Kelowna’s housing market takes a back seat With residents concerned far more with their homes than with the housing market in August, there was minimal sales activity in the Central Okanagan last month, even by August’s typically modest standards.
of the national job market are showing some weakness: employment growth is slowing, the unemployment rate is rising (from an all-time low), the number of job vacancies continues to shrink, and the job-change rate— historically high during the so-called “Great Resignation” of late-2021/early-2022—has fallen to half of its longer-term average. While on the surface this doesn’t present as good news, the knock-on effect of these labour market changes could be a positive one: to the extent that they are reflective of our higher interest rate environment, they will tend to be disinflationary—and to the extent that they weigh on inflation, then they move us closer to the time when the Bank of Canada can begin bringing borrowing costs back towards recent (pre-pandemic) historical norms. Whether you’re already a homeowner with a mortgage, you’re contemplating purchasing your first home, or you’re looking to invest in recreational property, this is a positive development—something Kelowna could use a little more of.
Due to unprecedented wildfire activity, August was an incredibly challenging month for Kelowna, the broader Central Okanagan region, and indeed, countless communities throughout British Columbia. The McDougall Creek wildfire in particular—which is still burning—has resulted in the loss of, or damage to, 190 structures in Kelowna, West Kelowna, and the surrounding area. Fortunately, the fire is now considered to be under control, and most residents have been able to turn their attention back to their day-to-day routines. Not surprisingly, the Central Okanagan saw muted housing market activity in August. There were 3,502 MLS sales in the region last month—the lowest total for any August going back to 2013. Despite fewer sales, total inventory dipped between July and August, to 2,708 listings, with the 2% month-over-month decline being on
par with the typical 2% drop during these summer months.
This lessening of supply and the relatively larger drop in demand yielded increases in the months-of-inventory metric (MOI) again, to 7.4 in August, compared to 6.5 in July (an MOI of less than 5 reflects a sellers’ market; 5-8 MOI reflects balanced conditions; and an MOI over 8 reflects a buyers’ market). Both condos and townhomes moved into balanced territory in August, with respective MOIs of 5.1 and 5.0, while detached homes actually moved into buyers’ market territory at 8.3. Switching gears to the labour market, almost all signs are pointing to it now responding as one would expect to what has been an unprecedented tightening of monetary policy by the Bank of Canada. With the exception of annual wage gains that remain north of 5%, virtually all other barometers of the health
3 Copyright © 2023 rennie group of companies. All rights reserved. This material may not be reproduced or distributed, in whole or in part, without the prior written permission of the rennie group of companies. Current as of September 19, 2023. All data from Association of Interior Realtors & rennie. While the information and data contained herein has been obtained from sources deemed reliable, accuracy cannot be guaranteed. rennie group of companies does not assume responsibility or liability for any inaccuracies. The recipient of the information should take steps as the recipient may deem necessary to verify the information prior to placing any reliance upon the information. The information contained within this report should not be used as an opinion of value, such opinions should and 2 can be obtained from a rennie and associates advisor. All information is subject to change and any property may be withdrawn from the market at any time without notice or obligation to the recipient from rennie group of companies. E.&O.E.
Made with FlippingBook - professional solution for displaying marketing and sales documents online