Hello,
Happy New Year!
As we begin 2025, it’s an ideal moment to reflect on last year’s real estate market and share our cautious optimism for the months ahead. While 2024 presented challenges, it concluded with promising signs of improvement, setting the stage for a more balanced market.
2024 Highlights:
- Sales Activity: December saw a 40.1% increase in unit sales compared to December 2023, with 276 units sold and $208.1 million in sales volume—a clear sign of market improvement.
- Inventory Levels: New listings were up by 6.75% year-over-year, bringing the total inventory to 3,128 active listings, a 17.51% increase compared to December 2023.
- Price Trends: While the average residential price increased by 7.12% to $1,076,544, overall prices across other categories remained relatively stable or showed slight decreases.
- Days to Sell: Homes took an average of 76 days to sell, up from 64 days in 2023. However, this figure doesn’t account for listings that were canceled and re-listed as new to appear fresh on the market, skewing the data and making it less reflective of actual market dynamics.
What’s Driving the Change?
City centers across Canada have seen a surge in activity, often a precursor to market momentum in surrounding regions. This renewed interest bodes well for the Central Okanagan, which typically follows these trends within a few months.
Outlook for 2025:
Looking ahead, we anticipate a more balanced market this year as:
- Inventory levels remain higher, giving buyers more options.
- Demand grows steadily, building on the confidence gained in late 2024.
- The relationship between supply and demand stabilizes, setting the stage for healthier market conditions.
While price growth may remain subdued until late 2025 or early 2026, we foresee an upward trend in sales activity. This gradual shift indicates a more balanced and sustainable market on the horizon.
Predictions for 2025:
As we venture into 2025, industry experts have shared their insights on the real estate market:
- Price Growth: RE/MAX Canada anticipates a 5% increase in national average home prices, driven by growing demand and limited inventory.
- Sales Activity: The Canadian Real Estate Association (CREA) forecasts a 6.6% rise in national home sales, with approximately 499,800 units expected to change hands, spurred by declining interest rates and renewed demand.
Stone Sisters predictions
- AI Takes Over Chores: With how fast AI is changing we believe we will see some significant changes in smart home technology this year . Possibly, it will advance to the point where your fridge can suggest recipes based on what's inside, your AI vacuum will schedule its own cleaning times, and perhaps with AI listening to our voice reflections our music and lighting will change automatically based on our mood.
- Price increase - We predict we will see a change in prices but not until the end of 2025 and towards the beginning of 2026
- Number of sales will increase - as buyer demand increases we will see a higher volume of sales this year
- More out of town buyers making the Okanagan home - we foresee a come back of out of town buyers making Kelowna home - predominantly from Toronto and Vancouver
Whether you’re considering buying, selling, or simply staying informed, we’re here to help you navigate this evolving market. Please let us know if you have any questions - we would love to help!
Kind regards,
Shannon & Tamara
