Market Updates

Happy New Year! And NEW is right – this AIN’T 2021’s Winter Market! Stats are out for Dec’21, and things were sslllloooowwww! (Even for an ordinary December).

My favorite question of the day:

“How’s the Market?” I love that depending on how you read the stats, one could answer either: “Down 3.5%”; or, “Up by 16% – Year to date compared to 2021”! So, does that mean that IF you ignored the huge bubble that occurred Jan-May this past year and took your home value of last December, your home is likely worth 16% more today??? Well… NO. Unfortunately, the average home price continues to rise largely due to inflation effecting the costs to build and thereby the costs to sell NEW; and, more homes selling over the $1M, $2M, and $3M thresholds which is causing the average ‘median’ sale price to increase.

One quick look at these stats should shed some light on the effects of what 9 months of interest rate hikes and the shadow cast by the impending changes to real estate regulations (Cooling Off Period, Foreign Buyers Freeze Out, Strata Changes, Capital Gains changes). We went from selling half of all active listings in a single January month, to selling about 10% of all listings in a December month! Granted, we have almost 300% more listings on the market, which would cause a slow down in any market by simple supply-vs-demand rules; but, to say that it has gone from a Sellers to a Buyers market is putting it mildly. Add to this the power to walk away from any deal within 3 business days… and I think we can say that this January is going to be very interesting! Luckily, we live in one of the most sought after Cities and Regions in Canada! With the new zoning in place in Kelowna, investors and homeowners alike are primed to find new ways to create wealth through being creative about how to increase density while lowering purchase price thresholds. Good job to #Kelowna for streamlining the variance and rezoning process!

Stop asking if your property is an RU6/RU7, and start asking if you are in a Core or Transit Hub, or otherwise!

I am always happy to discuss your real estate needs, and the needs of your family and friends!

#kelownanow #realtorscottkelowna