Kelowna is expected to lead the country in house price increases in 2015.
RE / MAX publishes its 2015 Housing Market Outlook Report, which says the average price of a home in Kelowna will increase 7 percent from $ 428,000 in 2014 to $ 458,200 next year.
This is due to supply and demand, with the report saying inventory with active offers decreased 16 percent year over year.
Photo credit: 2015 Housing Outlook Report
“The lack of supply has led to multiple offers as buyers compete for attractive, affordable properties,” the report said. “Inventories are expected to remain at 2014 levels in 2015, which should result in upward price pressure as buyers continue to compete for well-appointed homes in sought-after neighborhoods.”
It is expected that sales will increase by 10 percent in 2015 and that “rising stars” will stimulate demand like in 2014. Last year, condominiums made up 34 percent of sales.
The report went on to say that low inventory levels “will have a significant impact on Kelowna’s real estate market and low interest rates well into 2015”. However, the strong fall sales are expected to continue into next year.
“The Kelowna real estate market is very optimistic in 2015 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 gains are also expected in Moncton (6 percent), Victoria (4 percent) and Windsor (5 percent).
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