A Home In Kelowna Costs How Much?
There were 50 residential home sales last week in Kelowna at an average sale price of $520,000. Ho hum. When people ask “What is the cost of a home in Kelowna?” The answer can vary. The most expensive home was in the Upper Mission selling just over $1.9 million and the most affordable last week was a bi-level in old Glenmore for $290,000. Weekly comparisons aren’t that reliable because a lakeshore sale or two can significantly skew the numbers one way or the other but the same week in 2013 saw 43 residential sales at an average of $589,000. A $4.2 million home in Lakeview Heights sold this time last year which bumped the average way up.
So far, year-to-date we’ve generated 1,436 residential sales in Kelowna compared to 1,262 this time last year. I think the 1,436 figure is still low and there’s still room for a surge in this number. All indications are that we’re in for a good Summer in the real estate sector but for a community like ours with a hundred thousand people, in blue-chip town where people want to retire and with interest rates at all-time lows there’s no reason we shouldn’t be generating 300 sales a month as a norm.
The upsurge in sale prices are getting trickier and trickier to figure out and explain to people. So far this year the average sale price has been $531,000 compared to $472,000 this time in 2013. We’re over half way through the year and using examples of high end sellers letting their homes go for $1.8mm when they paid $2.3mm in 2008 is getting old and I’ve stopped believing that argument myself. Fact is that it’s undeniable that prices are simply going up and buyers better adjust.
One bedroom apartment sales are selling reasonably strong and pretty much mirror what has been happening with the rest of the housing market. Unit sales are up 18% over last year and prices are up 7.7% year-to-date. The ten year trend for 1 bedroom apartments shows an increase of 34% in prices from $135,000 in 2004 to $181,000 this year.