March 2022 – Is the market Hotter than ever?
In February 2022, we saw a 13% decrease in residential property sales over the previous year, and our total listing inventory dropped by 35% to only 727 listings in total. Average and median prices have continued to climb up monthly – currently the overall average price (all residential property categories combined) is 35% above last year, landing at $950,968. At this time we are still sitting in an exceptionally strong sellers market with some of the lowest inventory levels we have seen!
The table below shows the breakdown on where the 559 total monthly sales came from, and shows the total inventory levels for each property category.
On average, it is taking right around 33 days to sell a home, depending on the property type.
Single Family Home Market Update
In the Single Family Home bracket we saw a sales decrease of nearly 20% over February of last year. Although sales decreased, we are still holding position in a seller’s market when you couple that with the 21% decrease in inventory.
The average price for a Single Family Home in February continued to soar above the Million Dollar mark for the 8th month in a row, coming in at $1,251,713 – that’s a $155,000 price jump over Januarys average price point!
Townhouse Market Update
The townhouse market is also still going strong. A 56% reduction in inventory has led to townhomes making up only 10% of all available listings. The average sale price finished at $767,120 – an increase of 24% over the average from the same month last year.
Condo Market Update
The condo market has seen a small decrease in sales in comparison to this time last year. As with the other home categories we continue to see large decreases in inventory this year over last. The sales decreased by almost 9% while the inventory decreased by 48%!!
Supply & Demand
The months of inventory levels are our best way to determine the strength or weakness of the market…and to recap our benchmarks:
Less than 4 Months of Inventory is a Seller’s Market
4 to 6 Months of Inventory is a Balanced Market
More than 6 Months of Inventory is a Buyer’s Market
We’ve been tracking the Months of Inventory – the graph below outlines how the second month of 2022 went compared to the same time periods in the previous 3 years. You will notice a difference – in 2021 there were 2.1 months of inventory whereas this year we are seeing only 1.3! This means if no new properties were listed, in just over 5 weeks, every single home in Kelowna would be sold and there would be nothing left to buy!
What does all this mean? Is now the time to make a move? I would love to discuss what may be right for you – Please feel free to reach out any time!