Kelowna market to remain balanced in 2020
The Kelowna housing market is expected to be a balanced market in 2020, with a zero percent residential sale price expectation. After seeing an approximately eight percent decrease year over year in number of sales, the market is expected to adjust and will remain steady into 2020.
There is currently 6.87 months of inventory and these levels are expected to remain similar in 2020. Taxation, weather patterns and Alberta and lower mainland’s economy will have the greatest impact on the Kelowna market in 2020. The projected population growth for B.C. (approximately 50,000 new residents between now and 2040) will also have a large impact on the housing market in the region as we look ahead to the next 3-5 years.
Condos, one-story detached and two-story detached are the most popular properties in Kelowna with Lower Mission and Westbank Centre being two popular neighborhoods for sales. Kelowna North is expected to be the hottest neighbourhood in 2020 due to its proximity to the downtown core, lake and current development growth.
Move-over and first-time home buyers are expected to drive demand in 2020 while luxury home sales in the region have tapered off year over year as a result of the new speculation tax impacting those with another primary residence.
From a national perspective, RE/MAX anticipates a leveling out of the highs and lows that characterized the Canadian housing market in 2019, particularly in Vancouver and Toronto, as we move into 2020. Healthy price increases are expected, with an estimated 3.7-per-cent increase in the average national residential sales price.
“The drop in sales in key markets across British Columbia can be partially attributed to Canadians’ increasing difficulty in getting an affordable mortgage in the region,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The situation created by the introduction of the mortgage stress test this year, as well as continually increasing interest rates, means more Canadians will be priced out of the market.
Click to read the full RE/MAX 2020 Housing Market Outlook Report.