Kelowna Housing Prices Harsh Realities
There are 778 residential homes on the market right now including 123 priced under $500,000. Right now there are more housing prices in Kelowna over $800,000 (392) than below (387). Problem, what problem? The average sale price for a home in Canada this past January was $470,000 according the Canadian Real Estate Association. The average sale price in Kelowna for the same month was $649,000. Kelowna has always been pricier than the rest of Canada when it comes to housing prices, at least it has since I’ve been tracking it, but the gap in terms of real dollars has never been as wide as it is right now. Reason to worry? Yes if you’re a buyer looking to get into this market based on a down payment and qualifying for a mortgage. Yes if you’re a pensioner or fixed wage earner having to stare down a property tax bill later this Summer. Yes if you’re moving here from places other than Southern Vancouver Island, Vancouver’s Lower Mainland or Toronto. No if you already live here and have been chipping away at a mortgage for a long time.
Why are our prices are high?
I haven’t heard of anyone from here investing in Arizona, California or Hawaii revenue properties in a long time. At some point, The Okanagan became fashionable again in large part to the weakness of our dollar and the recovery of the housing market in those places. There are other reasons of course, including the hassle of crossing the border, medical costs and tax implications. Regardless, it’s good to have those people back.
The Rental Market
Contact us if you want advice on how to screen a potential tenant. Most people aren’t good at asking qualifying questions to potential but we’ll send you a list and offer advice on how to screen your applicants. The best insider tip is to make an excuse to drop by an applicant’s current residence just to see how currently maintain their own or someone else’s home.
There are 320 condo apartments for sale in Kelowna right now. There were 83 sales in February at an average of $333,000. A year ago there were 80 sales for the month at an average sale price of $313,000. Buying a condo in this city is getting tougher as fewer and fewer places are allowing dogs/cats/rentals/smokers etc. The condo market is fairly balanced with four months’ of supply available so we shouldn’t expect prices to climb much more throughout the year.
For an update on the value of your Kelowna property please contact me by phone or email