Typical house price in Kelowna back over $1M

After bouncing above and below the $1 million mark for the past 21 months, the benchmark selling price of a typical single-family house in Kelowna is again over $1M.

In fact, $1,009,100 in February to be exact, according to just-released figures from the 2,600-member Association of Interior Realtors.

The new benchmark skimming just beyond $1 million is up slightly from the $989,800 in January and the $966,500 it was at at the end of 2023.

The benchmark topped out at $1,131,800 in April 2022 as the housing market concluded a post-pandemic boom before runaway inflation and skyrocketing mortgage interest rates slowed sales and pushed prices down.

"It's refreshing to see overall market activity starting to pick up ahead of spring, which is typically a busier season for real estate transactions," said association president Chelsea Mann.

"With more potential interest rate improvements on the horizon, we are seeing more sellers, who were previously hesitant to list, gearing to jump in before the general real estate market spring rush."

In February, 106 single-family homes in the Central Okanagan changed hands, which is up from the 79 sales in January, but 15% off what it was in February last year.

A total of 41 townhouses sold in February, a bump from 28 the month before and a 14% jump from February 2023.

The benchmark selling price for a typical townhouse in the city was $754,900 last month, up from $728,999 in January, but still well off the record-high of $829,000 set in May 2022.

When it comes to condominiums, there were 64 sales last month, up a bit from 57 in January, but down 13.5% from February last year.

The benchmark selling price for a typical condo in Kelowna in February was $508,600, back above the half-a-million-dollars mark after January's $485,400 and $480,800 at the end of 2023.

There's still catch up to do for it to reach the record-high for a condo -- $557,700 in April 2022.

House prices and sales data don't just matter to those buying or selling a home this month.

They are closely watched indicators of the real estate industry and overall economic health of the community.

What that means is that price and activity pick up means the real estate market is getting closer to being balanced.

It also means that the home you live in is likely worth more than when you bought it, a lot more if you purchased when prices were 40% cheaper before the pandemic.

But, it also means, that Kelowna home prices and rents are unaffordable for many potential first-time buyers and lower-and-middle income individuals, couples and families.