Spring jolt for Kelowna real estate sales and prices

Better late than never.

The traditional spring spike in home sales and prices finally arrived in April.

"After the lukewarm activity in March, it's nice to see that the bustling spring market has arrived," said Kaytee Sharun, president of the 2,600-member Association of Interior Realtors.

"While it has taken longer to arrive than usual, this spring activity is indicative of a normal seasonal real estate market."

That translates to 189 sales of single-family homes in the Central Okanagan last month, up from 131 sales in March.

The benchmark selling price of a typical single-family home in April was $1,009,000, up from $986,600 in March.

However, compared to the same month last year, both sales and prices were down slightly, with 2.6% and 3.6% drops, respectively.

Generally, activity is restrained and some potential buyers and sellers are sitting on the fence waiting for mortgage interest rates to come down before they spring into action.

The record-high benchmark for a single-family home was $1,131,800 in April 2022 as the market boomed post-COVID when interest rates were rock bottom.

In April, 71 townhouses in the Central Okanagan changed hands, up from 60 in March.

The benchmark selling price of a typical townhouse also rose from $719,600 in March to $734,600 in April.

The townhouse benchmark peaked at $829,000 in May 2022.

When it comes to condominiums, the benchmark selling price of a typical unit last month was $508,200, up from $496,000 in March.

Sales also popped, from 81 in March to 110 in April.

However, that 110 is 18% less than April 2023.

It was April 2022 when the condo benchmark was highest at $557,700.

While prices are off-peak, they are still unaffordable for many, especially for potential first-time buyers and especially with the higher mortgage interest rates.

When interest rates slide, more buyers are expected act, likely pushing prices higher and again making the market more unaffordable.

With both sales and prices down compared to the post-pandemic boom, there's been a build up in the inventory of home for sale.

Last month that meant 1,376 single-family homes for sale, 385 townhouses and 715 condos.

Those numbers are all about 45% more than last year.

"After years of having an inventory drought challenging homebuyers, this upswing in listings will come as a relief to buyers as it expands their options making finding a dream home a more viable reality than when limited options may have had them settling for the next best," said Sharun.

"There are numerous factors that could be contributing to the increase of new inventory. It could merely be a case of the season spring market finally hitting its stride; a case of government policies coming into play; or simply due to an adjustment of expectations aligning more with current market conditions."