Supply and demand.
It’s a simple economic concept that aptly describes the southern inland real estate boom that’s particularly big in Kelowna right now, says the mission group chairman.
Jonathan Friesen believes a combination of factors have contributed to the currently overheated real estate market, where listed property bans multiple listings in hours instead of days, and bidding $ 30,000 above the asking price is often a starting point for buyer competition
According to Friesen, the typical property sales market cycles that we traditionally see in the Okanagan have disappeared since the pandemic resumed last fall.
“A stable market for us would typically generate around 20 percent of sales from available inventory in a given month. In April we saw that this number had reached 90 percent, ”said Friesen.
He believes this affects several issues: Kelowna is becoming an attractive option for home and recreational property buyers; the opportunity to work from home newly discovered during the pandemic; Pandemic inspired shopper mentality of buying now instead of waiting, which can be an increasing post-pandemic attitude; better job opportunities in a community with low unemployment; big city dwellers of a city size in Vancouver or Toronto who are tired of condensing their lifestyles.
“Our lifestyle here is hard to beat. We have all the services of an urban center, but we have the outdoor lifestyle experience and we don’t have to fight the traffic or have a long commute to get somewhere, ”said Friesen.
Even so, it still comes back to the basic characteristic of supply and demand.
Friesen says that while that demand traditionally came from Alberta and more recently at higher levels from the lower mainland when Alberta’s economy took a downturn, the same appeal is now spreading across Canada.
For the Mission Group, the company’s focus is not on single-family homes, but on higher-density residential projects. Potential buyers they chat with at the sales level reinforce this message.
Mission Group is currently working on the completion of the Bernard Block multi-tower commercial residential project and advancing development on 550 Doyle Avenue. Project in partnership with UBC Okanagan and the long awaited development of the Aqua Tower on the water in the mission.
Friesen says they see ample opportunity for further growth in Kelowna, with a changing philosophy in the neighborhoods with a shift to higher density housing developments in traditional single-family neighborhoods.
“People want to live in apartments where amenities are right next to each other, which reduces the need to drive everywhere, awareness of the need to reduce greenhouse gases, and a better lifestyle,” said Friesen.
Friesen admits that the boom times for sellers have placed tougher financial barriers for renters and first-time buyers who are struggling to make a down payment.
He says mission group projects in some ways consider providing affordable housing for those who qualify.
“We’re not making a big impact with this, but we’re trying to do our part,” he noted.
“We see in the short term that the market will normalize to some extent, those traditional market cycles will return, but overall we see Kelowna as an exceptionally healthy market for the next few years.”
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City of Kelowna Real Estate
