KELOWNA — They’re not Vancouver numbers, but real-estate prices in Kelowna are holding their own.
A report released by Remax suggests Kelowna house prices will continue to climb with modest single-digit increases despite the oil crash in Alberta.
The average price for home in Kelowna last year was $420,000.
It climbed by three per cent this year to just under $436,000.
Remax says that same home will be worth more than $444,000 next year.
The highest jump was in Vancouver where prices jumped by a whopping 17 per cent last year.
Remax says the Vancouver prices are being driven by buyers from China.
“That strong market performance that we see going on there has really helped Kelowna and the rest of the interior for pricing,” says Elton Ash of Remax.
Remax says there’s five months of inventory on the Kelowna market right now, meaning on average it will take about five months for a home to sell — luxury homes taking the longest because of their high prices. At the other side of the spectrum are condos which are being snapped up almost as soon as they get on the market.
“A well-priced condo will come on the market and sell within a week,” says Ash.
And the condo market will likely continue to dominate the market, at least for first time home buyers, because of affordability and tweaking by the feds.
“The federal government is looking at increasing down payment levels for homes over $500,000. So, what’s occurring, especially for first time home buyers, is they’re looking at the condo market more than they have before because condominiums are still affordably priced in the $350,000 to $500,000 range,” says Ash.
He adds the Kelowna housing market will continue to see modest single digit increases right through 2020.