Royal LePage’s Q3 House Price Survey and Market Survey Forecast has revealed that Kelowna’s real estate market has been on a significant upswing.
The study says standard condominiums increased in price by 2.1 per cent, to an average of $304,943, while two-storey homes have increased in price by 9.4 per cent, to an average of $601,828.
Detached bungalows have also increased in price 2.2 per cent to an average $464,038.
The Royal LePage report’s conclusions are that a strong Kelowna sales market is being driven by retiree buyers moving into the region.
“Kelowna continues to be perceived as a highly attractive western Canada destination for retirees,” said Francis Braam, managing broker/owner, Royal LePage Kelowna.
“We are still seeing a large number of buyers from Alberta and Saskatchewan in spite of the slowdown in the oil sector as well as from the Lower Mainland region.”
Braam adds that Vancouver buyers are realizing that they can achieve much better value in the Kelowna market currently.
Nationally, home prices showed moderate to strong year-over-year price increases in most markets in Canada. According to the report, the price of a home in Canada increased eight per cent year-over-year to $502,643 in the third quarter.
The price of a two-storey home rose 9.9 per cent year-over-year to $615,304, and the price of a bungalow increased 6.8 per cent to $421,757.
During the same period, the price of a condominium increased 2.8 per cent to $338,684.
“Economic slowdowns in energy-dependent markets, most notably in western Canada, have in part been offset by both renewed industrial activity in other parts of the country and the Bank of Canada’s recent interest rate cuts,” said Phil Soper, chief executive officer for Royal LePage.
“In line with recent quarters, strong national home price increases are largely being driven by continued double-digit percentage increases in the Greater Toronto Area and Greater Vancouver, where housing affordability is already becoming a growing challenge for many individuals and families,” Soper said.
“Home ownership remains a bright light amid unsettled investment and savings options in volatile global capital markets.