Is the Kelowna housing market actually starting to cool?

Beth McCandry

Three weeks ago, real estate agent Rick Hamer-Jackson put a beautiful, older, but fully renovated home up for sale for $ 950,000.

There were a lot of demonstrations but no offers for the first 48 hours.

“I knew then that the market would gradually adjust from its peak,” said Hamer-Jackson.

“They know you’ve missed the price mark if there’s no offer in the first 48 hours.”

</who>According to ReMax real estate agent Rick Hamer-Jackson, the Kelowna real estate market has adjusted from its high three weeks ago. “Class =” img-responsive “src =” https://www.kelownanow.com/files/files/images/ Rick% 20Hamer-Jackson.jpg “style =” margin: 5px; “/></p> <p>The price was lowered to $ 925,000 and there was still no action.</p> <p>So the house was briefly taken off the market and reintroduced for $ 899,000, received two offers, and sold quickly.</p> <p>“The hot, high days of 90, 60, and even 30 days ago, when just one house was put at a crazy price and a bidding war started and sold for more than the list price, are over,” said Hamer-Jackson.</p> <p>“Pricing has to be more strategic. We can no longer just get a number from the sky.”</p> <p>This turnaround in the market came as a shock.</p> <p>After all, house prices were up 30% over the past year to a peak of $ 880,000 for a single family home, or an average of $ 974,000.</p> <p>The pandemic sparked a shopping spree that drove prices soaring as people once again brought their home to the fore and people moved from Vancouver and Toronto to Kelowna with money to spend.</p> <p>“In any case, massive price increases are gradually easing,” said ReMax broker Colin Krieg.</p> <p>“Have we peaked? Probably not. It’s just easing. There are few offers and sales are strong so it’s still a sellers’ market. In the meantime, there will be price drops and fewer offers when everything is done.” . “</p> <p><img alt=We’re seeing the first signs of easing in the Kelowna real estate market, says ReMax real estate agent Colin Krieg. “Class =” img-responsive “src =” https://www.kelownanow.com/files/files/images/Colin% 20Krieg% 20 (save again) .jpg “style =” margin: 5px; “/>

In addition, both agents mentioned “buyer fatigue”.

Potential buyers caught in the vortex and bidding on half a dozen houses just to get nothing usually take a break.

Plus, up to 45% of shoppers were out of town last year and are now being hampered by COVID-related travel restrictions.

Investors, those who buy tenants and bring them into the home, or those who buy with the expectation of big profits, also tend to wait and see.

There are two schools of thought when it comes to how this is all going to play out.

First, the market is taking a breather, sales will continue to be strong and prices will rise.

This is the option that heralds war.

Second, this is a real adjustment and turning point, and sales and prices can drop as much as 10%.

That’s what Hamer-Jackson expects.

In any case, the market will still be more dynamic than the 10-year average.

Hamer-Jackson mentioned that when you can afford it, it’s always a good time to buy, and buying is the primary residence you will live in for a long time.

He added that November and December are usually the best months to buy a home, as the only active sellers and serious buyers are who will agree on a good deal.

The easing trend is also evident on the residential rental market.

From March through April, average monthly rents for one and two bedroom units decreased slightly to $ 1,480 and $ 1,780, respectively.

Support local journalism by clicking here to make a one-time contribution or by signing up for a small monthly fee. We thank you for your consideration and every contribution you can make.