Right Between the Lines
Right Between the Lines
A recent report noted that rent prices in Kelowna are on the decline, with BC showing the greatest rental price decrease in Canada so far. With increased rental supply and rising vacancy levels across the province helping ease pressure on the price of housing, it’s unsurprising to hear that things are trending downward. And while this might read as cause for concern, it’s actually quite the opposite.
Housing markets are made up of various segments that don’t always move in sync. As one segment begins to shift, so must the others, right? Canada Mortgage and Housing Corporation data shows that vacancy rates in the Kelowna area have risen compared to the previous year as new purpose-built rentals entered the market, shifting the overall demand and directly alleviating pressure on the rental market. Since these units were intended for rentals by design, their impact on the buying and selling market is far less significant than you might assume (especially since there hasn’t been this many dedicated rental units built here before, so we’re all still getting used to the idea).
The resale market operates under different conditions. A recent Association of Interior Realtors report shows that sales activity in the Central Okanagan remained in-line with seasonal expectations this spring. With buyers and sellers still active in the market despite shifting inventory and pricing conditions (compared to recent peak years), these signs tell us we’re moving towards more sustainable and stable conditions instead of what might appear as a stale market. And this is where the resale market actually parallels the rental market – stability.
The exception? Well-priced homes are still moving fast despite what the larger data points might say. Within this market where sales activity is stable year over year, the main considerations to note are that average prices are still increasing as available inventory trends downwards. What does this mean for you as a buyer or seller? Well-priced homes are going to move fast! While many sellers are pricing their properties with a ‘hope for the best’ attitude, buyers are remaining patient (like we chatted about in a different blog post recently). So, what sits in-between these? Well-priced properties. Sounds too simple? It just might be…
Additional Reading
The Cost of Waiting
If you haven’t read my latest blog post yet, let’s bring you up to speed. Last month we talked about buyers and sellers both sitting on the fence, with buyers waiting for prices to soften and sellers waiting for stronger demand. But, here's the thing about fences -...
Both Sides of the Fence
March was a really positive start to the spring in the Kelowna housing market, with sales for townhomes, condos and single-family homes all showing increases compared to February. Coupled with this bump in sales activity, average and median prices for single-family...
Return of the Short Term Rental
After plenty of anticipation, short term rental restrictions may finally be changing in Kelowna. The question has recently shifted in a hopeful direction - from a matter of ‘if’ to a matter of ‘when’ - giving us plenty to keep our eyes on in the coming weeks and...
