November 2019 Kelowna Real Estate Report:
*Click the images to enlarge
Kelowna Real Estate Opinion for Nov 2019
We are well into December now and I love to take the time at the end of the year to reflect on the past 12 months. Each year I make predictions about the market for the coming year and I will do that here today for 2020.
Last December, I predicted a flat market, relatively ‘boring’ with no dramatic rise or fall in any statistic. I called it a soft correction which means it’s a little on the downside but mostly flat. This is exactly what we got in 2019.
Overall, prices inched down a bit here in the Central Okanagan. I also predicted that inventory would rise slightly, which it did (about 5-10%). Sales were predicted to be flat as well. The absorption rate (% of total residential inventory that sells on a monthly basis), decreased slightly.
As you can see, for 2019 overall it has been a very flat market. You can view the 12 month comparison of Nov 2018 to Nov 2019 by clicking here: 12 Month Comparison November 2019 (1).
So, what will happen in 2020?
Basically, we will see more of the same with one slight change. The forces driving the market are charging slightly. There is some uncertainty in the US government, Canadian government and the BC government that is keeping consumer confidence down.
However, banks are counteracting that negativity. Interest rates are historically low again. The new first time home buyer program (see my blog post here), that rolled out in September is being used aggressively. Big cities like Toronto and Vancouver have gone into the recovery leg of their cycle. We are still influenced by the increased buyer activity from the failing Alberta market and people cashing in from the West Coast.
In summary, we will see a relatively flat market for 2020. Instead of calling it a soft correction, I will say it will be a soft recovery. Prices, absorption and sales will rise slightly and inventory will remain constant. It will be a good market but nothing spectacular. That is the Real Estate World according to Rom.
Wishing you and your family a safe and happy holiday season!
