Happy New Year 2024! Wishing you a fantastic year!Okanagan real estate market experienced a notable downturn in sales in December, witnessing a 26.1% decline in total residential sales last month and a 4.6% decrease compared to the same period last year. The residential median selling prices exhibited a mixed trend, showing improvement for condos but a decline for single-family homes and townhomes.Across all sectors, inventory numbers saw a decrease, marking a challenging scenario for prospective buyers. All sectors have a Buyers market.December 2023 marked a 10-year low for residential real estate sales in the Okanagan.The sluggish pace of showings during the last month was evident, with buyers seemingly directing their focus towards Christmas festivities rather than property transactions.Local buyers constituted the majority, accounting for 57%, with slightly fewer buyers from the Lower Mainland, Alberta and other areas.For detailed Statistics please see charts below.Did you know: The most cities searched online were: 1. Calgary 2. Vancouver 3. Edmonton 4. Halifax 5. MonctonWhat will 2024 bring to our market? Lots of speculations here, we really don’t know what the new Airbnb rule will bring to this market, will it really happen? Will a lot of condos go up for sale in Airbnb buildings? People mortgaged highly as the returns were so good. With people having to re-mortgage, this might not make sense anymore.The recent shift in zoning regulations, allowing single-family lots to accommodate duplexes or 6-plexes, raises questions about the profitability of such ventures. While the potential for increased density is evident, concerns linger regarding the feasibility and profitability given the current high building costs. As the market adapts to these changes, it remains to be seen how investors will navigate the evolving landscape.Optimism for increased market activity in the coming year is buoyed by the hope of declining interest rates. This anticipated shift could contribute to a more dynamic market, with a surge in listings and heightened sales activity. The prospect of a more active market, coupled with potentially lower interest rates, forms the backdrop for a positive outlook on the real estate landscape in 2024.Always working in your best interest and I can’t believe this year will be 30 years I’ve been selling real estate! Best wishes, Annette & StephanieQuote of the Day: Be so busy loving your life that you have no time for hate, regret or fear.
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Move Okanagan Group – serving Kelowna – Lake Country – Vernon – Silver Star
Based on MLS® active residential listings taken & sold units as reported by Association of Interior Realtors® in 2023 and YTD December 2023 for Central Okanagan.