The Following is a Quick Analysis of Our Free Interactive (.XLS) Okanagan Housing Market Conditions Report for October 2018
CLICK HERE for the full report (this report comes in .XLS format and is optimized for use on a PC desktop).
Key Notes on the Central Okanagan OMREB Trading Area
The total number of homes on offer edged down month-to-month in September for the first time in 2018. This should mark the beginning of a seasonal downward trend in overall inventories that lasts through to December.
That being said, the number of family-style homes (namely single-family and townhome) on offer at the end of September (1685) was roughly 260 listings above what would be considered normal for the month – 260 listings representing about one-months’ worth of family-style home sales in 2018. By contrast, inventories of apartment condos were more in line with historical levels.
The current situation in family-style home inventories has primarily resulted from repeatedly low numbers of monthly sales amidst new listing levels that have been far more moderate year-to-date. In fact, market measures that compare inventory levels to recent demands have shown that the market for family-style homes has been deepening into conditions that should outright favor buyers since July. For apartment condos, these same measures still pointed towards balanced market conditions in September; but have been moving towards a buyers’ market steadily throughout the year.
Regardless of these internal market conditions, home sale prices have remained stable in the second half of 2018. Notably, the average prices paid for single family homes, townhomes and apartment condos all remained in line with their respective overall average price year-to-date; a measure that has increased by $41,000 to ~$720,000 for single family homes (or +6%), $39,000 to ~$496,500 for townhomes (+9%), and $16,000 to ~$350,000 for apartment condos (+5%) on a year-over-year basis.
Notably, the recent stickiness of Central Okanagan home prices is likely attributable to positive movements in the external market factors that affect a consumers’ willingness to pay for what they desire opposed to general conditions within.
As such, anyone betting for the strength of Central Okanagan home prices to continue would be best to begin monitoring overall *economic conditions across the Central Okanagan. Given its current internal real estate market conditions, any notable turbulence in the Central Okanagan’s general economy would result in immediate downward price pressures on properties.
*To review trends specific to these external factors more on check out Knew Realty’s Central Okanagan Housing Economic Indicator Report CLICK HERE
Key Notes on the North Okanagan OMREB Trading Area
Sales of family-style homes (namely single-family and townhome) continued a normal seasonal decline in September, but did so against an abnormally high level of new townhome listings. As such, total family-style inventories have continued to remain relatively unchanged on a month-to-month basis since July, though generally moderate based on a historical scale.
Overall, the average price paid for a single-family home and townhome in September was $522,585 (+4% higher than the comparable 3-month rolling average) and $352,210 (+2% higher than the comparable 3-month rolling average) respectively.
September sales of apartment condos remained relatively in line with those of 2016 and 2017’s record setting levels, which has been the general trend to-date. During that month, the average price paid for a condo was $225,396 (-3% under the comparable 3-month rolling average).
Year-to-date, the average price paid for a single-family home, townhome and apartment condo has grown +9%, +7% and +7% respectively.