Okanagan Real Estate Market Overview June 2024

Okanagan Real Estate Market Overview June 2024
DATE
July 3, 2024
READING TIME
time

The Okanagan housing market showed a two-sided story in June 2024. We'll delve into the Central and North Okanagan to uncover trends in listings, sales, prices, and more – everything you need to know as a buyer, seller, or investor!

Central Okanagan

The Central Okanagan real estate market in June 2024 showed significant changes, with a notable increase in active listings and a decrease in units sold, reflecting evolving market dynamics.

Market Overview

  • New Listings: Central Okanagan saw 1,334 new listings in June 2024, a 1.37% increase from June 2023.
  • Units Sold: A total of 431 units were sold, a 20.92% decrease compared to 545 units in June 2023.
  • Sales Volume: The total sales volume was $343,698,665, down 26.45% from $467,314,085 in the previous year.
  • List/Sell Ratio: The list-to-sell ratio remained stable at 96.70%, indicating competitive selling conditions.
  • Days to Sell: The average days to sell increased slightly to 61 days from 58 days last year.
  • Active Listings: Active listings increased significantly by 52.19% to 4,272 from 2,807.

Key Highlights by Property Type

  • Residential: 190 units sold, average price $1,062,616, median price $969,500, 1,690 active listings.
  • Condos & Apartments: 98 units sold, average price $452,513, median price $442,000, 804 active listings.
  • Townhouses: 58 units sold, average price $701,298, median price $710,500, 443 active listings.
  • Lots: 8 units sold, average price $511,038, median price $347,450, 364 active listings.

Detailed Analysis

The rise in new listings in the Central Okanagan suggests increased seller confidence, providing more options for buyers. Despite the decline in units sold, stable pricing across most property types indicates resilient demand. The substantial increase in active listings points towards a shift to a buyer's market, offering more choices and potentially better negotiating power for buyers. These factors combined suggest a market where sellers may need to be more competitive, while buyers can take advantage of the increased inventory.

Absorption Rate Analysis

The absorption rate for June 2024 was 10.09%, calculated as the number of units sold (431) divided by the number of active listings (4,272). This indicates that approximately 10.09% of the active listings were sold in June, suggesting a slower market with a higher inventory turnover.

North Okanagan

The North Okanagan real estate market in June 2024 demonstrated steady trends, marked by a modest rise in new listings and an increase in active listings, indicating a stable market environment.

Market Overview

  • New Listings: North Okanagan saw a rise in new listings to 419, a 4.49% increase from June 2023.
  • Units Sold: 183 units were sold, reflecting a 19.03% decrease from 226 units in June 2023.
  • Sales Volume: The total sales volume decreased by 23.34% to $117,133,720 from $152,798,761.
  • List/Sell Ratio: The list-to-sell ratio improved slightly to 98.05%, indicating active market conditions.
  • Days to Sell: The average days to sell increased to 67 days from 60 days, an 11.67% rise.
  • Active Listings: Active listings grew significantly by 35.91% to 1,548 from 1,139.

Key Highlights by Property Type

  • Residential: 82 units sold, average price $710,674, median price $694,375, 529 active listings.
  • Condos & Apartments: 20 units sold, average price $334,785, median price $295,000, 96 active listings.
  • Townhouses: 26 units sold, average price $566,285, median price $511,500, 115 active listings.
  • Lots: 10 units sold, average price $414,090, median price $399,450, 276 active listings.

Detailed Analysis

The increase in new listings and active listings in North Okanagan indicates a healthy market with growing inventory. The higher list/sell ratio suggests sustained seller performance despite the overall decrease in units sold. Extended days on market reflect buyers taking more time to make decisions, likely due to increased inventory. These trends indicate a balanced market with opportunities for both buyers and sellers, where careful pricing and marketing strategies can yield successful transactions.

Absorption Rate Analysis

The absorption rate for June 2024 was 11.82%, calculated as the number of units sold (183) divided by the number of active listings (1,548). This indicates that approximately 11.82% of the active listings were sold in June, suggesting a balanced market with moderate inventory turnover.

May vs. June 2024

In the Central Okanagan, the real estate market saw a slight decrease in activity from May to June 2024. New listings fell by 5.01% from 1,404 in May to 1,334 in June, while the number of units sold dropped by 8.87% from 473 to 431. The total sales volume also experienced a decline of 4.60%, from $360,287,516 in May to $343,698,665 in June. Despite the decrease in sales, the average days to sell increased from 52 days in May to 61 days in June, reflecting a slower market pace. Additionally, active listings rose by 6.78%, indicating a growing inventory.

In the North Okanagan, similar trends were observed. New listings decreased by 11.59% from 474 in May to 419 in June, and units sold dropped by 12.44% from 209 to 183. The sales volume saw a significant reduction of 21.31%, from $148,865,011 in May to $117,133,720 in June. Interestingly, the average days to sell slightly improved from 69 days in May to 67 days in June, suggesting quicker sales despite fewer transactions. Active listings increased by 4.24%, providing more options for buyers in the market.

Comparative Analysis and Market Outlook

The June 2024 real estate statistics for the Central and North Okanagan regions reveal distinct market dynamics. The Central Okanagan experienced a rise in new listings and a decline in sales, suggesting a more competitive market with ample opportunities for buyers. In contrast, the North Okanagan saw a modest increase in listings and active listings, indicating a stable and resilient market environment.

Implications for Stakeholders

  • Buyers: The increased listings and stable prices across the Okanagan provide a wide range of options and potentially better deals due to increased seller competition.
  • Sellers: Sellers may need to adjust their pricing strategies or be prepared for longer selling periods, especially in the Central Okanagan, where the market is becoming more competitive.
  • Investors: The diverse market dynamics present opportunities, particularly in high-demand segments like residential properties and lots. The growth in active listings in the North Okanagan indicates robust investment potential.

The Okanagan real estate market remains active and varied, with each region presenting unique opportunities and challenges. Staying informed about these developments is crucial for making strategic decisions in this evolving market.

Source: Association of Interior REALTORS®

Disclaimer: This information is general in nature and does not constitute professional real estate advice.

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