Kelowna real estate agent Quincy Vrecko predicts 2015 will be a strong year to buy and sell luxury homes in Kelowna. Much demand will be in waterfront properties, taking advantage of Okanagan Lake’s recreational aspect.
Prices climbed, and climbed. Properties sold in days, even hours. If 2014 was an exceptional year for Kelowna real estate, with more homes selling and at prices eight per cent higher than the previous year, what does 2015 have in store for the central Okanagan market, particularly for luxury homes?
Quincy Vrecko, a Kelowna real estate agent who specializes in luxury homes, says the strong market of 2014 is already spilling over into 2015.
“Kelowna had an incredible year in 2014, and we have every indication that 2015 is going to be just as strong. January is typically a quieter month but our phones have been ringing off the hook already,” says Vrecko, who was recently featured in the Global TV news story Okanagan Real Estate Sales Soar in 2014.
Over the next 12 months, the average residential home sale price is expected to increase by eight by per cent, but while prices are set to rise, the number of homes on the market won’t.
“It’s going to be similar for luxury homes,” says Vrecko.
The inventory of luxury homes for sale in Kelowna
In the Okanagan luxury homes sector, inventory is expected to remain low.
“There are very few lakefront lots available, very few building lots available, but the demand is there so we’ll see an increase in values.”
What does that mean for the Albertan or the Manitoban looking for their dream home in Kelowna in 2015?
“Buyers are still going to have some great homes to choose from, but at low levels of inventory, the average day on the market is going to go down, so buyers will need to make a decision quicker.”
In 2014, both active listings and days on market went down 16 per cent compared to 2013. That led to multiple offers and, in some cases, steep competition for beautiful properties in desirable neighbourhoods.
Who is buying Kelowna luxury homes in 2015?
While oil prices may rise and fall, you can always count on Prairie winters to be harsh, and the Okanagan to be beautiful.
Vrecko says he expects many of his clients in 2015 to continue to be the Calgarians or the Winnipegers who simply want to be warm, and that will likely never change.
Because of what’s happening in Kelowna real estate in terms of supply and demand, he’s noticing clients who plan to retire in Kelowna in a few years buying property now before prices continue to rise.
“They’re seeing what’s happening in the market, and they’re thinking, ‘Let’s buy now and use it as a vacation home until we’re ready to retire.’”
And as interest rates continue to drop, realtors like Vrecko are expecting the busiest time of the year for buying and selling homes, typically May to July, to kick in a little sooner.
What areas are in demand for Okanagan real estate?
When it comes to the average home, activity is expected to remain strong in Kelowna South and the Upper Mission area. With the development around the hospital, Kelowna North is also expected to see more interest.
“For buyers of luxury homes, the demand will continue to be for waterfront properties near central Kelowna and West Kelowna.
“That’s always at the top of the list for our Alberta buyers,” says Vrecko.
When you’re looking for a Kelowna real estate agent who specializes in luxury homes and can help you find your dream waterfront property in 2015, contract Vrecko & Associates.