Kelowna is expected to lead the country for house price hikes in 2015.
RE / MAX came out with its Housing Market Outlook Report 2015, which says the average price of a house in Kelowna will increase 7 percent from $ 428,000 in 2014 to $ 458,200 next year.
This is due to supply and demand. The report says inventory levels have decreased and active offers are down 16 percent year over year.
Photo credit: Housing Market Outlook Report 2015
“The lack of supply has led to multiple offers as buyers compete for attractive, affordable properties,” the report said. “Inventories in 2015 are expected to remain at 2014 levels, which should lead to upward price pressure as buyers continue to compete for well-equipped apartments in sought-after neighborhoods.”
Sales are expected to increase by 10 percent in 2015 and “up buyers” will help boost demand like in 2014. Condominiums are expected to continue to constitute a significant portion of the Kelowna real estate market. Last year, condominiums made up 34 percent of sales.
The report went on to say that low inventory “will have a significant impact on Kelowna’s real estate market and low interest rates well into 2015”. However, the sharp decline in sales is likely to continue into the next year.
“The 2015 Kelowna real estate market is very optimistic as consumer confidence continues to rebound on the back of low interest rates, steady job growth and a strong prairie resource market,” the report said.
Healthy price increases are also expected in Moncton (6 percent), Victoria (4 percent) and Windsor (5 percent).
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