Kelowna area housing starts and sales of existing homes will be on the rise in 2010 and 2011, according to Canada Mortgage and Housing Corporation (CMHC).
“Demand for both new and existing housing is expected to pick up as the provincial and regional economies record stronger growth,” explained CMHC Market Analyst Paul Fabri.
New home construction and sales of existing homes will see modest gains. However, Fabri cautions that housing demand will slow later this year, due to slowly rising mortgage interest rates.
Housing starts, led by the detached home sector, will increase this year and next. “Kelowna’s multi-family construction sector has moved away from large-scale apartment condominium projects,” noted Fabri.
Expect condominium construction to pick up in 2011 as the inventory of completed and unoccupied units and supply of existing homes available for sale is drawn down. For now, builders of multi-family homes are focusing on smaller, phased attached housing projects and some rental buildings.
Existing home prices are expected to edge up in 2010 and 2011. Kelowna’s existing home market is expected to remain stable in a balanced market position through 2011.
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