Navigating the Kelowna Real Estate Market in 2023
The state of the real estate market in Kelowna, Okanagan has been a subject of conversation for the past few years. With several mortgage rate hikes and rising expenses such as groceries, childcare, and other day-to-day costs, both buyers and sellers have become apprehensive about making moves.
The forecast for the Kelowna real estate market for 2024 is a mixed one. While some experts predict that the market will continue to soften with the normalization of inventory levels and a further increase in interest rates, others believe that it will remain resilient. According to the Association of Interior Realtors®, the average residential sale price in Kelowna is expected to rise by 3% from $715,000 in 2023 to $736,000 in 2024.
The cost of purchasing property in Kelowna has risen due to the comparatively low inventory rate. Unfortunately, the lack of available building lots has impeded the construction of newly-built homes, particularly single-family homes. This has created a tight supply situation that is expected to persist, as Kelowna sees an increase in new Canadian residents moving into the city.
The future of the Kelowna real estate market hinges on how these factors evolve in the coming months and years. In 2022, the average residential sale price in Kelowna surged by 10%, from $685,000 in 2021 to $753,000, driven by high demand from both local and out-of-province buyers looking for more space and affordability in the wake of the pandemic. Now that things are starting to settle, buyers and sellers can anticipate a healthier real estate market in Kelowna, one that is more similar to the conditions that prevailed before the pandemic. This is according to RE/MAX Canada News.
For buyers, this shift in the Kelowna real estate market means increased bargaining power, with fewer competitors vying for available properties. Buyers now have more time to locate homes that fit their needs and financial constraints. Interest rates may also become more advantageous for buyers, which could present opportunities for those who have been unable to afford properties in the past or have been waiting for more favourable market conditions.
For sellers, the healthier Kelowna real estate market could signify a return to more conventional selling circumstances. This means that homes may stay on the market for a reasonable period, and buyers may be willing to pay fair market value. In this environment, sellers may want to invest more effort into staging and marketing their homes to distinguish them from other properties available for sale.
As the market continues to evolve, it is crucial for both buyers and sellers to stay informed and adapt to changing conditions. As a Realtor® with over 16 years of experience in Kelowna real estate, I would be happy to help you navigate this evolving market. My personalized approach to each transaction ensures that your unique needs are met and that you receive the best possible outcome. I would be honoured to assist you in achieving your real estate goals.Posted by Gillian Krol on