Kelowna Home Prices Rise 6.1% in First Quarter of 2016
Kelowna BC – A new housing price survey shows that the typical price for a home in Kelowna rose 6.1 per cent during the first quarter of 2016. The average price for a home in the region is now $483,884 according to the latest Real Estate Price Survey. When broken out by housing type, the median price of a two-storey home saw a significant increase of 13.1 per cent year-over-year to $631,242. Bungalow prices rose 2.4 per cent year-over-year to $472,519.
During the same period, the median price of a condominium increased 1.6 per cent to $306,042.
Nationally, Canada’s residential real estate market showed strong year-over-year price increases in the first quarter of 2016. The Greater Vancouver and Greater Toronto Area (GTA) real estate markets continue to lead the country in home price appreciation, with Canada’s economic landscape supporting robust housing demand in these metropolitan areas.
Additionally, an emerging trend of inter-provincial migration to British Columbia and Ontario from commodity-focused economic regions such as Alberta is expected to put further upward pressure on home prices in these areas in the coming months.
The price of a home in Canada increased 7.9 per cent year-over-year to $512,621 in the first quarter of 2016. The price of a two-storey home rose 9.2 per cent year-over-year to $629,177, and the price of a bungalow increased 6.8 per cent to $426,216. During the same period, the price of a condominium increased 4.0 per cent to $344,491.
“Redistribution of labour across the country is further reinforcing disparities among housing markets, as the broader impacts of the oil recession on Alberta’s economy take hold. For the first time in many years, we are witnessing an out-migration trend in the province, as economic conditions and employment prospects dim,” continued Soper.
British Columbia and Ontario are expected to be the top recipients of new household inflows in the coming year. This is expected to further fuel housing demand and price appreciation in larger centres such as Greater Vancouver.
This is in sharp contrast to the situation from 2011 to 2014, and in the mid 2000’s, when a booming energy sector attracted families from all over Canada to Alberta.
FEBRUARY REAL ESTATE SURVEY SUMMARY
22.4% by First Time Buyers (down from 22.8% in January)
17.1% by Move-Up Buyers (down from 20.5%)
16.2% by Buyers Downsizing (up from 14.2%)
13.6% by Relocating and moving to similar property type (down from 14.2%)
13.6% buying Revenue/Investment Property (up from 11.8%)
7.5% moving from Single Family Home to Strata Unit (up from 4.7%)
3.9% buying Recreation Property (no change from 3.9%)
3.1% moving from Strata Property to Single Family Home (no change from 3.1%)
2.6% moving into Retirement Home/Seniors Community (down from 3.1%)
Buyer Type (Family Dynamic):
26.5% Two Parent Family/Children (down from 26.2% in January)
26.5% Couple without Children (up from 21.5%)
11.3% Single Female (down from 19.2%)
13.5% Single Male (down from 16.2%)
20.4% Empty Nester/Retired (up from 13.8%)
3% Single Parent with Children (down from 3.1%)
62.5% from Within OMREB Board Area (down from 63.1% in January)
14.7% from Lower Mainland/Vancouver Island (up from 12.3%)
7.3% from Alberta (up from 6.9%)
4.3% from Other Areas in BC (down from 6.9%)
4.3% from Saskatchewan/Manitoba (up from 2.3%)
3.9% from Outside Canada (down from 5.4%)
2.2% from Eastern Canada/Maritimes (down from 3.1%)
0.9% from NWT/Yukon (up from 0%)