21 Jun Kelowna Real Estate becomes a Seller’s Market
It’s currently a seller’s market in Kelowna with residential real estate prices climbing after what some dubbed the ‘six year slump’. Despite many fearing an economic relapse due to the Alberta oil crisis, Kelowna is witnessing the emergence of a micro-economy dependent upon technology and construction, setting the record straight once and for all, we are more than tourism. Why such a spike in the market? Royal Lepage’s Francis Braam weighed in,
“The Kelowna housing market is driven by demand from both local buyers and those from British Columbia’s Lower Mainland, including younger buyers who have been priced out of the Vancouver market.’
Real Estate Conglomerate, Royal Lepage reports that the first quarter of 2016 witnessed an increase in aggregate home prices of 6.1%. For buyer’s seeking a specific housing type, the median price of a bi-level home increased 13.1%, bungalow’s increased 2.4%, and the mass of real estate inventory; condominiums increased 1.6%. But buyer’s need not be discouraged from buying in the valley due to this increase as the average home price in the country has also increased 7.9% within the first quarter of 2016, predominantly driven by increases in metropolitan areas like Vancouver and Toronto.
Remax speculated back in December that there was about five months’ worth of housing inventory available within Kelowna, meaning on average it could take about five months to sell. However, many realtors are currently saying a home priced accordingly within Kelowna can easily be purchased pre-MLS posting, or within the first week of its listing, suggesting the continuation of a strong seller’s market. A long time surplus of condos within Kelowna is projected to quickly dry up as the federal government has made revisions for the minimum amount required for a down payment for homes over $500,000, thus making condominiums often priced below $500,000 even more desirable to younger, first time buyers. This trend coincides with the projection that Kelowna home owners will see a modest single digit increase in property value well into 2020.
But the increased cost of housing does not stop at home owners, as renters within the city are feeling its effects. With an influx of coastal residents seeking a ‘bargain’, easterners relocating for work, and the ever abundant surge of students attending Okanagan College and the University of British Columbia, Kelowna is now facing a record low vacancy rate with ballooning rental prices up 13%. Currently, a large portion of John Antle clients are approaching investing in real estate as a means to offset the fixed costs of renting and limited supply. An alternative we see emerging is the resurgence of buyers seeking homes with basement suites to offset increased home prices and cash in on the non-existent vacancy rate.
If you have put in the effort in a seller’s market to locate your dream home, trust your mortgage with a professional that knows the market trends of Kelowna. Call John Antle Mortgages today to secure your piece of the Okanagan, (250) 212 8512.
JOHN ANTLE MORTGAGES – KELOWNA’S MORTGAGE SPECIALIST
We specialise in offering mortgage solutions that go above and ‘beyond the bank’. This means we are able to provide flexible solutions at great rates, often better than what traditional banks have to offer. Working with a mortgage broker can open up your options, allow for potentially greater solutions for your situation. We work with a variety clients including first-time buyers, those looking to transition from renting to owning or renewing a mortgage, self-employed business people, as well as investors in rental and/or vacation properties.