In July 2018, Knew Realty Research opened discussions with over 30 sales teams marketing 36 single family (SF) developments within the communities of West Kelowna, Kelowna, Lake Country and Vernon. Additionally, our teams hit the hot and dusty roads of over 75 development phases to note the construction status of nearly 2500 single family lots. Today, Knew is excited to announce that we have completed the field research components of our second annual Single Family Lot Count of the Central and North Okanagan areas!
In total, Knew counted 979 lots available for immediate to quick single-family home development in July 2018 (down -32% from 1425 in July 2017). This included 747 serviced but empty lots (-32%) and 232 servicing single family lots (-30%).
While a -32% drop in supply might seem large for just one year, it is an adjustment that is inline with recent changes in the demand for lots. Over the same period, Knew has noted that the average number of monthly single-family permits issued across Okanagan area suburbs has fallen from 80 units to 52 (January to August numbers only). So comparatively, 2017 and 2018 lot supply levels both represented ~ 18 to 19 months worth of lot supply when compared to their respective demand measures.
Keeping supplies well matched to demands will help ensure that there are little to no downward price pressures on the 337 single family development lots that were marketing for sale through developers in July 2018 (down from 434 in July 2017). Currently, these lots can be purchased in a price range of $169,000 to $1,299,000, or on average for $344,277.