The real estate market in Kelowna is currently facing challenges with an increase in listings and a decrease in sales. Realtor Jaime Briggs notes that there is about nine months worth of listing inventory in the area, which is significantly higher compared to previous months. Factors contributing to this include slower sales in the spring and a lackluster tourism season during the summer, which typically attracts potential buyers to the Okanagan region. The number of listings in the area has gone up by 17.8 percent compared to the previous year, while residential sales have dropped by 12 percent. Despite this, prices have only slightly decreased by 2.4 percent on average across all property types.
Chief economist for the B.C. Real Estate Association, Brendon Ogmundson, attributes the lower housing sales in Kelowna to a struggling economy. The region has seen job losses in tourism sectors, affecting the overall economic activity. However, there have been signs of improvement in recent months with sales starting to pick up after reaching a low in the early spring. With an abundance of listings available, Kelowna is now considered a buyer’s market, providing potential buyers with more options and negotiating power. While there are still some categories with tight market conditions, particularly in entry-level products, there is a significant amount of inventory available in the million-plus luxury market.
One contributing factor to the surplus of listings in Kelowna is the new restrictions on short-term rentals that came into effect in May. Many properties, especially condos that were previously used as vacation rentals, are now being listed for sale as owners are unable to continue renting them out on a short-term basis. This influx of properties into the market has added to the inventory available to buyers. Despite the Bank of Canada’s recent interest rate cut by a quarter percentage point, it is not expected to significantly increase buyer interest or spur activity in the market, according to Re/Max Canada and Briggs. The rate cut may not be enough to motivate potential buyers to make purchasing decisions, especially in a market with an excess of listings.
Overall, Kelowna is currently experiencing a challenging real estate market with high inventory levels and low sales activity. The region’s economy has been struggling, particularly in the tourism sector, leading to job losses and reduced economic activity. However, there are signs of improvement with sales starting to pick up in recent months. This has created a buyer’s market in Kelowna, giving potential buyers more options and negotiating power. Factors such as new restrictions on short-term rentals and the Bank of Canada’s recent interest rate cut are also affecting the market, with many property owners looking to sell and limited impact expected on buyer interest. Despite these challenges, the real estate market in Kelowna continues to evolve, and industry experts are closely monitoring the situation for any changes or opportunities that may arise.
