Typical home price in Kelowna actually slipped in September

We've all heard the saying: Pride cometh before the fall.

We'll it's happening right now in Kelowna real estate.

In August, the benchmark selling price of a typical single-family home in the city skyrocketed to a record-high $961,800 (the pride).

In September, according to numbers just released by the Association of Interior Realtors, the benchmark slid to $923,500 (the fall).

That's a one-month drop of $38,300 or 4%.

While it's not a catastrophic fall, it is shocking for a number of reasons.

First, the benchmark selling prices of homes have been on a continual record-setting tear for the past year and many thought it would never end.

Second, it strikes fear in some that this may be the start of a bigger downward trend that will erode the home equity they've built up during the housing boom.

Third, maybe it gives a glimmer of hope to some people that they may be able to afford a home one day after having to stand on the sidelines during the escalation.

Also in September, the Association of Interior Realtors reported the number of single-family homes sold in the Central Okanagan was 244, a significant 31% drop from the same month last year.

"The amount of supply (number of homes for sale) is just so low, creating an imbalance that makes demand seem overwhelming," said association president Kim Heizmann, a realtor with Century 21 in Vernon.

"There has been a lot of talk about high demand and while we are still seeing a strong demand, it actually is within a healthy range."

Might that mean, a stalling or decline in house prices might also be within a healthy range?

Statistics can be viewed many ways, and the Association of Interior Realtor figures are no exception.

If you look at September's benchmark selling price of $923,500, it is, in fact, lower than August's record-setting $961,800.

But, that $923,500 is a whopping 27% more than it was a year ago, which is the way a lot of people measure trends.

Back in December 2020, the benchmark selling price of a typical single-family home in Kelowna was under $800,000, which means the recent gains have been dramatic over a short time.

Meantime, the price shaving trend doesn't apply to Kelowna townhouses and condominiums. The benchmark selling price of a typical townhouse in September was a record-high $675,300, up from $644,800 in August and up 30% over the year.

For condos, the benchmark selling price of a typical one in September was a record-high $478,300, a bump from $473,100 in August and a 23% jump over last year.

The single-family home benchmark is considered the standard because it is the most common type of housing in the city, represents the most sales and tends to be ideal of many Canadians.

"Seasonally, the real estate market is showing signs of pre-pandemic normalcy," said Heizmann.

"Usually, we do see an influx of new listings in the fall once children go back to school and families want to move before the Christmas holiday and we are starting to see that with new listings coming on the market."

Such increased inventory may mean homes will have to be competitively priced and could contribute to a slowing or slipping of the benchmark selling price