As I am reading various news and market updates about Real Estate in BC and in Canada, they are regularly referring to 'Buyers Markets', 'Sellers Markets' and 'Balanced Markets'.
This article is designed to help you identify the market conditions in your area and to give you a report on the present state of the Kelowna Real Estate Market, as of February 2011.
Buyers Market
When we talk about it being a 'Buyers Market', typically the following market conditions are present -:
1. There is more than 6 months inventory / listings available on the market (I will explain how this is calculated later).
2. Inventory numbers are higher when compared to previous years
3. Interest rates are low, allowing greater affordability.
4. The number of days a property is on the market are longer than in previous years.
5. The number of property sales are falling, or well down on previous years.
6. The median sales prices are falling.(*Median - In real estate statistics, is the 'middle' home price, in the sense that half the prices are below and half are above the median. It is regarded as more accurate, as the 'average price' can be influenced by one very high or low sale.)
7. Fewer property showings, as there are less buyers looking.
Sellers Market
1. There is less than 6 months inventory available on the market.
2. Inventory numbers are lower when compared to previous years
3. Interest rates are higher or rising.
4. The number of days a property is on the market are less than in previous years.
5. The number of property sales are rising, or well up on previous years.
6. The median sales prices are rising.
7. High numbers of property showings as there are more buyers looking, resulting in multiple offers on a property.
8. Properties selling for higher than the list price.
Balanced Market
1. There is between 3 and 6 months inventory available on the market.
2. Inventory numbers are similar to previous average years
3. Interest rates are stable.
4. Properties are selling within 30 to 45 days of listing.
5. The number of property sales are stable when compared to previous average years.
6. The median sales prices are stable compared to previous average years.
7. Steady number of property showings
8. Properties selling for around list price.
What is the state of the Kelowna Real Estate Market and how do we calculate it?
At the present time Kelowna remains very much in a 'Buyers Market".
If we look at the figures as at the end of January 2011 for the various sectors -:
Single Family Homes - Total Current Listings 1227 Sales in January 94 - divide the sales into the listings and the current number of months inventory is 13.05 months. Days to Sell 110.
Condos - Total Current Listings 855 Sales in January 33 - the current number of months inventory is 25.9 months. Days to sell 153
Townhomes - Total Current Listings 440 Sales in January 27 - the current number of months inventory is 16.3 months. Days to sell 111
Lots - Total Current Listings 651 Sales in January 9 - the current number of months inventory is 72.3 months. Days to Sell 188.
Manufactured Homes - Total Current Listings 185 Sales in January 10 - the current number of months inventory is 18.5 months. Days to Sell 116
One interesting point to note here, is the actual days the units are taking to sell are not as high as you would expect to see, with this amount of inventory. A possible reason for this may be that there are a number of 'well priced' listing, which are selling quickly.
Kind Regards
Trish Cenci
Tel 250 864 1707
Coldwell Banker Horizon Realty
