Kelowna housing market numbers reach pre-financial crisis levels

KELOWNA – The Kelowna housing market has reached levels not seen since 2008, right before the global financial crisis, when the local market was red hot.

Both single-family and multi-family housing starts as well as total residental sales have been trending upward since then, according the Canadian Mortage and Housing Corporation’s spring housing market outlook.

Supported by modest population and employment growth, single-family housing starts hit 695 in 2014 and are predicted to reach at least 675 units this year and next.

However, the majority of new construction in Kelowna over the next two years will be multi-family starts. Demand for existing units has gradually depleted the supply as builders shelved plans for new development. But some 820 units are expected to be constructed this year.

Resale housing sales have also gone back in time to levels not seen since 2007. In 2014, 4,886 residential Multiple Listing Service sales were recorded. House sales are expected to drop eight per cent this year, before rebounding again to over 4,700 in 2016. CMHC says the drop does not mean the market is weakening, but rather a move toward balanced market conditions.

The average resale price for all types of homes is expected to decline slightly in the first quarter this year to $413,666, down slightly from $419,152 during the same period last year.

Single-family homes, however, are expected to drop to $525,000 from $541,898 to $525,000 by the end of the year, before rebounding to $540,000 in 2016.

To contact the reporter for this story, email John McDonald at jmcdonald@infonews.ca or call 250-808-0143. To contact the editor, email mjones@infonews.ca or call 250-718-2724.