At least we’re not talking about the Chinese stock market anymore. When outside influences that we have no control over become part of a Kelowna real estate negotiation, well, it just isn’t good. As an agricultural based economy there was a time when the price of apples was more important than the price of a barrel of oil but outside influences are often the canary in the coal mine giving many of us pause to worry about a bubble. There I said it…the “B” word.
Our version of a housing bubble though might be different than other places. This time last year the average price of a residential home in Kelowna was $545,800 compared to $544,200 this year. It’s certainly been a robust year on the real estate front with over 2,200 homes sold with a Fall market to come. Our advantage here is that even though we’ve become accustomed to having Albertans prop up our housing market, when things slow down there we know that the majority of our homes are sold to locals buying from other locals. The rest is gravy really.
I haven’t heard of anyone putting off buying a home to wait until federal election results are in. With a close three way race that’s too close to call, no one appears to be nervous about what might happen. This is a pleasant surprise. This could change though as election day nears but I somehow doubt it will.
From a historical perspective, 10 years ago the average price of a home here in Kelowna was $346,300 and I’m certain we were worried about outside influences then but things just kept rolling along. As locals we sometimes don’t notice but when we speak with someone who’s just visiting they always remark on how much construction is going on here. Have you walked around downtown lately? With so many condo projects on the go these days outsiders are noticing that our real estate picture is still strong.