Kelowna’s Condo Market is Primed for Buyers

There are 50% more condos on the market in Kelowna— here’s how to make the most of it.

As with most of the Central Okanagan, prices in Kelowna have dipped so buyers looking for an affordably-priced condo are in luck.

Though Kelowna is usually a real estate hotspot in the summer, matching its rising temperatures, this year new listings are in abundance — especially for condos.

“Our condo inventory in Kelowna is up 46% from what it was last year, and the market’s a little bit softer,” says real estate agent Tyrell Boake with Royal LePage, adding, “so we’ve actually seen a price reduction.” Boake says that condominiums were sitting on the market for around $477,000 in July, but were above $500,000 this time last year. That’s a $30,000 price drop buyers can cash in on.

That said, Boake doesn’t think buyers can simply go on autopilot because they have options. Here’s his advice for taking advantage of a supply-saturated condo market.

Stay up to date on key details

“I always recommend a buyer be informed, and it’s nice when you have a buyer who knows almost as much as you do about the market because it makes the transaction go smoother,” Boake tells Wahi. But being in the know isn’t helpful for just current decisions — it also helps buyers stay ahead of the game.

Kelowna’s saturated condo market is one of the side effects of B.C.’s sweeping short-term rental regulations, which prevents investors from using non-primary residence properties as short-term rentals. “[Supply increases are] largely due to investors backing out,” Boake explains. Furthermore, additional rental notice changes requiring landlords to give three months’ notice before new owners can take over could also affect future supply levels, he adds.

As a buyer it might not be necessary to know all of the nuances of Kelowna’s market, but keeping an eye on the latest developments and regulations could influence the decision to buy now or wait for better prices to come.

Keep expectations fluid, like the market

“We’ve had to adjust expectations [when it comes to] days on market. As the market gets slower, product tends to sit on the market longer,” Boake says. While this metric is important to watch for, it can be misleading for buyers used to lower-supply markets.

“Days on market is a misleading statistic because, as of right now, we have an absorption rate of 30%, which means 70% of the [properties] aren’t selling,” Boake states. He notes that a common misconception is thinking a property is defective because it’s been on market for a month or more. This isn’t a good way to think of listings in a buyer’s market, Boake tells Wahi.

“In a seller’s market, where there’s very low inventory, that may be true. Just because it’s been on the market for four to five weeks, it just means the right buyer hasn’t come along,” he says. Days on market can be a “bit of a misnomer, ” Boake explains, given that an agent can remove and relist a property to “reset the clock.” Days on market is a good metric, but it’s not the only one to pay attention to.

Avoid decision paralysis

“The other thing that happens in a market where there’s an abundance of choice is buyers tend to get analysis paralysis. They don’t move as quickly on something that they like, because there’s the chance that they might find something else,”says Boake. This temptation is warranted when there’s a lot of options, but buyers can exacerbate their paralysis in a number of ways.

Boake advises buyers to have a clear understanding of their must-haves, their budget and timeline, as well as their investment goals. That makes it easier for buyers to know when they’ve found the right home, he says.

Part of this process of buyers understanding their needs and wants is communicating them to their REALTOR®. The more the agent is clear on their client’s parameters, the easier it will be to help them find properties that align with their goals and desires.

Boake also recommends not getting caught up in the minutiae of a listing, such as minor price differences between properties or decor. “In the grand scheme of things, that’s not going to make a difference,” he says.
 

“There’s never a ‘right time’ to buy real estate,” Boake believes, “The right time to buy is when you find the home that you like, the payments make sense and you want to buy it.”