Kelowna BC, Canada - Real Estate - Information and Listings

It’s official: it’s now becomingmore affordable to buy a home in the Central Okanagan!As property listings continue to outpace sales, housing prices in the Central Okanagan have drawnback with the median price for a residential detached home, declining 5.5% since May 2008, from $497,500 to $470,000. Condo median prices dropped substantially by 11.5% from$280,000 in May 2008 to $247,500 in July. Townhouses were more modest at a 4% decline from $365,000 in June 2008 to $350,000 in July. There are more price reductions inproperties listed on the market, which has a leveling impact on the housing price increases experienced earlier this year. July indicates a slight decline in the total active listings on themarket; a departure from recent trends. Sales of existing homes have continued to trend down in 2008, second quarter residential sales declining almost 40 per cent from last year. Withdemand cooling off, the time required to sell a home has edged up. Similarly, the sale price to list price ratio has moved downward, reflecting an increasingly competitive market.

Residential property sales in the Central Okanagan declined 38.23% in July 2008 to 307 from 497 sales recorded in July 2007. New listings for detached, attached and apartmentproperties increased 46.13% to 1,226 in July 2008 compared to July 2007, when 839 units were listed—condos indicated the highest increase of 77% in inventory from 328 new listingsthis July compared to the same month last year. Total inventory on the market this month over July 2007 shows an increase of $106.81%

The Kelowna area saw second quarter housing starts edge down from the same three month period in 2007. Fewer starts of detached housing more than offset an increase inmulti-family construction. Despite this year’s second quarter decline, housing starts, led by the multi-family sector, reached the highest January-June level ever. This year’s first quartersurge in condominium construction carried over into the second quarter. Construction began on eight projects totaling 422 units, including Kelowna’s second high rise building this year.Lower prices relative to the cost of detached housing and lifestyle are the key drivers.With few detached units available for less than $400,000,more first-time buyers have turned to higherdensity housing.

Resort housing and second residences have become the fastest growing segments of Kelowna’s condominium market. Both absorptions and pre sales have begun to moderate.Demand is weakening as consumer confidence declines in the wake of slower economic and employment growth. Rising costs together, with strong competition from an increasingly wellsupplied resale market and growing number of resort developments elsewhere in BC, have taken a bite out of new condominium sales.

For additional information on the Okanagan Real Estate Market, please visit http://www.chriswhitney.ca/