Local Community Advertising
After skyrocketing a mind-boggling 32% in 2021, median home price increases are expected to moderate to 10% this year.
"I don't think Kelowna will be much different than the 7-10% prediction Royal LePage is making nationally," said Francis Braam, the managing broker and owner at Royal LePage Kelowna.
"I'm pretty optimistic. After a crazy 2021, Kelowna has arrived as a safe, stable place."
Last year was one of record highs for real estate with the median selling price of a typical single-family home ballooning from $866,000 at the end of 2020 to $1.074 million at the end of 2021.
Add the 10% price-hike prediction to that $1.074 million and you have $1.181 million by the end of 2022.
The median selling price of a typical condominium in Kelowna jumped 33% from $345,200 at the end of 2020 to $460,800 at the end of 2021.
Add 10% to that price and a typical condo will be worth $507,000 by the end of 2022.
The facts, figures and forecasts are included in the Royal LePage National House Price and 2022 Market Survey released this month.
Kelowna's housing market took off during the pandemic as people put more of a focus on home.
It was particularly driven by Vancouverites and Torontonians who could sell their homes for $1.7 million and $1.4 million, respectively, and move to Kelowna and pick up a $1 million bargain.
The buying frenzy highlighted the trend of people fleeing big cities during the pandemic to find a small, lifestyle city to live in and work from home.
The price escalations also saw people who already owned a home in Kelowna realize incredible equity and use it to move up to a bigger and better place, further adding to the sales activity and price increases.
Record sales depleted homes-for-sale inventory, causing a supply-and-demand shortage that also drove prices up.
"With these high prices and interest rates expected to go up a bit, at some point potential buyers will say no and banks will also say no to people trying to borrow money," said Braam.
"Every increase prices someone else out of the market."
Even if Kelowna's price increases slow or plateau, the city's real estate market will be considered healthy.
Kelowna is a desirable place to live, work, play and invest, it has a well-rounded economy and is trending to a younger demographic with more families and high-school, college and university graduates putting down roots in the community rather than moving off to bigger cities.
According to the Royal LePage report, Kelowna's $1.074 million single-family home makes it the fourth most expensive city in the country, behind only Vancouver at $1.7 million, Toronto at $1.4 million and Victoria at $1.2 million.
Kelowna is pricier than lots of bigger cities such as Montreal ($595,500), Calgary ($650,800), Edmonton ($469,900), Hamilton ($857,800), Winnipeg ($398,800) and Halifax ($543,000).
Local Community Advertising