As spring continues to take hold across the country, real estate starts to transition away from the winter lulls and into a more active spring market. The Kelowna real estate market has been gradually growing since at least 2015, and the population of Kelowna has also been on a steady rise. There are a lot of great opportunities for both buyers and sellers of properties, whether it is commercial or residential.
Current Market Status for Kelowna
Although there has been a steady growth of real estate market sales since 2015, the end of 2018 and start of 2019 has seen a slight dip in inventory and sales in comparison to the previous year. The dip in sales was more prevalent with single-family homes than with condominium or townhomes, and it was mainly caused by an influx of people moving to the Kelowna and general Okanagan Valley area from cities like Vancouver; people who are trying to find more affordable housing, new job opportunities or lucrative real estate investments. According to the latest sales statements from the Okanagan Mainline Real Estate Board (OMREB), March 2019 saw an increase in sales and inventory compared to previous months. This increase should follow through to April and beyond as the real estate season gets fully underway. This is the time of year when homeowners start to spring clean and prepare their homes for the market. However, long term projections hint towards a slower price growth for the years of 2019 through to 2021, compared to 2015 to 2017, due to several factors, including the new speculation tax and stricter mortgage application rules. With it harder for first-time buyers to qualify for a mortgage, it’s recommended that they get pre-approved before going out and looking on the market.
Real Estate Market in Surrounding Markets
The real estate market in the entire region is more or less similar to Kelowna, with a few exceptions. Vancouver, over the last decade, has had issues with real estate residential prices getting out of control, which was part of the reason for the new stricter mortgage application rules and the speculation tax (which taxes foreign owners more heavily.) This led to an influx of people moving out of the GVA and into cities (such as Kelowna, Vernon and Kamloops). The markets in Vernon and Kamloops are smaller than that of Kelowna and the Central Okanagan Valley area. This results in lower average prices in comparison to residential options in both of those cities, but it also impacted a lower number of sales. As well, the inventory is lower, causing high average days on the market and less selection for buyers. Kamloops currently has a near-historically record low inventory – and not much new supply – resulting in a price surge for the average price of residential options in the last few months (February 2019 was a record $422,572 average price for single-family homes). Vernon’s March stats mirror that of Kelowna overall, with a boost in inventory and sales and a boost in average price; the outlier is the increase in days to sell. While the surrounding cities have their merits, from needing a lower price point of the smaller cities for a first-time buyer or more affordable move-up options, Kelowna real estate is on a steady increase and has great potential for sound residential property investments, whether you’re moving in for life or just for five years.
Find Your Home Online
If you are interested in purchasing or selling property in the Kelowna or surrounding area, Ovlix.com is a great resource for finding listings fast and conveniently. You can search through their expansive database of listings for just what you’re looking for, whether it’s a certain price range, a property type, or specific features. If selling, you can submit your listing for free, or your Realtor can opt-in to list on Ovlix.com