Couple Analyizing the Kelowna Market Trends
The local Kelowna Real Estate market has many people talking from home owners to investors and developers. The interest stems from changes in local zoning as well as our community’s growth and outlook for 2017.
If you have been following the buzz about Okanagan Real Estate and the number and types of building projects in the area you will appreciate that we are one of the best communities in Canada for growth currently. While industry and real estate experts predict a slowing trend in 2017 we are still a hot market to be involved in. Here are a few stats from The Canadian Real Estate Association.
- 520 homes sold in February in the region (Revelstoke to Peachland) 572 homes sold in the same period last year.
- Average days on the market for a home was 87 which is shorter then last years at 96
- Prices have risen 13% over last year’s average. The home price median is now at $480,052.
Statistics for the Kelowna Real Estate market are influenced by a number of factors. One key issue is the number of properties for sale in the region. The availability of homes for sale is down 30% over the same period as last year. This low inventory of homes causes upward pressure on the price of Okanagan homes.
Another key factor in the market is the influx of new residents in Kelowna. Our current vacancy rate for rental property is very low at 0.7% and the fastest growing demographic is ages 25 to 34. This younger group are starting families and looking for family homes or rental properties. This trend is creating opportunity for builders. We have several large-scale townhome and condominium style properties under development in Kelowna and area to try and fill this specific need.
The city is aware of this pressure for affordable housing and has recently approved a change in zoning from RU6 to RU7. Which allows for Infill development in the center of the city. This is a conscious decision by the city planning department to create new building opportunities that provide rental units and homes at a more affordable level.
Another trend in the local Kelowna Real Estate scene is the origin of the buyer. CREA has been tracking this statistic for a number of years now and we see that 55% of the homes are being sold to people from the Okanagan Valley. A shift in out of town buyers has occurred with 20% now coming from Vancouver and the Lower Mainland and only 10% from Alberta. Prior to the Alberta market falling into recession these numbers where reversed as we saw a larger influx from Alberta during the oil and gas boom.
Some peripheral factors are also occurring which we should be aware of. These include the world class education we now have available in Kelowna at UBCO. This University has an exceptional reputation in Asia and the opportunity the Okanagan campus presents is not unnoticed. We also have a concerted effort by our School District to attract International students to Kelowna and we are considered one of the up and coming high tech hubs in Canada.
For Family homes and first time buyers the top three include families with Children at 26%, Couples without children at 24% and empty nesters at 20%. First time buyers are a strong influence in the marketplace and account for 21% of the homes being sold. This aligns with the 24 to 35 age group we noted earlier.
To learn more about the Kelowna Real Estate market and homes that are available for sale in your area contact Tracey Vrecko and the team at Quincy Vrecko and Associates 78-760-2860!
Are you looking to buy your first home in Kelowna? Check out Things you need to Know Before Buying your First Kelowna Property.