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Is Kelowna a buyer or sellers market?

With Kelowna sitting at nearly double the unemployment rate as a year ago (8.0% vs 4.1% in 2019). The main economical indicator would typically call for suppression in purchases, especially large purchases such as homes and vehicles. However, people looking to get away from bigger city centers and rock bottom interest rates pouring some more gasoline on the fire. The housing market would tell a different tale. Looking at the real estate market in Kelowna, over the last few years, the market has moved from a balanced market to a seller's market.  Time will tell if this is a temporary blip, call it pent up demand, or if the low inventory will continue to push the market into the seller's favour in the months that we normally see a cool down for winter. The months of supply takes into account the amount of inventory at the month-end divided by the number of sales for that month.  This will give you the expected months to sell available inventory with everything else being equal(assuming the same demand as the month prior and no new listings come on the market). Looking at the graph last year at the same time the average time it would take to sell the current inventory of homes was sitting at 6 months. This was the month in September where the unemployment rate was 4.1%. Today the months to sell are sitting at 3 months with an 8% unemplyoment rate.  The numbers seem a bit backwards, but consumers are changing their behaviours. The pandemic has caused everyone to rethink their original plans, putting their plan on the backburner for a year to see how this year plays out.  Time will tell where we end up, another shutdown could easily change the makeup. Experts (CMHC and Moody's) are calling for a price decrease next year,  but not releasing why or the basis for their forecast. Regardless, those 'predictions' can change as that story is not ready to be written all we can do is live in the moment and write today's story. Have a great week! Stay Healthy! -Mark 


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