Kelowna – Millennials looking to buy their first home and Baby Boomers entering retirement are some of the driving forces behind the strong showing of Kelowna real estate market, according to the first edition of The Vantage Report released today by Vantage West Realty Group.
In a year-over-year study of Central Okanagan home sales, The Vantage Report delves deep into market trends for 15 distinct neighbourhoods. Topping the list are double-digit home price increases in Black Mountain, Lower/Upper Mission and West Kelowna Estates.
“With a beautiful golf course, access to a network of trails, green spaces and close proximity to Big White Ski Resort, we can expect to see Black Mountain continue to thrive,” says realtor A.J. Hazzi, who authors the semi-annual Vantage Report. “In The Mission, properties are selling faster, and for more money, across all property types.”
PHOTO CAPTION: Single family homes prices are up 23 per cent in Black Mountain
Single family homes prices are up 23 per cent in the neighbourhoods of Black Mountain, the Lower/Upper Mission and West Kelowna Estates. Average sales prices are nearing the million-dollar price in both Lower/Upper Mission and Southeast Kelowna/Crawford. An average home in Black Mountain boasts 3,000 sq. ft. at a price of $750,000.
The average sale price of townhomes showed the biggest increase of any property type in Lower/Upper Mission at nearly 25 per cent.
“Popular among the cashed up Vancouver and Alberta buyers, the Lower/Upper Mission will continue to see upward pressure on prices,” says Hazzi. “We expect to see a trend towards baby boomers selling their homes in the Upper Mission to occupy townhomes and condos in the Lower Mission, while cashed-up Generation X buyers snap up their big homes on the hill.”
In the North and South ends of Downtown, homes have gone from the mid $400s to the low $700s. City Council has added an infill housing zone (RU7) in select areas of the downtown core to allow up to four dwellings on a typical 50 x 120 city lot. Rutland has experienced terrific growth evenly across all property types. The average sales price increase year-over-year is 20 per cent, five times the regional average for single-family homes. A duplex in Rutland that could have been purchased for $550,00 last year can fetch $750,000 in today’s market.
The Vantage Report highlights a downsizing trend in home size in Kelowna’s luxury market, with homes ranging from 3,500 to 4,500 sq. ft. Of all luxury properties currently selling over $1 million dollars, more than half are the executive-style new homes typically found on the hills with beautiful views in tow. Teardowns and rebuild construction is active along Lakeshore Drive and the Abbott Corridor.
“With some exciting new towers and luxury townhome complexes coming, we may expect to see condos and townhomes carving out their fair share of the million-dollar-plus market in the years to come,” says Hazzi.
Lake Country is boasting an increase in unit sales, but with relative affordability to other neighbourhoods. An averaged-sized 975 sq. ft. condo can be purchased for under $280,000. In West Kelowna, Shannon Lake still represents one of the most affordable family-friendly neighbourhoods with an average 1,750 sq. ft. townhome selling for just under $470,000.
Adding to the micro-market analysis of 15 neighbourhoods, The Vantage Report offers a market-wide analysis and future forecast. The full report is available from Vantage West Realty Group or online at thevantagereport.com
Growth in average single family home prices year over year.
West Kelowna Estates $666,471 $541,755 23%
Black Mountain $757,259 $615,727 23%
Mission $977,126 $795,278 22.9%
Rutland $512,975 $421,603 21.7%
Glenrosa $502,996 $413,690 21.6%
Westbank $510,079 $428,113 19.2%
N Glenmore/Glenmore $638,967 $543,310 17.6%
SE Kelowna/Crawford $945,126 $812,051 16.4%
Shannon Lake/Smith Creek $640,163 $564,534 13.4%
Dilworth $839,044 $748,974 12.0%
Lake Country $773,046 $703,155 9.9%
Peachland $623,292 $571,655 9.0%
University District $707,857 $662,318 6.9%
Downtown $642,524 $612,681 4.9%
Lakeview Heights $806,993 $775,618 4.1%
Developments to watch
In Downtown Kelowna, the 124-unit 1151 Sunset is nearly sold out. ONE Water Street plans to develop two towers with a mix of commercial on the main floor. If approved, these two towers would be by far Kelowna’s tallest structures at 36 and 29 stories. The Ella is planned as a 20-storey tower on Ellis St., bringing another 116 households to the urban centre. Bringing a much-needed affordable option to our City Centre are: Central Green (500 units); Stockwell (32 units); and Cambridge House, which sold out their 210 studio units.
In Black Mountain, look for Prospect at Black Mountain, bringing 240 mountaintop view homes to the area. Blue Sky at Black Mountain, with building lots that go as high as half a million dollars, and Kirchner Mountain continuing to release their latest phase in 2017.
In The Mission, developers are introducing new properties at Sienna at Sarsons and Gyro Beach Townhomes with The Ponds in the Upper Mission planning another phase.
In Glenmore, new homes in Highpointe, Sheerwater and McKinley Beach are driving up the average sale price for single-family homes.
In Lake Country, The Lakes located between Okanagan and Wood Lake continues to develop its 300-acre, multi-family development offering sweeping views of the Okanagan Valley. Lakestone is quickly selling its 1,300-unit development along the shores of Okanagan Lake.
New developments in Shannon Lake include Haven Villas in Tallus Ridge, Era Townhouses (with only a few remaining), a five-lot subdivision on Hihannah Drive, and Tallus Green Townhomes presently under construction.
In Glenrosa, watch for 60 new units at Glen Eagles, 29 new homes at The Vines on Inverness, an affordable new Okanagan Lake view community called Vine Living, and Crystal View with its 60 building lots.
In Peachland, the New Monaco Development is predicted to double the present population to 9,400.