Dave Collins and Murray Wood – Real Estate Market as of July 2020
David Collins is a Realtor, a friend and a current director of the Peachland Chamber of Commerce. He has served as the President of the Chamber as well.
David has compiled snapshot the July 2020 market place in the central Okanagan for you. We want to make this a regular feature.
Come and stay at the Peachland Eagles Nest B&B while you look for your new home.
Market activity rebounded strongly after the Covid-19 lockdown ended, with July being very strong for sales of single family homes, townhomes and lots. Single family home sales increase 47% versus July of last year. Inventory in July was 19% less than July of last year, and the median price so far this year is $684,000 virus $650,000. So for single family homes we are approaching a seller’s market due to low inventory.
Townhomes experienced a similar post Covid lockdown bump, with sales activity up 38% this July versus last, but the inventory was more balanced, and median price increased from $484,000 (2019 average) to $500,000. Townhouse are still in balanced market territory.
The condo market tells a slightly different story, with sales increasing 10% over last July, but inventory also increasing 10%, and the median price easing. We can see this most easily in West Kelowna, where there are lots of condos for sale and prices are easing in most complexes. Some of this is attributable to the speculation tax and rising strata insurance, making condos as an investment less attractive. And the supply of new condos is rising as well as dedicated rental buildings under construction. This is a buyer’s market. The exception! Peachland. Both Lakeshore Gardens and Eagles View are upscale condos and sales have been good.
Land and lot activity has really exploded. Up 153% in sales versus last July, with inventory down 14% and the median price up to $290,000 on the year and $340,000 just in July. Lots of buyers looking for land to build on or develop. Lots prices are rising.
Macro drivers of the market – money is historically cheap with a 5-year mortgage as low as 1.69%!! Rental rates are increasing making renting part of a house attractive whether short term or long term.
Covid-19 demographic drivers – More people working from home, wanting out of crowded cities. What we are seeing are lots of buyers wanting to leave the lower mainland, Alberta and other parts of Canada and come to the Okanagan to live. And we expect that to continue as another wave of Asians leave Hong Kong, Taiwan and even China buy in the lower mainland and other cities. That provides more people with the opportunity to cash out of the lower mainland and move to a desirable less dense area to live.
Licensed Property Manager
Coldwell Banker Horizon Realty