Kelowna Real Estate Market 2024: Insights and Trends
Total sales in 2024 so far have reached 4,081 as of December 11, 2024. In comparison, the total number of sales in 2021 was8,211 on the MLS. This means 2024 has seen only half the amount of listings sold compared to 2021. However, 2021 was an anomaly; it was still 42% higher than the current 10-year average of 5,748 sales. Compared to this average, 2024has experienced approximately 29% fewer sales.
For single-family homes, 2024 is set to become the year with the lowest number of total sales in the last decade. With only 1,727single-family home sales so far, this year is trailing behind 2023, which had1,924 sales, and 2019, which saw 2,247 sales. To say the least, it has been a challenging year for many home sellers.
Despite the low sales numbers, the number of active listings on the market has increased. Currently, there are 1,351 active listings, and so far in December, 84 listings have been removed from the market. For this time of year, the inventory is 58% higher than the seasonal norm.
Are high interest rates to blame for the drop in sales? While it’s tough to pinpoint a single cause, the data suggests consumer confidence is improving. Recent months have seen a rise in sales activity, up compared to the same period last year.
Interest rates alone aren’t the full story. Zoning changes, updated mortgage rules, and numerous Federal and Provincial legislation changes and taxes are reshaping the housing market. Consumers need time to understand these changes and their potential implications. With the exception of the $1M+ range, the most active price range in 2024 has been $800,000–$900,000, followed closely by $700,000–$800,000.
A shift may occur in the new year with mortgage changes effective December 15th. Properties over $1M can now be mortgage insured without requiring a 20% down payment.
Depending on your perspective, 2024 may appear to favor homebuyers. Increased inventory might lead to further price adjustments. While prices have declined from their 2022 peak, real estate remains a long-term investment. On average, homeowners move six times in their lives, making it essential to consider long-term trends.
Over the past decade, home prices have shown remarkable growth even with the recent softening.
For home sellers who purchased before 2020, built-up equity offers flexibility and more options when selling. Looking ahead to 2025, declining interest rates, improved mortgage accessibility, and rising market activity are promising signs. Compared to 2023, sales in October 2024 rose 56%, and November saw a 12% increase, signaling growing consumer confidence.
For buyers waiting for the bottom, we may be near or at that point. Federal interventions aim to create a soft landing. Today’s jumbo rate cut of 0.5% underscores efforts to make mortgages more affordable and accessible, which typically increases demand.
If you have thought about buying, selling or doing both in 2025, with the shifting market planning is an important step, reach out to get a personalized plan based on your situation and overall objectives.
Let us know if there is anything we can ever do you for you. Please feel free to reach out.
Mark & Maddie Coons
📞 778-744-0872
📧 [email protected]
