a spring in the step of kelowna’s housing market Ren ewed confidence has shifted the favour of market conditions in Kelowna towards sellers, which in turn is now supporting home prices after a year of declines.
(a months-of-inventory ratio, or MOI, of less than 5 reflects sellers’ conditions; 5-8 MOI reflects balanced conditions; and an MOI over 8 conditions favours buyers). To the extent that MOI remains at the lower end of the spectrum in the coming months, we can expect further price appreciation to be seen. Of course, the trajectory for Kelowna’s housing market, as elsewhere, depends to a large degree on the nature of the macroeconomic environment in which buyers and homeowners operate. While we continue to see current interest rates (including both fixed mortgage rates and the Bank of Canada’s policy rate) as representing peak levels when viewed through the balance of this year and into early next, upcoming data on inflation, the jobs market, and broader economic activity will inform and mould this perspective over the coming months. As we said earlier, we’re excited—for both what the new data will tell us about how our world is evolving, and for the opportunity to bring to you new perspectives and insights into Kelowna’s housing market in the months and years ahead.
Well, this is exciting.
as 31% into early 2022, before being dragged down by rapidly tightening monetary policy. Indeed, after peaking in the spring of 2022 the median sold price of each home type marched downward into the beginning of 2023, with the most recent (3-month average) price of detached homes sitting 16% below last year’s (3-month average) peak, while that of both townhomes and condos is down 11%. That prices have been stabilizing in recent months reflects a degree of buyer confidence that has re-entered the market, despite still- high interest rates: the 435 transactions in April, for example, were 1.6% more than in March, 1.6 times more than in January, and the highest sales count since May 2022 (when 567 homes changed hands). With inventory still constrained—the 2,262 active listings in May were 15% fewer than the past-decade average for the month—market conditions are inching towards favouring sellers, with the region as a whole boasting only 5.2 months of inventory
After many years of producing analyses of, and commentary on, the housing market in Metro Vancouver, rennie intelligence is proud to introduce this first edition of the Kelowna rennie review—a monthly report that presents MLS data for detached homes, townhomes, and condos in the Central Okanagan region, the City of Kelowna, Downtown Kelowna, and West Kelowna. We’ll produce this report and (if you choose) send it right to your inbox each and every month going forward. As with the Vancouver rennie review, we hope you find it to be a consistently useful tool for gauging how the Okanagan’s housing market is evolving each month. And evolve it has. As with virtually all housing markets in North America (and around the globe), Kelowna’s market has been on a wild ride, with year-over-year median sold prices in the Central Okanagan surging by as much
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 May 23, 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.
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