Where normal Kelowna people live

Kelowna housing numbers are often misleading because of the large number of high-end homes that sell in this city especially during the summer months.   We’re in the fourth quarter now and things settle down a bit with locals buying from other locals.  People with jobs, kids, minivans and mortgages buying from people who also have jobs, kids, mortgages and minivans.  People like you and me.  There are fewer Albertans in town and things like proximity to schools, churches and grocery stores becomes more important than whether the lower floor custom built yoga studio overlooking the infiniti pool has oxidized air or not.  Local buyers don’t gasp in horror at the site of laminate flooring or a do-it-yourself deck without a permit.  Let’s randomly look at the following neighborhoods….Rutland, North Glenmore and Glenmore. 

Photo: Contributed

These communities have seen prices increase like the rest of Kelowna over the past decade and experienced sharp increases through the first part of 2008 and suffered an erosion of equity starting in 2009.  Same as everyone more or less.  Historically speaking, after looking at the first three quarters in 2007 and 2008 these four sub-areas saw prices skyrocket from $428,000 to $478,000 in one short year then plummet back down to earth in 2009 to $408,000.  That was quite a roller coaster.  Going back in history a bit further, ten years ago Rutland-Glenmore homes sold for an average of $262,000.  So far this year an average Rutland, North Glenmore, Glenmore sells for $447,000 which is up about 6% from last year’s $420,000.   In sum the good news is that things are pretty good for sellers these days.   Note: if you’re checking my math I’ve taken out lakeshore properties in McKinley - it skewed my numbers too much and, just because.  Remember, my blog, my rules.

With 208 single family residential detached homes for sale in these four neighborhoods 8 are priced under $300,000, 19 under $350,000 and 48 under $400,000.  With 440 sales recorded this year it works out to about 50 sales per month.  This means there is about 4 months worth of housing inventory available making it a balanced market. 

I hate to end on a doom and gloom note but the downside is that these areas have historically attracted first time buyers but high price increases over the past decade has changed the outlook for people entering the housing market.  Long gone is the $160,000 bi-level in spring valley and qualifying for $350,000 similar home is significantly tougher making these areas move-up areas with first timers settling for condominiums or townhouses.  Like it or not this is the new normal.  First timers are being forced to make housing choices their parents likely didn’t have to make and at the same time are being forced to save a lot more for a down payment. 

To view Kelowna homes for sale Under $500,000 click here (http://www.okanaganbc.com/listings-search/#/249202450) or call Andrew Smith directly at 250-979-8066.

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Over 22 years experience helping people achieve their dream of home ownership! http://www.OkanaganBC.com

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.