® reports that residential sales in the region totaled 26,561 in 2024, a 1.2 per cent increase from the 26,249 sales recorded in 2023, and a 9.2 per cent decrease from the 29,261 sales in 2022.
Source

Calgary

2024 Marks Another Strong Year For Sales And Price Growth

The year ended with 1,322 sales in December, a three per cent decline over last year, but nearly 20 per cent higher than long-term trends. Overall sales in 2024 were just shy of last year’s levels, as gains for higher-priced homes offset pullbacks in the lower price ranges caused by supply challenges.

“Population gains over the past several years have supported sales activity that has outperformed long-term trends. In 2024, sales would likely have been higher if there was more supply choice, especially in the lower price ranges,” said Ann-Marie Lurie, Chief Economist at CREB®. “That being said, we did start to see shifts occurring in the market in the second half of the year as supply levels started to improve for higher priced homes.” 

As of December, there were 2,989 units available in inventory, still below long-term trends for the month but a significant improvement over the lower levels reported last December and levels reported early this year.
Source

Edmonton

Low Inventory Sets Stage For Continued Seller’s Market

There were a total of 1,428 residential unit sales in the Greater Edmonton Area (GEA) real estate market during December 2024, a 25.4% decrease from November 2024 and 17.2% higher than December 2023. New residential listings amounted to 1,367, down 33.3% from November 2024 and 7.3% from December 2023. Overall inventory in the GEA decreased 22.5% month-over-month and 24.6% year-over-year.

“It’s no surprise that we saw a decrease in the number of total residential new listings and unit sales month-over-month,” says REALTORS® Association of Edmonton 2024 Board Chair Melanie Boles. “Despite this typical cooling off period of the market, we’re still feeling encouraged about the year ahead as average prices and unit sales were still ahead from this time last year.”

Total residential average prices came in at $435,549, reporting no change from the previous month, but reflected an overall increase of 12.2% compared to December 2023.
Source

Toronto

Housing Market Gets More Affordable In 2024 With Lower Rates And Prices

The Greater Toronto Area (GTA) housing market experienced a transitionary year in 2024. Annual sales were up slightly compared to 2023, and new listings were up significantly year-over-year. Buyers benefited from substantial negotiating power on price, especially in the condominium apartment market. Average selling prices in 2024 dipped in comparison to 2023 as a result.

“Borrowing costs were top of mind for home buyers in 2024. High interest rates presented significant affordability hurdles and kept home sales well below the norm. The housing market did benefit from substantial Bank of Canada rate cuts in the second half of the year, including two large back-to-back reductions. All else being equal, further rate cuts in 2025 and home prices remaining below their historic peaks should result in improved market conditions over the next 12 months,” said the Toronto Regional Real Estate Board (TRREB) President Elechia Barry-Sproule.

GTA home sales amounted to 3,359 in December 2024 – down slightly from December 2023. New listings were up over the same period, continuing the trend of a well-supplied market. The MLS® Home Price Index Composite Benchmark was up by less than one per cent year-over-year in December. Over the same period, the average price, at $1,067,186, edged lower.
Source