Kelowna Real Estate News

May 2023 Stats

Kelowna’s market continues to perform better than expected in May. The listing inventory is still slightly depressed and sales are climbing. This has pushed ALL segments back into a sellers’ market for the first time in a year.
However, the interest rate increase of 0.25% in June, hasn’t been felt yet. It will have a small impact, but I suspect the market may see a larger impact if there is another rate increase in July.
Compared to a year ago, prices are down between 6-9% depending which segment you are looking at.

 We’ve updated our interactive graph pages to now include the Home Price Index for each segment. You can find them here.


 SINGLE FAMILY HOMES

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26% of listings selling 
80% of sales are under $1.3M

The story continues with listings being 20% under the average. (when we exclude the sparse pandemic times, including pandemic levels, listings are 8% under the average) On the other hand, sales were expected to climb 10% over the previous month (April), instead, they jumped a massive 35% over the previous month. We are still slightly under our 10-year average, however when we exclude the astronomical sales numbers during the pandemic, we far outpaced the 10-year average with 249 sales last month vs 221 average sales (without pandemic numbers). I experienced multiple offers twice in the $900K price range last month with limited inventory to choose from for homes. All in all, May felt quite busy.

Compared to what appears to have been the bottom in February, homes have bounced back with 8% higher prices since then!

However, the market doesn’t feel quite as hot in June as it did in May. Active listings are climbing closer to the averages, and sales are looking like they are slowing down a touch for June, but it’s too soon to say where we are headed.


 TOWNHOMES 

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37% of listings selling
80% of sales are under $800K

Scrolling down, you’ll notice on the ‘List to Sell %’ chart that anything over 25% of the listings selling is in a sellers’ market. 37% is a BIG number and deep into sellers’ territory. This creates multiple offers and even more upward pressure on prices if it’s sustained. However, with only 7 sales over $1M, this segment really falls off after that price point.

Forecasting out, June appears to still be strong!
 

 CONDOS

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30% of listings selling 
80% of sales are under $600K

It was another great month for condos as well, with sales numbers over the 10-year averages (even including the crazy pandemic months). Listings have been staying relatively steady the last few months. Where we would expect listings to have climbed by 20% from February to May, they’ve inched up less than 5%. 

Looking forward, June is shaping up to be just as strong, or even stronger!

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Major Cities Report

Victoria

Spring Market Begins To Grow Just In Time For Summer

A total of 775 properties sold in the Victoria Real Estate Board region this May, 1.8 per cent more than the 761 properties sold in May 2022 and a 21.7 per cent increase from April 2023.

“The month of May marks the highest number of sales we’ve seen since April of last year,” said Victoria Real Estate Board Chair Graden Sol. “While we haven’t seen the number of total sales we would expect in a spring market, the month of May marks the fourth consecutive month with sales higher than the month previous. With momentum building, there’s an indication of consumer optimism in the market heading into June. However, if the ongoing lack of homes for sale persists and inventory is not added, we risk a return to an overheated market with pressure on pricing.”

There were 2,189 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of May 2023, an increase of 7.1 per cent compared to the previous month of April and a 23.3 per cent increase from the 1,776 active listings for sale at the end of May 2022.
Source

Vancouver

While the year started slower than usual, Metro Vancouver’s housing market is showing signs of heating up as summer arrives, with prices increasing for the sixth consecutive month.

“Back in January, few people would have predicted prices to be up as much as they are – ourselves included. Our forecast projected prices to be up modestly in 2023 by about two per cent at year-end. Instead, Metro Vancouver home prices are already up about six per cent or more across all home types at the midway point of the year.” said Andrew Lis, REBGV director of economics and data analytics

Sales of detached homes in May 2023 reached 1,043, a 30.7 per cent increase from the 798 detached sales recorded in May 2022. The benchmark price for a detached home is $1,953,600. This represents a 6.7 per cent decrease from May 2022 and a 1.8 per cent increase compared to April 2023.
Source

Calgary

May Sales Reach A Record High

Thanks to a significant gain in apartment condominium sales, May sales rose to 3,120, a new record high for the month. While the monthly gains have not outweighed earlier declines, this does reflect a shift from the declines reported at the start of the year.

At the same time, we continue to see fewer new listings on the market than last year, causing inventory levels to fall. With a sales-to-new-listings ratio of 85 per cent and months of supply of one month, conditions continue to favor the seller placing further upward pressure on home prices.

Persistently tight market conditions drove further price growth this month. In May, the unadjusted benchmark price reached $557,000, over one per cent higher than last month and nearly three per cent higher than last year’s monthly peak price of $543,000.
Source

Edmonton

“Edmonton Sees Year-Over-Year Growth In Detached Average Price”

Total residential unit sales in the Greater Edmonton Area (GEA) real estate market for May 2023 hit 2,719, decreasing 6.8% compared to May 2022 but increasing 34.4% from April 2023. New residential listings were down 17% year-over-year from May 2022, while also noting an increase of 14.2% from April 2023. Overall inventory in the GEA was down 5.9% from May of last year, and up 2.6% from the previous month.

“We’ve certainly seen the real estate market come to life in the month of May,” says REALTORS® Association of Edmonton 2023 Board Chair Melanie Boles. “Although small, there were improvements in the year-over-year detached average prices as well as row/townhouse and apartment condominium unit sales.”

Total residential average prices hit $420,507, a 1.5% decrease from May 2022, and an increase of 2.8% from April 2023. Detached homes averaged $512,338, a 1.2% year-over-year increase and an increase of 2.3% from April 2023.
Source

Toronto

Strengthening Demand And Lack Of Housing Supply Pushes Up Pricing In The GTA

The Greater Toronto Area (GTA) housing market continued to improve from a sales perspective in May 2023. Unfortunately, the supply of homes for sale did not keep up with the demand for ownership housing. Sales as a share of new listings were up dramatically compared to a year ago. This is a clear signal that competition between buyers increased substantially compared to last year, resulting in the average selling price reaching almost $1.2 million last month.

“The demand for ownership housing has picked up markedly in recent months. Many homebuyers have recalibrated their housing needs in the face of higher borrowing costs and are moving back into the market. In addition, strong rent growth and record population growth on the back of immigration has also supported increased home sales. The supply of listings hasn’t kept up with sales, so we have seen upward pressure on selling prices during the spring,” said TRREB Chief Market Analyst Jason Mercer.

The MLS® Home Price Index (HPI) composite benchmark was down by 6.9 per cent year-over-year in May 2023, but up by 3.2 per cent on a seasonally adjusted monthly basis compared to April 2023.
Source