January 2020 Market Update

JANUARY 2020 – HOW’S THE MARKET?

Happy New Year!

Welcome to the first market update of the new decade!  I hope your January is off to a great start and that the holidays were kind to you.

With 2019 in the books now, I wanted to take a look through the December market stats, to see how last month measured up against December 2018, as well as analyze the numbers for the entire 2019 year vs 2018…2019 was an interesting year for Kelowna real estate!

I’ve decided to switch up the format for this update as well.  The above video has a broad overview of what we’ve seen in the market over the last year as well as a bit of a look into 2020, and then I’ve broken down the market updates into the different property types with separate videos below…so you can watch them all, or simply pay attention to the property category that matters most to you.

There is also some info at the bottom about the Property Tax assessments you will have just received in the mail over the last week or so.  Take a look ๐Ÿ™‚

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MARKET OVERVIEW

In December 2019, we saw a sharp increase in sales over December 2018…a 33% increase!  That, combined with lower inventory numbers, is strong evidence that our market continues to improve, after the sluggish start to the year.  We are well positioned for an active market in 2020.

However, our sales totals for 2019 is almost identical to our 2018 numbers, which was explained in the video above.

โ€‹The following table shows the December 2019 vs December 2018, as well as the 2019 vs 2018 totals for sales, listings, Months of Inventory, and average price info.

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The market continues to be very active, especially for properties priced around the “average price” amounts for each property category.  However, the properties on the higher end of the price spectrum face lots of competition and are subsequently taking a lot longer to sell.  

Should we continue to see positive signs out of the other markets that feed into the Kelowna area (The Lower Mainland predominantly), we could see an uptick there as well, which would be welcomed news by many!

Here are the sales numbers, listing inventory, Months of Inventory, Average prices, and average days to sell for the different property categories for December 2019

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SINGLE FAMILY HOME UPDATE

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TOWNHOUSE MARKET UPDATE

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CONDO MARKET UPDATEย 


SUPPLY AND DEMAND

We’ve been tracking the Months of Inventory levels over the last few years, and as expected, we found ourselves finishing off the year right in the middle where we were in the crazy 2017 market, and the slow finish we had in 2018.  

The pricing trends for anything is determined by Supply vs Demand.  When that comes to real estate, we consider having less than 4 months of inventory on the market a Buyers market, which will see rising prices, fast sale times, competing offers, and low levels of inventory.  A market with more than 6 months of inventory is a Seller’s market, which will see softening prices, longer days on market, and lots of choice for buyers on the market.

Presently, we are between 5-6 months of inventory for most property categories, which indicates a nice, healthy balanced market.  In this type of market, the market conditions don’t favour either side, we see stable pricing, a good supply of inventory, and ample buyers to keep the market moving.

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PROPERTY TAX ASSESSMENTS

You will have just received your property assessment in the mail over the last week or so…overall, the average assessment dropped about 10% over the previous year.  Did the amount of your assessment follow that trend?

In the above video, I share a few reasons why your assessed value may not be accurate.  If you are concerned that the assessed value is out of line with current market, you do have the opportunity to challenge your assessment by clicking here:

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Now, remember, the burden of proof is on the home owner, which means you will need to provide evidence which supports your claim that your assessment is inaccurate…in short, it’s a bit of a pain.

If you have concerns that your assessment is inaccurate, feel free to reach out to me, and we can discuss….and if you do decide to move forward with an appeal, I can assist you there as well.

As always, if there is ever anything I can do to help, please reach out.  I’m always here for you and any awesome people you know that are looking to make a move in the Okanagan.

Stay warm, and we will be in touch again soon!

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