Kelowna isn’t the only Okanagan city where real estate sales are soaring.
In the south Okanagan, sales have reached their highest levels in over a decade as supply nears all-time lows.
At two new residential developments in Penticton hundreds of homes sold out before final construction.
Curt Jansen is in charge of sales at Skaha Hills, a new development above Skaha Lake on land owned by the Penticton Indian Band.
“We can’t build them fast enough,” he said. “Demand has definitely exceeded our expectations.”
It is a similar story on the other side of town at Sendero Canyon.
“The realtors up here are homeless because we sold our show suites so all of our standing inventory is sold and the demand has been incredible,” said realtor John Green.
Strong demand is driving sales.
Past president of the South Okanagan Real Estate Board, Garry Gratton, said the industry posted its best first quarter in over a decade.
“There are some big, big important adjectives that go along the lines of fabulous and awesome and better than we’ve seen in well over a decade.”
Home sales totaled 479 units in the south Okanagan in the first three months of this year.
That is an increase of almost 12% over same period last year.
At the same time supply has plummeted.
840 units were listed on the board’s MLS system at end of March.
That is down almost 30% compared to the same time last year.
“Unfortunately for the buyers, it is more of a sellers’ market this year than it was last year simply by virtue of the fact that absolutely everything is selling and consequently the inventory depletes,” Gratton said.
Home prices are also on the rise.
The average price in the south Okanagan is $374,000, an 11.7% increase over last year.
So who is buying all of these homes?
“Kelowna residents looking to go south if you will and move down to Penticton. I think Kelowna has gotten very busy. We are now seeing that migration of Kelowna residents that are seeking out a little quieter, a little resort style development,” said Jansen.
It doesn’t appear the hot real estate market in the Okanagan is cooling any time soon.