Millennials looking to buy their first homes and baby boomers retiring are some of the driving forces behind the current strong development in the Kelowna real estate market, says a Kelowna real estate company.
Vantage West Realty Group released a year-over-year study of Central Okanagan property sales that examined market trends for 15 local neighborhoods.
At the top of the list are double-digit increases in home prices in Black Mountain, Lower / Upper Mission, and West Kelowna Estates.
“With a beautiful golf course, access to a network of hiking trails, green spaces and close proximity to the Big White Ski Resort, we can expect Black Mountain to continue to thrive,” said Realtor AJ Hazzi, author of the semi-annual report.
“In The Mission, properties in all types of property sell faster and for more money.”
The report said prices for single-family homes in Black Mountain, Lower / Upper Mission, and West Kelowna Estates rose 23 percent. Average sales prices are approaching million dollar prices in both the Lower / Upper Mission and Southeast Kelowna / Crawford areas. The “average” home in Black Mountain is now 3,000 square feet and sells for an average of $ 750,000.
The average sales price of townhouses showed the largest increase of any property type in the Lower / Upper Mission at nearly 25 percent, the report adds.
The Lower / Upper Mission area is proving to be popular with Vancouver and Alberta buyers, Hazzi says, and will continue to see upward pressure on prices. “We expect a trend of baby boomers selling their homes in Upper Mission to occupy townhouses and condos in Lower Mission, while cashier Generation X buyers are buying their big houses on the hill.”
Downtown, on the north and south ends, homes have been moved into the low $ 700,000 range from the mid-$ 400,000 mark as the city council expanded the mix with approval for infill housing in select areas.
Up to four apartments on a typical 50 x 120 foot urban lot are now allowed under the RU7 zone.
Rutland has seen tremendous growth across all property types, the report said. The average year-on-year sales price increase is 20 percent, which is five times the regional average for single-family homes.
And a duplex in Rutland that could have been bought for $ 550,000 last year can now fetch $ 750,000.
The report also highlights a trend towards downsizing in the Kelowna luxury market, with homes ranging from 3,500 square feet to 4,500 square feet. Of all luxury homes currently selling for more than $ 1 million, more than half are new “executive-style” homes typically found in the hills surrounding the city with beautiful views. Teardowns and reconstruction work are ongoing along Lakeshore Drive and Abbott Street Corridor.
“With some exciting new towers and luxury townhouse complexes, we can expect condos and townhouses to capture their fair share of the million dollar market in the years to come,” said Hazzi.
Lake Country also boasts an increase in sales, but with relative affordability compared to other neighborhoods. An average 975-square-foot apartment can be bought there for under $ 280,000. In West Kelowna, Shannon Lake is still one of the most affordable family-friendly neighborhoods with an average of 1,750 square feet townhouse selling for just under $ 470,000.
Year-on-year growth in average single-family home prices.
West Kelowna Estates $ 666,471 $ 541,755 23%
Black Mountain $ 757,259 $ 615,727 23%
Mission $ 977,126 $ 795,278 22.9%
Rutland $ 512,975 $ 421,603 21.7%
Glenrosa $ 502,996 $ 413,690 21.6%
West Bank $ 510,079 $ 428,113 19.2%
N Glenmore / Glenmore $ 638,967 $ 543,310 17.6%
SE Kelowna / Crawford $ 945,126 $ 812,051 16.4%
Shannon Lake / Smith Creek $ 640,163 $ 564,534 13.4%
Dilworth $ 839,044 $ 748,974 12.0%
Zealand $ 773,046 $ 703,155 9.9%
Peach Land $ 623,292 $ 571,655 9.0%
University District $ 707,857 $ 662,318 6.9%
Downtown $ 642,524 $ 612,681 4.9%
Lakeview Heights $ 806,993 $ 775,618 4.1%
In terms of developments to watch, the report suggests the 124 units 1151 Sunset in Downtown Kelowna, which is almost sold out, One Water Street, which plans two towers with a mix of advertising on the ground floor. If approved, the towers would be Kelowna’s tallest buildings at 36 and 29 stories.
The Ella is planned as a 20-story high-rise on Ellis Street and will bring an additional 116 units into the inner city center. Central Green with a planned 500 units, Stockwell with 32 units and Cambridge House, which has sold out its planned 210 studio units, are also under construction in the city center
In Black Mountain, 240 mountain view homes will be added on Prospect at Black Mountain. Blue Sky at Black Mountain with building lots of up to $ 500,000 and Kirchner Mountain continue to develop.
In the mission area, developers are presenting new properties in Sienna at Sarsons and Gyro Beach Townhomes, while The Ponds are planning another phase in the Upper Mission.
In Glenmore, new homes in Highpointe, Sheerwater and McKinley Beach are driving up the average single-family home selling price.
In Lake Country, The Lakes – between Okanagan Lake and Wood Lake – construction continues on its 300 acre apartment building, which offers breathtaking views of the Okanagan Valley. Lakestone is also quickly selling its 1,300 unit project on the shores of Okanagan Lake.
New developments in Shannon Lake include Haven Villas on Tallus Ridge, Era Townhouses (few of which remain), a five-lot subdivision on Hihannah Drive, and Tallus Green Townhomes currently under construction.
In Glenrosa, 60 new homes are planned for Glen Eagles, 29 new homes in The Vines on Inverness, an affordable new community overlooking Lake Okanagan called Vine Living and Crystal View with its 60 building lots.
In Peachland, the New Monaco Development is expected to double the current population of the parish to 9,400 once fully developed.
