What’s Happening in Kelowna’s Emerging Downtown Residential Real Estate Market?

01 Oct

Posted: Saturday, October 1, 2016 

by Mark West

Kelowna Oct 1 2016 – As Kelowna’s downtown residential real estate market matures, buyers can expect to see new housing types and trends emerge. The increase in home values in core downtown neighborhoods outperformed more suburban areas that experienced 15%-20% price increases in 2016. “Currently the lowest price home in the downtown market is $439,000 and just a year earlier buyers could easily purchase homes under $300,000, notes Mark West President of Epic Real Estate Solutions.” Buyers looking for affordability now need to plan on living in smaller spaces, complete extensive renovations and add carriage homes or legal suites to cover their housing costs” adds West

The City of Kelowna is seeking public input to help expand Infill housing options with pre-zoned higher density neighborhoods. Expect to see older housing replaced by new 2-4 unit structures on smaller lots. The first downtown building of this type is located at 1295 St Paul Street in Kelowna’s Arts District. The Citi Homes on St Paul project offered by local developer ML Holdings Inc, and built by Edgecombe Builders consists of four 1600-1900 square foot row homes and will be available to move in in May 2017.

Higher density requirements will increase buyer’s options in the condo market in 2017 onward. Concrete mid and high rise condo developers are watching the success of Kerkhoff Construction’s 1151 Sunset closely as an indicator that Kelowna’s condo market has matured to allow for the more of this type of housing. Alternate building forms like cross laminated timber buildings will open a new market for lower rise condos above six-storeys. Expect to see exciting new design and changing sky line in the coming years.

Summary – August Survey
Property Type:
18.4% by First Time Buyers (up from 17.4% in July)
18.2% by Relocating and moving to similar property type (down from 21.4%)
16.2% by Move-Up Buyers (down from 17.7%)
15.4% buying Revenue/Investment Property (up from 12.7%)
13.4% by Buyers Downsizing (down from 14.7%)
8.1% buying Recreation Property (up from 4.2%)
5.8% moving from Single Family Home to Strata Unit (up from 5.2%)
1.8% moving from Strata Property to Single Family Home (down from 5.5%)
1.5% moving into Retirement Home/Seniors Community (down from 2.0%)

Buyer Type (Family Dynamic):
28.9% Two Parent Family/Children (down from 29.7% in July)
21.1% Couple without Children (down from 22.9%)
20.3% Empty Nester/Retired (down from 21.1%)
12.9% Single Male (up from 8.8%)
11.2% Single Female (down from 13.8%)
3.8% Single Parent with Children (up from 3.4%)

Moving From:
54.0% from Within OMREB Board Area (down from 59.9% in July)
16.5% from Lower Mainland/Vancouver Island (down from 17.8%)
15.8% from Alberta (up from 9.3%)
6.5% from Other Areas in BC (down from 6.6%)
2.8% from Outside Canada (up from 2.2%)
2.3% from Eastern Canada/Maritimes (up from 2.2%)
2.3% from Saskatchewan/Manitoba (up from 1.7%)
0% from NWT/Yukon (down from 0.2%)

For more information contact Mark West at mark@epicres.com or call 1.866.679.3742 ext 201

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