JUNE 2022 – INVENTORY ON THE RISE: GOOD NEWS FOR BUYERS?
In May 2022, we saw a 28% decrease in residential property sales over the previous year, while our total listing inventory increased by 29% to 1,605 listings in total. Average and median prices have continued to creep lower since last month – now, the overall average price (all residential property categories combined) is standing 10% above the same time last year, landing at $856,106.
The table below shows the breakdown on where the 554 total monthly sales came from, and shows the total inventory levels for each property category.
On average, it is taking right around 27 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 27% coupled with a 72% increase in inventory over May of last year!
The average price for a Single Family Home in May remained above the Million Dollar mark, however we again saw a price decrease in this category, bringing the average price down to $1,139,134.
TOWNHOUSE MARKET UPDATE
The townhouse market is still going strong. Despite a 30% increase in inventory townhomes are still only making up 13% of all available listings. The average sale price finished at $768,155 – an increase of about 17% over the average from the same month last year.
CONDO MARKET UPDATE
The condo market has seen a decrease in sales in comparison to this time last year. Unlike the other home categories, we continue to see decreases in inventory this year over last. The sales decreased by 29% while the inventory decreased by 10%!
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 5th month of 2022 went compared to the same time periods in the previous 3 years. You will see a difference here – in 2021 there were 1.6 months of inventory whereas this year we are seeing 2.9! This means if no new properties were listed, in just over 12 weeks, every home in Kelowna would be sold. Although we are still sitting in a seller’s market at this time, we are seeing a gradual move towards a balanced market.
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!