The Marshall

Acreage

Report | Spring 2024

An up-to-date report with a focus on providing valuable insights into the local farm, acreage, and unique property market in the Okanagan Valley while effectively marketing our listings locally, regionally, nationally, and internationally in both an online and paper format.

We are pleased to announce the evolution of the of “The Marshall Acreage Report”, now brought fully online to increase our exposure across Canada. This is a up-to-date report with a focus on providing valuable insights into the local farm, acreage, and unique property market throughout the Okanagan Valley.

As a local REALTOR® with 5 generations of farming knowledge and extensive experience on the successful purchase and sale of farms, acreages, horticultural, viticultural, estate and unique high-value properties, I continue to look forward to sharing my thoughts in this ever-changing niche market. We will continue to share both factual data, as well as objective and subjective interpretations of market conditions from myself and industry professionals. As we strive to continue to be experts across the Okanagan for these unique properties, we hope this report is useful to you in some manner. My direct line at 250-470-2388 is always open if you wish to have a conversation about the market.

This report, along with print advertising, professional content creation, and use of photography/videography are just some of the tools I use to successfully market and sell some of the most notable acreage, farm and unique properties throughout the Okanagan.

As we progress towards the Summer of 2024, I look forward to assisting the smallest landowners, all the way up to the largest ones, navigate through the ever-changing market. I appreciate my clients’ continued support and trust in assisting them on some of the largest transactions of their lives, which allowed me to be ranked as #2 in British Columbia for production within the RE/MAX organization, and top 100 out of its 144,000+ agents.

Personal Real Estate Corporation, BCOM, REALTOR® and Associate Broker RE/MAX Kelowna
#1 Individual REALTOR® at RE/MAX Kelowna for 2021 + 2022

Welcome

Acreages

01
Market Report

Acreages

The acreage and estate market has seen some activity over the last quarter, but as a whole, they are not great sales to see.

There is a trend that sellers who are motivated to sell are leading the pack, and we are seeing continued price decreases that are resulting in sales occurring. A good example was a sale that was previously listed in the high $4,000,000 point before selling at $3,100,000, which was deemed as a “good enough” number for a seller.

This is a continued trend where sellers who wish to sell are being more tolerant on low-ball offers, and some deals are finally sticking together. This has definitely led to some negative pricing pressures, as buyers get the idea that all sellers are suddenly willing to drop a million-plus on their asking price, which is not a reasonable expectation.

That being said, there has been some “normal” sales happening in the $5,000,000+ range, with offers being thrown out with greater frequency than what I have seen over the past few quarters, so it definitely is promising to see some increased levels of activity

Sellers who are motivated to sell are leading the pack, and we are seeing continued price decreases

Scott Marshall

Acreages

02
Okanagan Statistics

Okanagan Acreages

Okanagan Acreages

Similar to last quarter, Buyers continue to be quite price sensitive, with a continued desire to find a “deal”.

With a fair amount of supply available for sale, we have really seen increased competition amongst sellers to try and be the one sale that occurs when a buyer is looking at, and weighing, their respective options.

Buyers are continuing to have more strength than sellers at this time in the market. There is a continuance of negative pricing pressures for sellers at the moment, and we really need to see more sales coming through to start to see a turn in the market. Lower offers continue to be written, and the pricing decreases off our pricing peak in 2022 has continued to be realized. After seeing how the spring market performed, I think we still have a little bit more to decrease in pricing before we start to see sales increase. A fundamental note to watch will be interest rates; I view it as very important to see at least a stabilization in interest rates as we continue through 2024 in order to see some strength in this sector of the market. Increasing interest rates would continue to have a very negative impact for acreage and estate property owners.

Buyers continue to have more strength than sellers. There is a large supply of estate style properties out there, and what we are seeing is many properties sitting 200+ days-on-market with limited showing activity.

Lake Country Acreage Prices
-10%
Spring 2024
Kelowna Acreage Prices
-5%
Spring 2024
Vernon Acreage Prices
-5%
Spring 2024

However, every once in a while, we will then see a property listed that suddenly sells within just a few weeks on market.

This proves that for many purchasers, they are willing to wait until the right high-quality product is available, and will not hesitate to jump on it immediately. I have my own buyers in this exact same situation to where they are looking in the $5,000,000+ range, but require an extremely specialized acreage/estate product with a certain home, style, land-use, etc.

Raw land in particular has had some difficulties, as conservative lending has made for very high down payment requirements on land that has made it nearly unobtainable for most purchasers. Interest rates and more lenient lending will be required to see some healthier sales activity in this sector.

The market, similar to the last few quarters, has been slow. It is great to see some sales activity, albeit not all promising due to the pricing not being spectacular. I expect this spring to be more promising than the last year, as we now have definitively stabilized interest rates, and offers seem to be thrown out with more frequency and willingness. I believe that this year will be a much better one than last year for selling high quality acreages and estates.

*Please note that the pricing and sales numbers above are based on interpretation of market data and are subjective in nature. For farmland and acreages, there is lower sales volume on the MLS than that in the typical real estate sectors, and many transactions that we handle are done privately off of the MLS. These numbers are drawn from my own experience in the sector and through consultation of various industry professionals.

Lake Country Acreage Sales
-35%
Spring 2024
Kelowna Acreage Sales
-15%
Spring 2024
Vernon Acreage Sales
-25%
Spring 2024
Acreages

03
Notable Sales

Farmland

04
Market Report

Farmland Market Report

The farmland market has continued its sluggish pace from 2023 so far in 2024.

Interest rates have stabilized at a relatively high rate, and the winter we just went through seems to have been a harsh one. Pertaining to interest rates, current farmland pricing across the valley, especially with listing prices, has created a very difficult environment for farmers to be able to purchase a property with reasonable financing costs. Until interest rates come down, or pricing comes down significantly, I do not expect the farmland market to suddenly increase in sales activity

The cold snap in January will have a negative impact on the farmland market. Talking to both farmers and industry professionals, there is a general consensus that the tree fruit and vineyard markets will have a rough crop year. In some cases, especially further down south, the damage is so severe to the point of experiencing vine and tree loss. This seems especially true in the vineyard/winery industry, as I have seen 100% death of vines in some vineyards, which ultimately will result in the replanting and loss of crop for the next few years. I have also noticed a significant uptick in wineries for sale, both publicly and privately, which is not surprising if the financial situation for vendors has become more difficult. With last year being a rougher year as well, I am unsure if certain owners will be able to absorb the financial strain of replanting multiple years in a row. I anticipate that there will be more land coming for sale based on this winter damage, and ultimately, we could see a transition of vineyard land being turned into tree fruit land if the cherry growers reestablish their presence given excess land coming up for sale. Also, it is worth noting that some of the larger vineyard players in the valley have continued to jump on opportunities as they arise, so we will ultimately see some consolidation within the industry

We could see a transition of vineyard land being turned into tree fruit land

Scott Marshall

Farmland

05
Okanagan Statistics

Okanagan Farmland

Okanagan Farmland

Elevated interest rates for farmland lending are a critical factor for farmland pricing.

The cold snap of January 2024 will lead to additional land coming up for sale, increasing supply and perhaps leading to a decrease in pricing depending on the need to sell land in a timely manner. For the farmland market to see an upward trend of activity, we will need to see interest rates come down as 2024 progresses, and healthy fruit pricing.

I expect spring/summer of 2024 to remain at a relatively slow pace. I have not seen enough activity out there to warrant a statement that insinuates positivity. On a promising note, many major lending institutions are forecasting interest rates to drop as 2024 carries on, meaning that once growers begin to see revenues towards the end of this year, I would expect there to be more sales activity if favorable lending conditions arise.

Lake Country Farmland Prices
-5%
Spring 2024
Kelowna Farmland Prices
-5%
Spring 2024
Vernon Farmland Prices
-5%
Spring 2024

Larger land parcels in the 50+ acre size remain in high-demand. I have several purchasers who are eager to purchase properties that fit the criteria for tree fruits/vineyard with large sizing.

If you are considering selling your large parcel, I have a great list of purchasers I could introduce.

In conclusion, the farmland market has continued to be quite stagnant, and I anticipate this stagnation to continue in the spring/summer, but potential to see a market uptick towards the end of 2024 if interest rates decrease as forecasted.

*Please note that the pricing and sales numbers above are based on interpretation of market data and are subjective in nature. For farmland and acreages, there is lower sales volume on the MLS than that in the typical real estate sectors, and many transactions that we handle are done privately off of the MLS. These numbers are drawn from my own experience in the sector and through consultation of various industry professionals.

Lake Country Farmland Sales
-50%
Spring 2024
Kelowna Farmland Sales
-45%
Spring 2024
Vernon Farmland Sales
-45%
Spring 2024
Farmland

06
Notable Sales

Featured Acreage

Listings

This is a great opportunity to obtain a premium brand, a stunning residence, and some of the best views that the Okanagan has to offer, all for the first time available to the public.

10.36 acres, 4 bed, 4bath, 4576 sq.ft.

18555 Matsu Drive

Offered for sale is Sage Hills Estate Winery, an established premium boutique winery in Summerland, BC. $13,900,000

View Listing
Acreage Listings

07
26 Commonage Road, Vernon

Acreage Listings

07
3623 Glencoe Road, West Kelowna

Acreage Acreage

07
Lot A + B Oyama Road, Lake Country

Acreage Listings

07
2304 82nd Ave

Acreage Listings

07
2850 McCurdy Road, Kelowna

Acreage Listings

07
Upper Mission area, Kelowna

Acreage Listings

07
16012 Oyama Road Lot A, Lake Country

Acreage Listings

07
2765 Arthur Road, Kelowna

Acreage Listings

07
1429-1409 Teasdale Road, Kelowna

Acreage Listings

07
991 Salmon River Road, Salmon Arm

Acreage Listings

07
8100/8104 Silver Star Road, Silver Star

Acreage Listings

07
5774 Deadpine Drive, Kelowna

Acreage Listings

07
656 Curtis Road, Kelowna

Acreage Listings

07
3380 Neid Road, Kelowna

Acreage Acreage

07
5720 Upper Booth Road, Kelowna

Acreage Listings

07
9983 Okanagan Centre Road W, Lake Country

Acreage Listings

07
4160 June Springs Road, Kelowna

Acreage Listings

07
10833 Hare Road, Lake Country

Acreage Listings

07
15829 Greenhow Road, Lake Country

Acreage Listings

07
8349 Okanagan Landing Road, Vernon

Acreage Listings

07
1810 Hilltop Crescent, Kelowna

Are you looking for your dream farmland or acreage? We can help.

The Marshall Reports

Reports with a focus on providing valuable insights into the local luxury, lakeshore, acreage, and unique property market throughout the Central Okanagan.

Why Work

With Us

$150M

Total sales volume since 2020

180+

transactions since 2020

3

agents

80+

active listings

The Scott Marshall Homes Group is a sophisticated group of high-producing agents at RE/MAX Kelowna, the #1 producing RE/MAX office in British Columbia.

The production and marketing expertise of the Scott Marshall Homes Group speaks for itself. In his earlier years as an independent agent, Scott Marshall was the #1 producing agent at RE/MAX Kelowna across its 200+ agent office for multiple years, the #2 producing RE/MAX agent in BC, and was ranked in the top 100 agents in the world for RE/MAX across its 144,000+ agents. Since then, Scott began growing his team organically.

Now, with multiple high-producing agents that mirror the success of his individual success, their team has produced hundreds of millions of dollars in sales volume, and have created some of the most effective and irreplaceable marketing platforms in the industry. Being part of the fifth generation of his family to call the Okanagan home, the Marshall family has a proud history in real estate and farming dating back to 1911; Scott knows the area like the back of his hand and every possible detail that is relevant to a potential transaction in the Okanagan. A large percentage of his business comes through repeat business and the referrals of satisfied clients.

Awards

Awards

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* 2022 – RE/MAX Canada

Contact

Scott Marshall and his team are happy to assist in any way possible on the potential purchase or sale of any property here in the Okanagan Valley. With a history dating back to 1911, we know the area like the back of our hands.

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