November Real Estate Report: Central Okanagan
Thursday Dec 17th, 2020
Central Okanagan November 2020 Real Estate Review
Prepared by: Steve Neil
Following a record contraction of the Canadian economy in the first half of 2020, the third quarter saw a vigorous rebound in economic growth. Real GDP was up 8.9% in the third quarter, bringing the economy back to about 5% of its pre-COVID-19 level. Household spending also rebounded, rising 13% in the quarter, while investment in housing was up 30.2%. The Okanagan real estate market continues to achieve historical highs as pent up demand continues to drive demand.
There was 3,322 residential sales in the 3rd quarter of 2020, a 56.1% increase compared to the same period last year. Sales topped $2.1 billion in Q3, the largest quarter on record. Residential sales across every OMREB region experienced double digit increases in Q3 compared to the same period last year. Single family home sales continue to lead the way with 1,676 sales across the summer months. This is a 56% year-over-year increase. In terms of apartment and townhouse sales, there were 544 and 531 sales of each over the course of the same period, representing a 34.9% and 39.7% increase respectively.
Demand from outside the region has continued to increase with the rise and success of the virtual workplace. The average square footage of single family homes transacted in the region was also 7% higher than the 5 year average as households seek to balance work, life and play as never before. Inventory of homes for sale is struggling to keep up with demand as listings declined 21.5% in September, and is now comparable to decade lows. The strong increase in demand coupled with the sharp decline in inventory has now pushed both single family and townhouses back into seller's territory.
Canadian mortage rates are expected to remain at current historically low levels for some time.
If you are looking to buy or sell in the upcoming year, reach out to the Jurome Real Estate Group! We would be happy to assist you with all your buying and selling needs.