Property prices in Kelowna are down year-over-year, but construction activity has increased in the central Okanagan, according to a new property survey.
The median home price in Kelowna fell 3.9 percent year over year to $ 617,899 in the third quarter of 2019, according to Royal LePage.
In the third quarter of 2018, Royal LePage announced that the average home price in Kelowna was $ 640,864, which rose to $ 643,787 in the first quarter of 2019.
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The average price includes all types of living space.
According to Royal LePage, the average price of a standard two-story house when broken down by apartment type fell 6.0 percent year-on-year to $ 676,843. In the third quarter of 2018, Royal LePage stated that two-story homes had an average price of $ 719,870. In the first quarter of 2019, the average price was $ 729,602.
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The average price of a bungalow is $ 635,863 ($ 657,661 in the third quarter of 2018; $ 635,418 in the first quarter of 2019), while the average price of a condo is $ 432,927 ($ 404,575 in the third quarter of 2018; $ 435,823 in the first quarter of 2019).
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However, signs of more living space speak against these declines.
The city, especially in the city center, is experiencing some sort of boom with several condos and towers under construction.
According to the City of Kelowna, 1,152 new apartment buildings were or will be built between January 1 and September 30.
Of these 1,152, the overwhelming majority (701) were residential units, followed by renovated secondary suites in single-family homes (119), new secondary suites in single-family homes (104) and new townhouses (96).
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“We are increasingly active in both sales and construction, especially in the condominium market. There is a huge demand for condos and suite houses, ”said Francis Braam, Managing Broker and Owner of Royal LePage Kelowna.
“In order to meet the strong demand for condominiums and the high land costs in the region, the city has reallocated parts of the core to allow for higher density.”
Braam went on to say, “Vancouver buyers, particularly those from the lower mainland, are moving inland to regions like Kelowna for more affordable living, but with similar quality of life and employment opportunities to larger cities.”
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He noted that steady demand within BC is offset by the province’s recent speculative and vacancy tax, which is aimed at foreign and domestic speculators who don’t pay taxes here.
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“As a result,” said Braam, “home price increases have slowed in the region.”
The national average price of a home in Canada rose 1.4 percent year over year to $ 630,335 in the third quarter of 2019, according to Royal LePage.
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The national average price is predicted to rise to $ 632,226 in the fourth quarter – 0.3 percent higher than the third quarter and 1.5 percent higher than 2018.
Meanwhile, the Okanagan Mainline Real Estate Board has slightly different prices. The average price for an apartment is $ 345,000, a townhouse is $ 480,000, and a house is $ 661,250.
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