As we waved goodbye to summer weather, the Knew Crew hit the streets in September to chat with sales teams representing over 50 multi-family developments and over 2600 multi-family units currently constructing and/or pre-selling (“new”) across the Central Okanagan area (West Kelowna, Kelowna and Lake Country).
Since our last survey in mid-June, Knew observed 57 attached-wall sales and 336 apartment condo sales within projects marketing new multi-family units across the Central Okanagan (estimated sales for 3rd quarter of 2018).
By considering these figures alongside existing home sale numbers in the 3rd quarter of 2018 Knew has estimated that the demand for new attached-wall units represented 22% of all Central Okanagan attached-wall sales during that time (down from 26% in the first half of 2018), while the demand for new apartment condo units represented 50% of that market (up from 43%).
Overall, new attached-wall sales in the 3rd quarter did not keep pace with increases of supply resulting in a months-of-supply measure of 14.4 at the end of September – up from 8.7 in June 2018. By contrast, September months-of-supply measures for both low-rise and highrise apartment condominiums remained consistent with past measures, and notably low at 4.8- and 1.6-months worth of new inventories respectively.
That being said, it’s worth noting that significant price gaps currently exist between the recent average sale price of new apartment condominiums and the average price of those still available for sale. This could indicate that natural price ceilings are forming in this market for that product type, and thus what is left to sell would take longer to sell than what has sold to date.
Moreover, pre-sale success varied widely among different developments in the 3rd quarter of 2018 by comparison to the first half, with some developments experiencing high sales volumes, and other experiencing negative sales rates (i.e. they lost contracted sales from the first half of 2018; namely do to issues with the buyers writing subject-to-sale contracts).