Double digit price increases in Kelowna’s housing market

Economic strength and in-migration from Lower Mainland contribute to strong seller’s market

Double-digit increases in Kelowna home prices were the norm during the fourth quarter of 2017, according to the Royal LePage House Price Survey released Wednesday.

During the period, the aggregate price of a home in the region increased 12 per cent year-over-year to $637,894.

When broken out by housing type, the report showed significant year-over-year growth in prices across all housing types surveyed in Kelowna. In the fourth quarter of 2017, the median price of a two-storey home, bungalow and condominium increased eight per cent, 16.7 per cent and 19.5 per cent year-over-year to $718,131, $634,927 and $412,280, respectively.

RELATED: LAKE COUNTRY HOME VALUES SKY ROCKET

“The Kelowna housing market remained strong in the fourth quarter, with sales keeping pace right through to Christmas,” said Francis Braam, managing broker and owner, Royal LePage Kelowna, in a press release.

“We continue to see an influx of buyers coming from the Lower Mainland and Alberta to take advantage of Kelowna’s relative affordability. This, coupled with the strong economy and an influx of younger people taking advantage of employment opportunities in the city, has increased home prices and pushed the region into a seller’s market across all housing categories.”

Nationally, Canada’s residential real estate market saw strong, but slowing year-over-year price growth in the fourth quarter of 2017. The Royal LePage National House Price Composite, compiled from proprietary property data in 53 of the nation’s largest real estate markets, showed that the price of a home in Canada increased 10.8 per cent year-over-year to $626,042 over the three-month period.

When broken out by housing type, the median price of a two-storey home rose 11.1 per cent year-over-year to $741,924, and the median price of a bungalow climbed 7.1 per cent to $522,963. During the same period, the median price of a condominium appreciated faster than any other housing type studied, rising 14.3 per cent to $420,823 on a year-over-year basis.

RELATED: LULL HITS REAL ESTATE

“To prospective homeowners in our largest cities, condominiums represent the last bastion of affordability,” said Phil Soper, president and CEO, Royal LePage. “This is especially true for first-time buyers whose purchasing power has been reduced by tightening mortgage regulations.”

In line with Royal LePage’s previous Market Survey Forecast, Royal LePage predicts that the price of a home in Canada will increase 4.9 per cent by the end of 2018. Looking ahead, the company anticipates that the new OSFI stress test will slow the housing market in the first half of 2018, as buyers adjust their expectations and many market participants take a “wait and see” approach.

RELATED: HOUSE PRICES SURPASS $1 MILLION IN WEST KELOWNA

“The unsustainably high rates of home price appreciation witnessed in recent years in B.C. and Ontario were dangerous to the stability of not only the housing market, but to the broader economy itself,” continued Soper. “Policy measures like the OSFI stress test will quell runaway housing inflation to an extent. However, we do foresee an upswing in demand in the latter portion of the year, as prospective buyers adjust to the new realities. To put it another way, the demand is still there.”

To report a typo, email: edit@kelownacapnews.com.



kmichaels@kelownacapnews.com

Like us on Facebook and follow us on Twitter.

Just Posted

Lake Country councillors want stricter regulations, more signage on public smoking

In 2019, 21 fires in Vernon to Penticton zone have been human caused, some linked to cigarette butts

Kelowna Falcons’ take flight for shut-out victory

Kelowna’s bats and pitchers led the Falcons to a 3-0 win

Unexpected snow on Okanagan Connector, Pennask Summit

As of 6:50 a.m. DriveBC cameras displayed surprise snowfall on highway

Spikeball tournament sets up for Kelowna summer

The tournament for the four-player beach game comes July 13

Lake Country’s Canada Day will have plenty; just no fireworks

District communications officer Karen Miller says Lake Country has a unique celebration

VIDEO: Weekday weather update for the Okanagan Valley

Snow is expected on the Okanagan connector and thunderstorms across the Valley

Billboard posted along B.C.’s Highway of Tears to remember missing and murdered Indigenous women

Billboards featuring Indigenous artwork to be placed in Surrey, Kamloops and near Prince George

Driver loses tire while behind the wheel after lug-nut thief strikes in Burnaby

Burnaby RCMP are investigating after two reports of lug-nut tampering in the city this month

Federal cabinet ministers visit Edmonton, Calgary, in wake of TMX approval

Natural Resources Minister Amarjeet Sohi is set to visit Trans Mountain Corp.’s terminal in Edmonton

B.C. municipality prepares to forbid overnight camping by homeless despite court ruling

While courts have ruled against blanket bans, Langley City is employing a site-by-site approach

B.C. auditor says Indigenous grad rate highest ever but education gaps exist

The percentage of Indigenous students graduating from B.C. public high schools has hit its highest level ever

Statistics Canada reports annual pace of inflation rises in May to 2.4%

Transportation prices gained 3.1 per cent as the cost of air transportation added 8.9 per cent

Beekeepers from Argentina find sweet success in Shuswap

Honey Onyx Apiary is hoping to increase its operations by 200 hives this year

UPDATE: BC Wildfire crew spotted small wildfire in the South Okanagan

BC Wildfire has listed a new blaze, west of Penticton

Most Read