When COVID-19 hit Canada, our real estate market came to a standstill. Almost zero transactions happened during April and May of 2020.
As the panic started to wane, Kelowna’s housing market firmly rejected the idea of a “new normal,” creating some unbelievable statistics:
- Luxury sales are up almost 300 percent since last year
- the average price of a Central Okanagan home is up 14 percent year-over-year
- the British Columbia Real Estate Association reported a 42 percent increase in sales volume year-over-year
These numbers aren’t actually surprising if you look at what’s happening around the world.
Consider the growing movement of homeowners ditching crowded cities for more rural and suburban areas. The COVID crisis and the new trend of working remotely is forcing urban homeowners to think twice about life in the big city.
After all, if you could work from anywhere, where would you rather be? Places like the Okanagan and the Sunshine Coast offer better value for money in real estate. Vancouver’s average home sells for $1.4 million while Kelowna’s average home sells for $800K. Even after this year’s price growth in Kelowna, Okanagan real estate is still a better deal.
Remax has suggested that over 75 percent of major Canadian cities are undervalued. According to Western Investor, Canada’s biggest commercial real estate magazine, Kelowna is the top real estate investment location in Western Canada for 2020.
So what makes Kelowna such a great location for real estate value investors? In this post we’ll discuss the demand and supply factors driving the Central Okanagan housing market.
Demand Factors in Kelowna Real Estate
The beautiful city of Kelowna, BC is one of the best places to work and study in Canada. Most people come here for the warm summers, mild winters, access to nature, and the quieter pace of life.
But let’s look closely at the quantitative factors at play.