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The Okanagan housing market presented a nuanced picture in August 2024, with differing trends in the Central and North Okanagan regions. We'll explore these trends in listings, sales, prices, and more to provide comprehensive insights for buyers, sellers, and investors.
Central Okanagan
The Central Okanagan real estate market in August 2024 displayed some notable shifts, with a decrease in units sold and sales volume, accompanied by a significant increase in active listings.
Market Overview
- New Listings: Central Okanagan saw 1,016 new listings in August 2024, a 12.02% increase from August 2023.
- Units Sold: A total of 341 units were sold, a 10.97% decrease compared to 383 units in August 2023.
- Sales Volume: The total sales volume was $263,941,560, down 13.42% from $304,838,663 in the previous year.
- List/Sell Ratio: The list-to-sell ratio improved slightly to 96.96%, up from 95.07% last year.
- Days to Sell: The average days to sell increased to 63 days from 52 days last year, marking a 20.64% rise.
- Active Listings: Active listings increased significantly by 37.53% to 4,192 from 3,048.
Key Highlights by Property Type
- Residential: 152 units sold, average price $1,031,685, median price $922,250, 1,611 active listings.
- Condos & Apartments: 77 units sold, average price $460,565, median price $430,000, 755 active listings.
- Townhouses: 45 units sold, average price $717,399, median price $704,667, 442 active listings.
- Lots: 5 units sold, average price $505,600, median price $370,000, 386 active listings.
Detailed Analysis
The increase in new listings and active listings in the Central Okanagan suggests a growing inventory, which may be a response to the decreased sales volume. Despite the decline in units sold, the market remains relatively stable with a strong list-to-sell ratio. The rise in average days to sell could indicate that properties are taking longer to move, possibly due to the higher inventory levels, offering buyers more options and potentially more negotiating power.
Absorption Rate Analysis
The absorption rate for August 2024 was 8.13%, calculated as the number of units sold (341) divided by the number of active listings (4,192). This indicates a slower market with higher inventory turnover compared to previous months.
North Okanagan
The North Okanagan real estate market in August 2024 showed a mix of stability and challenges, with a decrease in units sold and a slight increase in sales volume.
Market Overview
- New Listings: North Okanagan saw a decrease in new listings to 293, a 9.57% drop from August 2023.
- Units Sold: 152 units were sold, reflecting a 9.52% decrease from 168 units in August 2023.
- Sales Volume: The total sales volume slightly increased by 3.09% to $111,255,778 from $107,921,388.
- List/Sell Ratio: The list-to-sell ratio decreased slightly to 95.47%, down from 96.83% last year.
- Days to Sell: The average days to sell increased to 69 days from 64 days, a 7.81% rise.
- Active Listings: Active listings grew significantly by 25.20% to 1,535 from 1,226.
Key Highlights by Property Type
- Residential: 79 units sold, average price $811,493, median price $749,000, 488 active listings.
- Condos & Apartments: 15 units sold, average price $320,633, median price $311,000, 83 active listings.
- Townhouses: 11 units sold, average price $534,457, median price $557,750, 108 active listings.
- Lots: 6 units sold, average price $732,317, median price $497,000, 293 active listings.
Detailed Analysis
The North Okanagan market experienced a decrease in new listings and units sold, suggesting a potential cooling in buyer activity. However, the slight increase in sales volume indicates that higher-priced properties may be driving the market. The rise in days to sell and active listings points to a more competitive market environment, with buyers possibly taking more time to make decisions.
Absorption Rate Analysis
The absorption rate for August 2024 was 9.90%, calculated as the number of units sold (152) divided by the number of active listings (1,535). This suggests a balanced market with moderate inventory turnover.
July vs. August 2024
Central Okanagan
In the Central Okanagan, the real estate market saw a decline in activity from July to August 2024. New listings decreased by 11.88% from 1,153 in July to 1,016 in August. The number of units sold dropped by 22.15%, from 438 to 341. The total sales volume also saw a significant decline of 28.07%, from $366,826,569 in July to $263,941,560 in August. The average days to sell increased from 61 days in July to 63 days in August, reflecting a slower market pace. Active listings remained high, indicating a continuing growth in inventory.
North Okanagan
In the North Okanagan, the market also experienced a decline from July to August 2024. New listings decreased by 17.23% from 354 in July to 293 in August. Units sold dropped by 6.75%, from 163 in July to 152 in August. The total sales volume increased slightly by 6.37%, from $104,603,678 in July to $111,255,778 in August, driven by higher average sale prices. The average days to sell increased slightly from 65 days in July to 69 days in August, suggesting a slower pace in the market. Active listings decreased slightly, reflecting a stabilizing inventory.
Comparative Analysis and Market Outlook
The August 2024 real estate statistics for the Central and North Okanagan regions reveal ongoing shifts in market dynamics. The Central Okanagan experienced a notable decline in sales and a significant increase in active listings, suggesting a more competitive environment with opportunities for buyers. In contrast, the North Okanagan showed a slight increase in sales volume despite fewer transactions, indicating resilience in certain market segments.
Implications for Stakeholders
- Buyers: The increase in inventory across both regions provides more options, potentially leading to better deals as sellers adjust to the competitive environment.
- Sellers: Sellers may need to be more strategic with pricing and marketing, especially in the Central Okanagan, where the market is becoming increasingly competitive.
- Investors: The higher average sale prices in the North Okanagan suggest opportunities in specific segments, while the growing inventory in the Central Okanagan indicates potential for value investments.
The Okanagan real estate market continues to evolve, with each region presenting unique challenges and opportunities. Staying informed about these developments is essential for making strategic decisions in this changing landscape.
Source: Association of Interior REALTORS®
Disclaimer: This information is general in nature and does not constitute professional real estate advice. Please contact a professional for specific guidance.
