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The CBC recently reported on the frustration felt by potential home buyers trying to navigate the challenges of a red hot Canadian real estate market. In large urban centers like Toronto, home prices have skyrocketed, with the average home in the Greater Toronto Area costing $ 1,104,509 in March 2021, a staggering 22.5% increase over the previous year, according to the Toronto Regional Real Estate Board. A lack of inventory is further adding to the challenge for those looking to purchase in big city regions. In a press release, President of the TRREB, Lisa Patel, commented, “While the robust market activity is indicative of widespread consumer optimism, it is also shedding light on the sustained lack of inventory in the GTA housing market, with implications for affordability.”
A lack of affordable housing, coupled with changes in how Canadians are prioritizing lifestyle preferences and moving into permanent remote workplace situations in response to the pandemic era, has many big city Canadians looking to Kelowna, as part of the current trend of “urban exodus” seen across North America. Aleski Clark, who works remotely in software partnerships for a financial company, made the move from Toronto to Kelowna in March 2021.
"I moved because I love the Okanagan lifestyle, I don't think I'll be impacted career trajectory-wise by working remotely and can have my money go much further,” he said, when asked about his motivation to make the move, “I have a few friends who also bought here. City life sucked in COVID and I'd wanted to move back West for a while. I sorely missed world-class outdoor activities versus city-centric activities like going to restaurants, bars, clubs and sports games. Also, Kelowna has an international airport, so it's still adequately connected to the rest of the world."
However, though the average single-family home price in Kelowna ticks in at almost $225,000 less than in Toronto, the benchmark price was still $880,000 in April 2021. And, with a noted lack of inventory on the active Kelowna marketplace, buyers seeking more affordable homes and the outdoor lifestyle of the Okanagan are still facing an uphill battle in a competitive market. The CBC referenced frustration on the resale home market with buyers having to navigate blind bidding wars on properties, homes selling for tens of thousands of dollars over asking price, and many homes kept as “pocket listings” by realtors and never even hitting the public market, adding to diminished available inventory.
Projects like Water Street by the Park, a new 3 tower residential development in downtown Kelowna, are setting some solid ground for buyers with competitive fixed price structures. Sales Director, Chad MacTavish, of ACE Project Marketing which is representing the project commented, “The interest we’re seeing from buyers is honestly overwhelming and we’re registering people from not just Kelowna, but all across the country that don’t want to deal with the stress and pressure of the resale market.
“Water Street by the Park is offering a starting price of $359,900, which is letting people literally get their foot in the door of the real estate market. And it’s offering floorplans from 1 bedroom all the way up to 3 bedroom and den units. People are choosing condos over single family homes because they want the simplicity of knowing the price, signing a contract and it’s done. No bidding wars, no overpaying.”
Water Street by the Park is currently accepting registrations and is anticipated to open its Presentation Centre in late Spring 2021, with sales launching shortly thereafter. For more information on the project, and to register for priority sales opportunities, visit www.waterstbythepark.com.
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