The latest Royal LePage House Price Survey indicates that home prices in Kelowna indeed took a dip in the third quarter.
The aggregate home price decreased 3.9 per cent to $617,899 from last year at this time. The median price of a two-storey home in the city decreased six per cent—to $676,843—when compared to last year’s third quarter, while the cost of a bungalow fell 1.8 per cent to $635,863.
Kelowna’s median condominium price remained primarily flat, dropping just 0.4 per cent to $432,927.
“We are experiencing increased levels of activity in both sales and construction, especially in the condominium market,” Royal LePage Kelowna managing broker and owner Francis Braam said in a press release. “There is a huge demand for condos and homes with suites. To address the strong demand for condos and high land costs in the region, the city has rezoned parts of the core to allow for higher density levels.”
Braam said the influx of buyers coming from Vancouver continues but not at a pace that is enough to increase prices.
“Buyers from Vancouver, especially from the Lower Mainland, are migrating inland to regions like Kelowna in search of more affordable living but with a similar quality of life and employment opportunities as are available in larger cities,” Braam said.
“The steady demand from within B.C. is being offset by a decrease in purchase activity by foreign nationals, due to the various tax measures that have recently come into place. As a result, home price increases have moderated in the region.”
The median price of a Canadian home increased 1.4 per cent to $630,335 in the third quarter, and Royal LePage forecasts that the aggregate price will increase another 1.5 per cent in the fourth quarter.
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