Kelowna real estate sales gained momentum in the final months of 2019, according to Kelowna realtor Andrew Smith.
When comparing real estate sales in the last quarter of 2019 to the previous year, Smith said there were 86 more sales made in the Kelowna region.
That’s a 19 per cent increase in the number of homes sold in the same quarter in 2018.
Smith said there needs to be changes in market conditions now to help stabilize prices.
“Although unit sales were slightly down compared to 2018, sales were up significantly in the last half of 2019 than 2018,” said Smith.
“There’s been so much momentum from sales, we almost need more inventory in the market now.”
Smith said less outside investment was one reason why real estate sales were down slightly by 26 homes in 2019.
“Albertans are still coming to Kelowna, but not at the same rate,” said Smith.
“We’re still getting older Albertans, but not the 30 or 40 year olds who want to get a second house here or revenue property”.
Smith said multiple taxes introduced by the provincial government are also helping to cool the real estate market.
“With the speculation and empty homes tax, the NDP government is trying to increase their own revenue,” said Smith.
“The downside is that’s its less attractive for many to purchase a home.”
In 2019, there were 1,973 apartment and townhouse sales in comparison to 2,337 single-family home sales in Kelowna.
Smith predicts that condo sales will reach single-family home sales around Kelowna in the coming years as more residents look for affordable housing options.
According to a 2020 BC Assessment, the average Kelowna home is valued at $629,000.