Kelowna 2016 Real Estate Predictions and 2015 Market Summary

Kelowna 2016 Real Estate Predictions and 2015 Market Summary

2015 saw, Kelowna real-estate agents generate 3042 residential sales. That’s residential houses as to strata condominiums. That’s up very significantly from 2014 when we generated just under 2800 sales. The 250 unit increase in sales was certainly a surprise to everybody considering the dropping resource prices that we all experienced last year. The average house sale price for 2015 was $551,000 for residential homes which is up from the $542,000 sale price for 2014. That represents an approximately 2% increase in home sales, which really isn’t bad, considering a lot of experts who were predicting that things were going to go the other way.

 

In regards to strata in 2015, there were 1174 unit sales compared to 1027 the previous year. So in other words, the same story as residential. That’s up approximately 9% over the previous year. The average price last year was $259,000, compared to $243,000. That is approximately a six percent increase in prices for condos over a year. It wasn’t suppose to happen because the big story of the year was the oil dropping, and the impact that it was going to have on our housing market, and Kelowna people were just kind a little bit nervous waiting for something really bad to happen, but it didn’t. There was no argument there were a fewer Albertans here last year buying our houses but it turned out that it was more than outset by the number of people from the coast, people from and people from Vancouver Island who decided to unplug themselves from that community. They are equity rich and perhaps a $500,000 a home sale price doesn’t have the sticker shock that a lot of other people have.

The other major impact that we was the decline in the Canadian dollar or the strengthening of the US dollar. Ten, nine, eight years ago, a lot of people decided to invest in American condos. The American housing market specifically in Arizona, California and Hawaii. What’s happened since then is the value of those houses have gone up, and the value of the American dollar has increased relative to the Canadian dollar. So now maybe eight to ten years later a lot of those buyers are looking for a change. Many sell their USA vacation homes and come back to places like the Okanagan. These people sell out and move back to Canada without the hassle of borders, increased health insurance and IRS filings. Many Canadian buyers who invested in the USA are saying “yeah we made some money but it’s time to cash out”.

 

Andrew Smith - RealtorLiving in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here homes for sale Kelowna mls

Kelowna Housing 2016 …What Happened and What To Expect

Kelowna Housing 2016 …What Happened and What To Expect

To the surprise of many experts 2015 was a strong year in the Kelowna real estate market.  Overall unit sales were up for both condominiums and houses and same for sale prices.  How come?  With the drop in oil it was expected that the Kelowna housing sector would experience a loss since so much of our market is dependent on confident and well healed Alberta buyers scooping up revenue properties and the Kelowna-based oil patch worker who lives here but commutes back and forth.   So many of us were bracing for bad year.   That was pretty much the conventional wisdom a year ago and to be honest it was how I saw things turning out.

 

Kelowna Housing in 2016- 2015 Homes Sold at an Average Sale Price of $551,000

This is what happened though.  There were 3,042 residential home sales in 2015 selling at an average sale price of $551,000.  This is up from 2,796 sales in 2014 at an average sale price of $542,000.  The fourth quarter was particularly strong with 600 sales at an average of $570,000 compared to Q4 in 2014 when we had 548 sales at $525,000 which means 2016 will start strong.     Similar story for condominiums with our MLS recording 1,174 residential apartment sales at a $259,000 average compared to 1,027 sales at $243,000 the previous year.  Digest that for a while.

Kelowna Housing 2016

 

A few things happened that impacted the final numbers.  No one can deny that there were fewer Albertans buying houses here in 2015 but there were a lot more buyers from equity rich  Vancouver’s lower mainland and Vancouver island who find our prices affordable.  People from the coast don’t blink when they’re looking at a $300,000 condo or $500,000 house when they compare our prices to those in North Van, White Rock or Victoria.

 

Another factor was the declining value of the Canadian dollar compared to the US dollar.  Many people took a pass on buying secondary houses in the Okanagan during the housing boom and invested in Arizona, Hawaii and California.  Ten years later their properties rose in value and the extra 30% difference in the US dollar gives them a lot more buying power in the reasonably affordable areas of western Canada that people like to live. These areas include parts of Vancouver Island and the Okanagan from  Salmon Arm to Osoyoos.

Kelowna will always be a blue chip investment

Regardless of whether or not you you’re optimistic or pessimistic about our housing market, Kelowna will always be a blue chip investment for those who only look at those sorts of things but more importantly a pretty nice place to raise a family and call home.

 

All the best from Jo-Ann and I in the new year and thanks for reading.

 

Andrew Smith - RealtorLiving in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here homes for sale in Kelowna bc

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