Two Districts, Products, and Extremes: Central Okanagan Single Family Inventories Reach a 5 Year High in August 2018, While North Okanagan Condo Inventories Remain Near 5 Year Lows

Two Districts, Products, and Extremes: Central Okanagan Single Family Inventories Reach a 5 Year High in August 2018, While North Okanagan Condo Inventories Remain Near 5 Year Lows

The Following is a Quick Analysis of Our Free Interactive (.XLS) Okanagan Housing Market Conditions Report for September 2018

CLICK HERE for the full report (this report comes in .XLS format and is optimized for use on a PC desktop).

 

Highlights from the Central Okanagan OMREB Trading Area

The number of single-family (SF) homes on offer in the MLS system increased for the 7th month in a row in August, surpassing levels that have not been reached since 2014. Conversely, monthly SF sales continued to trend downward in August from their peak last May, and were -18% lower than the previous year. Amidst these surmounting supply pressures, the average price paid for a SF home in August was $687,413 (-6% lower than the comparable 3-month rolling average).

August sales of multi-family (MF) homes were also down significantly by comparison to the previous year (-22% for townhomes to -28% apartment condos), which has continued to be the case since March.

However, MF inventories remained historically moderate by comparison to SF which is helping to keep MF prices relatively more stable on a month-to-month basis. Notably, August inventories of both townhome and apartment condominiums were lower than July levels which is the expected seasonal trend. In August, the average price paid for a townhome and apartment condominium was respectively $505,574 (-1.3% below the comparable 3-month rolling average) and $354,728 (0.6% above the comparable 3-month rolling average).

Overall, August measures of sales-to-new-listing-ratios and months-of-supply metrics for all housing types suggest that the collective Central Okanagan market was under balanced market conditions in August which should help the market avoid any majour sustaining price adjustments in the near term.

Highlights from the North Okanagan OMREB Trading Area

The number of single-family (SF) homes sold through the MLS system in August was -29% lower than the previous year, but generally inline with monthly sales numbers since April. Adjacently, SF inventories for that month remained historically moderate, albeit much higher than the previous year (+38%). Overall, the average price paid for a SF home in August was $483,666 (-2.2% lower than the comparable 3-month rolling average).

August sales of multi-family (MF) products were also down by comparison to the previous year by -6% for townhomes and a jarring -39% for apartment condominiums. However, inventories of apartment condominiums continued to remain at 5-year lows helping to relieve any downward price pressures on apartment condominiums in 2018 to date. Townhome inventories on the other hand are much more moderate. In August, the average price paid for a townhome and apartment condominium was respectively $355,477 (-2.2% below the comparable 3-month rolling average) and $228,545 (12.1% above the comparable 3-month rolling average).

Notably, August measures of sales-to-new-listing-ratios and months-of-supply metrics for all housing types suggest that the collective North Okanagan market should be favouring sellers which should theoretically help drive general property values up in the near term.

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