Luxury

The luxury real estate market in Kelowna and the Central Okanagan had a notably slow year in 2023, and this trend has persisted into the summer of 2024.

Properties in the $1,300,000 to $1,999,999 range and those priced over $2,000,000 have experienced varied levels of market activity, characterized by lower transaction volumes and extended days on market, reflecting broader economic challenges. Despite these hurdles, property prices have remained relatively stable, indicating strong value retention even amid reduced liquidity.

Albertans continue to be significant market participants, driven by favorable economic conditions in their home province. Their presence is evident in both showings and overall call volumes. In contrast, the Ontario buyer base has significantly diminished, with fewer transactions and reduced interest compared to previous years. Buyers from the Lower Mainland have remained consistent, focusing more on properties priced below $3,000,000, demonstrating a preference for more affordable luxury options.

The standard real estate market, encompassing standard single family homes and condos, has faced similar challenges to the luxury segment, with prolonged difficulties observed throughout 2023. That being said, the single family market sub $1,000,000 has seen the strongest sales volume of all markets in recent months with a number of homes seeing multiple offer situations again and offers being at or above listing price. We have started to see well priced attractive homes in higher luxury price points receiving offers but remain hesitantly optimistic over the summer.

Looking ahead, it is anticipated that these sluggish market conditions may persist through the remainder of 2024. A potential improvement could be seen if there are reductions in interest rates, which would likely stimulate market activity. Patience and strategic marketing will be crucial for sellers aiming to navigate this slow market. There is cautious optimism for a market revival, contingent on economic factors such as interest rate adjustments.

In conclusion, 2023 was a challenging year for the luxury real estate market in Kelowna and the Central Okanagan, and these challenges have continued into 2024. Transaction volumes are down, and properties are taking longer to sell, but prices have held steady, indicating that value remains strong. Moving forward, sellers will need to exercise patience and leverage strategic marketing to achieve successful transactions in this unique market environment. Mean while, Buyers can remain selective and look for a property that truly suites their needs, keeping in mind that unique and desirable homes in this price point are getting significant activity. There is hope that the market will see a positive turn, especially with potential interest rate decreases on the horizon.