Kelowna #5 In Housing Appreciation Values

RE/MAX -A Decade in Review

Kelowna’s residential housing market maintained an even keel during the turbulent early part of the decade. It was not until 2001 that the real estate market began to turn a corner, experiencing the first double-digit increase in home values in several years. As enthusiasm spread and
consumer confidence soared, the housing sector came alive. Limited inventory levels prompted Kelowna’s home values to climb significantly in the latter half of the decade.

The devastating forest fires of 2003 only served to illustrate tight market conditions at the time. Values during the first half of the decade remained relatively flat, hovering between $143,700 in 1995 to $151,766 in during the same period in 2001. From 2002 onward, housing values have appreciated in excess of 10 per cent year after year, with average prices now hovering at $253,019 year-to-date 2005.

Although Kelowna’s heated market is expected to soften somewhat as more and more listings come on stream, multiple offers are still occurring at a breakneck pace in the city. Kelowna’s population has surged, according to Statistics Canada, rising eight per cent from 136,541 to 147,739 between
1996 and 2001. The influx of younger, affluent purchasers and well-off retirees has changed the city’s housing mix to some extent. Sales of new
homes priced over $400,000 continue to experience rapid escalation. Five years ago, this trend was virtually unheard of but each new subdivision appears to raise the bar for the next.

Several downtown condominium projects are finally underway. Purchasers who bought into the developments years ago have realized tremendous equity gains on paper. Overall, Kelowna has been a strong frontrunner in Canada's real estate market over the past decade, ranking fifth out of the 16
markets surveyed in price appreciation.