R E A LT Y I N C .
Vantage THE
REPORT
Q1/Q2
We believe in the importance of families, building and improving communities, and in serving others. To that end we embrace the values of teamwork, creating joy in every situation, the mastery of our craft, placing our clients first, and creating stellar experiences for all. That’s who we are. And it’s what you can count on every time we do business, and life, together.
Believe WE
VA N TA G E W E S T R E A L I T Y. C O M
2017 OKANAGAN VANTAGE REPORT • 2
R E A L E S TAT E . R E T H O U G H T.
Data Source: Photo from Vantage West Realty Inc.
W
elcome to the first edition of The Vantage Report. This
is a first of its kind
publication for the Okanagan. It’s aimed at bringing real time information to the residents of Kelowna.
Now I am not a professional writer nor was
IF YOU’RE HOLDING THIS PUBLICATION IN YOUR HANDS, YOU’RE NOW IN THE INNER CIRCLE.
My name is Adrian Hazzi and I have lived
I paid to do this research. This publication is the result of a stellar team effort by the men and women of Vantage West Realty. Our goal is to bring our neighbors interesting, informative and insightful, real time information about the communities we play in, work in, worship in, raise our children
in the Okanagan since 1989. I love our
ambiguous and too general to offer any
in, and that we call home. We invite you
region and it is my honor to be part of its
truly valuable insight. To that end we have
to dive in, find the neighborhood you live
growth. As an owner of a Kelowna based
decided to privately produce the most
in, and see how the numbers compare to
real estate firm, an active developer, and
comprehensive publication on local real
other neighborhoods. We’ve tried to have
a new home builder, it’s a passion of
estate information available... anywhere.
a little fun with this endeavor. We hope
mine to study area market cycles, track
We’ve all heard that the average sales
you enjoy reading it
all of the local economic drivers and
price in the Okanagan is up and that
as much as we’ve
market influencer’s, and then share the
inventory is low, but what about individual
enjoyed producing it.
information with my team, our clients,
areas? How can we break it down into
and our family and friends. If you’re
manageable, understandable, quantitative
holding this publication in your hands,
data? Which local pockets are growing the
you’re now in the inner circle. I am of
fastest? The slowest? Which properties
the opinion that the current information
are the hot commodities right now? And
available to us as Kelowna home owners
what are the trends, and where are the
lacks depth, clarity, and is too
investments, for the future?
2017 OKANAGAN VANTAGE REPORT • 3
CONTENTS
07
2017 O K A N A G A N VA N TA G E R E P O R T
Nationwide average home sale price We break down the average home price and show you hard figures Province to Province.
17
22
We have seen the number of properties
You probably won’t be surprised to
Advice column
purchased for investment increase by
hear properties are selling faster, and
40%, but not all real estate investments
for more money, across all property
AJ Hazzi explains how millions of Cana-
in Kelowna have performed equally...
types in this area.
10
INVESTOR UPDATE
lower/upper mission
dians nearing retirement can safely leave the workforce and turn their primary residences into lifelong passive income.
13
MARKET WIDE
21
DOWNTOWN Read more about the hype surrounding the downtown core, RU7 zoning, and the
The hot real estate market in Kelowna!
surprising decrease in sales alongside an
Read for more information on some of the
increase in listings.
trends and driving forces we are seeing going into 2017 Q3.
15
25
BLACK SWAN
dilworth
Okanagan Lake reaches highest level
With little to no new development
since 1948! What does this mean for
and a low supply of inventory, read
lakeshore properties?
to see what’s in store for Dilworth.
2017 OKANAGAN VANTAGE REPORT • 4
Data Source: All photos from Vantage West Realty Inc.
27
North glenmore/ glenmore Check out the Glenmore community statistics. A 23% decrease in sales may seem alarmingly high for this area, flip to page 27 to find out the real story of whats driving this.
35 28
40
university district
west kelowna estates
The 11.6 million dollar project to extend
On par with many regional trends,
John Hindle Drive is only one of the
it’s not hard to see why so many
major changes continuing to fuel
residents love this area!
growth in this area.
south east Kelowna & crawford This area is more than just trails at Crawford and the infamous Gallaghers Golf Course, we’ve seen the second fastest growing number of listings, of all types, in this region!
AT THE MOMENT WHAT WE HAVE IS HEALTHY GROWTH
33
36
Lake country It’s hard to miss what’s going on in Lake Country these days, read more about
49
peachland
the historic breaking economic growth
Although this area is seeing a below
we’ve seen and how the province-wide
average increase in sale prices, read more
Open for Business Award is affecting
about area improvements that may help
both residential and commercial activity.
speed up the present slow down.
black mountain Unbeknown to many, the Black Mountain area has been having a monster year! Flip to page 33 to read more.
39
50
Read more about how the wine trail has
Wondering, where are we now? We’re
brought some warranted attention to
about to tell you where we’re going.
Lakeview heights
Where we’re going
this community. Data Source: All photos from Vantage West Realty Inc.
2017 OKANAGAN VANTAGE REPORT • 5
M O R TG AG E S TAT S
O K A N A G A N VA N T A G E R E P O R T • Q 1 / Q 2 • 2 0 1 7
72%
21%
7%
FIXED RATE MORTGAGES
VARIABLE MORTGAGES
COMBINATION MORTGAGES
72% of all Canadian
21% of all Canadian
7% of all Canadian
mortgages are fixed rate.
mortgages are variable
mortgages are a combination
or adjustable.
of rates.
18%
10%
DOWN PAYMENTS
DOWN PAYMENTS
18% of first-time buyers used
10% of first-time buyers withdrew
loans and gifts from family for
money from their RRSP for
their down payments.
their down payments.
Data Source: Research from Canadian Association of Accredited Mortgage Professionals, 2016/2017.
2017 OKANAGAN VANTAGE REPORT • 6
O K A N A G A N VA N T A G E R E P O R T • Q 1 / Q 2 • 2 0 1 7
N AT I O N W I D E
AV E R A G E H O M E P R I C E B Y P R O V I N C E
year-over-year basis in October 2016. Greater Vancouver
$481,994
and Fraser Valley posted the largest year-over-year price
ACTUAL NATIONAL AVERAGE
The national average sales price rose 5.9% on a
price for homes sold in October 2016.
increases at 24.8% and 32.5% respectively.
$313,723 YUKON
$308,310
$254,207
NORTHWEST TERRITORIES
NEWFOUNDLAND & LABRADOR
$189,979 PRINCE EDWARD ISLAND
$288,979 QUEBEC
$273,573 MANITOBA
$160,651 NEW BRUNSWICK
$606,787 BRITISH COLUMBIA
$391,692
$571,896
ALBERTA
ONTARIO
$213,046 NOVA SCOTIA
$284,545 SASKATCHEWAN
Data Source: Research from CREA, 2016/2017.
2017 OKANAGAN VANTAGE REPORT • 7
O K A N A G A N VA N T A G E R E P O R T • Q 1 / Q 2 • 2 0 1 7
ECONOMICS
T H E E C O N O M I C S B E H I N D K E L O W N A’ S R E A L E S TAT E B O O M
24 M O N T H S
22 MONTHS
18 MONTHS
INCREASED RENTS
16 MONTHS
DECREASED VACANCIES 14 MONTHS
INCREASED RENTAL DEMAND
Vacancy rate down to 0.5% in 2016.
Median rent for 2-BDRM unit up 14% year over year.
PROPERTY PURCHASE DEMAND Days to sell down 31% on Townhomes, 26% on Condos, 10% on Single Family Homes.
More People Want to Rent.
12 MONTHS
POPULATION GROWTH Kelowna is Sixth Fastest Growing City in Canada.
3 MONTHS
JOB GROWTH Unemployment down 49% year over year.
GDP GROWTH 1 MONTH
#1 Entrepreneurial Region in Canada! Business licenses up 15.4% over 5 years.
Data Sources: GDP Growth - Central Okanagan Economic Development Commission, Economic Indicators Q1 2017. Job Growth - Statistics Canada, June 2017. Population Growth - Statistics Canada, 2016 Census. Decreased Vacancies - Canadian Housing and Mortgage Corporation, 2016/2017. Increased Rents - PadMapper, 2016/2017. Property Purchase Demand - Okanagan Mainline Real Estate Board (OMREB), 2016/2017. Increased Property Prices - OMREB, 2016/2017.
2017 OKANAGAN VANTAGE REPORT • 8
INCREASED PROPERTY PRICES Single Family Home Sale Prices up 14%.
O K A N A G A N VA N T A G E R E P O R T • Q 1 / Q 2 • 2 0 1 7
DEMOGRAPHICS
W H AT D O M I L L E N N I A L S WA N T I N A H O M E ?
64%
47%
LARGE MASTER BEDROOM
75%
NEW APPLIANCES
54% TWO-CAR GARAGE
46%
SOLAR PANELS/ ENERGY STORAGE
LUXURY KITCHEN
45%
41%
SOLID HARDWOOD/ STONE FLOORING
FINISHED BASEMENT
38%
38%
SMART HOME SYSTEM
ABOVE-AVERAGE NEIGHBORHOOD
37%
34%
OUTDOOR DECK (FIRST FLOOR)
33%
LESS THAN 10 MILES FROM MAJOR CITY
RECENTLY CONSTRUCTED (4 TO 10 YEARS)
29%
30%
LUXURY MASTER BATH
LESS THAN 25 MILES FROM MAJOR CITY
29% 4 BEDROOMS (ONE EXTRA)
25%
OUTDOOR ENTERTAINMENT SPACE
20%
ABOVE AVERAGE SCHOOL DISTRICT
25%
31%
BASIC OUTDOOR LANDSCAPING
26% LUXURY LANDSCAPING
INGROUND POOL
09% EXTRA-LONG DRIVEWAY
24% 1+ ACRES
Data Source: 1,000 millennials were asked what matters most when shopping for a home. Research from Northshore Fireplace, 2016/2017.
2017 OKANAGAN VANTAGE REPORT • 9
ADVICE COLUMN
BOOMERS: EXIT THE RAT RACE, GROW PASSIVE INCOME FOR LIFE By AJ Hazzi
AJ HAZZI EXPLAINS HOW MILLIONS OF CANADIANS NEARING RETIREMENT CAN SAFELY LEAVE THE WORKFORCE AND TURN THEIR PRIMARY RESIDENCES INTO LIFELONG PASSIVE INCOME
A
EXAMPLE 1:
Condo Charles Investor profile: Single male, early 50s; sold his house and business in Toronto and relocated to Kelowna. Available capital: $800,000. Desired reality: Purchase a small new condo unit downtown for cash and invest
fter years of steady growth in our major centres, never has there
the balance in residential real estate with hopes of earning $50,000 per year passive income. Does not want to have to work.
been a time where it makes more
Step 1: Get situated. Charles found a beautiful one-bedroom loft for approximate-
sense to downsize your primary
ly $300,000 in the downtown core – modern and close to all amenities.
residence, shrink your footprint, and experience
Step 2: Purchase a triplex. Charles bought a triplex within three blocks of his loft
the freedom of exiting the rat race while earning
for $650,000, which brought in $48,000 per year. The property was financed
passive income for life and watching your net
using a 35% down payment of $227,500, for a net income of $22,200.
worth continue to grow into your retirement
Step 3: Purchase a duplex. Charles’ duplex is in an area 10 minutes away. He
years. Assuming 25 years of both runaway and
bought it for $630,000, and it generates $43,200 a year. The duplex was financed
conservative growth expectations, I can confi-
with a 25% down payment of $157,500, for a net income of $12,600.
dently assure you that your $500,000 invest-
Step 4: Purchase a second duplex. Charles’ second duplex property is 90 minutes
ment will not only split off the income you need
outside of town, but it had excellent rent increase potential. He purchased it for
to make your ‘elegant exit,’ but will also become
$350,000 with 35% down; it’s generating a net income of $13,200.
a sum of money healthy enough to be representative of multi-generational wealth. I have had
Portfolio value: $1.61 million (not including condo)
the pleasure of consulting with a fair number of
Total down payments: $507,500
Boomers who are looking to invest their nest
Gross annual income: $120,000
egg strategically in order to be able to live off of
Principal, interest, taxes, insurance and contingency: $72,000
the return provided by their investment in real
Net income: $48,000 per year
estate. Here are two real-world examples of how
Charles also has a $200,000 line of credit available to him on the condo he lives
I was able to help investing individuals and cou-
in, which he can lend or invest at 8% interest, earning a further $10,000 per year,
ples do exactly that, using investment strategies
spread on the 3% LOC interest.
that took six months to a year to execute – with no expertise or MBA required on their part. 2017 OKANAGAN VANTAGE REPORT • 10
Total income from equity: $58,000 per year
2017 O K A N A G A N VA N TA G E R E P O R T
Q1/Q2
HOW TO GET TO 26% ROI
These real-world examples demonstrate what’s possible with a real estate investment strategy. For the sake of argument, let’s assume you can sell your present home at a profit of $500,000. (A higher profit would mean even more leverage) If $500,000 earns you $50,000, that’s an
THESE REAL-WORLD EXAMPLES DEMONSTRATE WHAT’S POSSIBLE WITH A REAL ESTATE INVESTMENT STRATEGY.
outstanding 10% ROI, but there’s additional good news. The mortgage pay down taking place on your loans adds another $24,000 to your net worth each year. Using conservative growth of 3.5%, an investor can see $56,350 in capital gains in the first year alone, meaning your total income
EXAMPLE 2:
Resort Property Randal & Rebecca
for the first year will be more than $130,000 – a
Investor profile: Mid-40s couple tired of working in the oil patch. They sold their
total ROI of 26%. If you’re playing the long game
property in Fort McMurray, Alberta, and relocated to Kelowna, BC, in hopes of
with these properties and intend to own them
fully retiring. Available capital: $500,000
for 20-plus years, a 55-year-old investor, as he
Desired reality: Generate enough income to be able to fully retire.
approaches 80 and looks at succession planning, will have a debt-free portfolio worth approximately $4 million, which will generate an income of $250,000 per year. How’s that for a legacy?
Step 1: Purchase an eight-plex. Randal and Rebecca found an eight-plex building slightly out of town for $900,000. Because an eight-plex is considered commercial real estate, it required a 25% down payment; with buying costs, it accounted for a $250,000 investment. Step 2: Purchase three resort condos. The couple put 20% down on three units ranging from $350,000 to $450,000. These waterfront condos with special hotel
IF YOU’RE PLAYING THE LONG GAME, A 55-YEAROLD INVESTOR, AS HE APPROACHES 80, WILL HAVE A DEBT FREE PORTFOLIO WORTH $4 MILLION, GENERATING $250,000/PER YEAR. HOW’S THAT FOR A LEGACY?
zoning allow for short-term off-season rentals. Step 3: Divvy up management responsibilities. Rebecca handles management of the resort condos, while Randal is in charge of the eight-plex. Condo gross income: $108,000 per year ($1,800/week for 12 weeks; $1,800/ month for eight months) Principal, interest, taxes and strata costs for all three units: $80,000. Net income from condos: $28,000 per year Eight-plex gross income: $100,800 per year (each unit $1,050/month) Principal, interest, tax, insurance and contingency: $77,000 Net income from eight-plex: $23,000 per year Total portfolio value: $2.1 million
Total net income: $51,000 per year
2017 OKANAGAN VANTAGE REPORT • 11
MARKET WIDE
P E R C E N TAG E O F U N I T S P E RSCOELNDTA B YG E T YSPOE L D
Y E A R OV E R Y E A R C H A N G E BY P R I C E
BY H OUSI NG TYP E
%Chg (yr)
Marketwide
2017
2016
Single Family
$ 697,790
$ 615,824
13.3%
Townhouse
$ 455,748
$ 394,172
15.6%
Condo
$ 334,855
$ 294,220
13.8%
Price per sq/ft
$ 291.05
$ 246.19
18.2%
Single Family (53.6%)
Condo (29%)
Townhouse (17.4%)
This market widelook look This graph graph shares the marketwide at during at the the types of units sold during Q1 & Q2 2017 in Kelowna.
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
Data Source: OMREB Q1-Q2 2017 total sales by housing type.
MARKET WIDE: AVERAGE SINGLE FAMILY HOME PRICES 900K
600K
300K
0K 2012
2013
2014
2015
2016
2017
Data Source: OMREB - Average annual single family home prices, January 2012 - June 2017.
2017 OKANAGAN VANTAGE REPORT • 12
Potential Photo
2017 O K A N A G A N VA N TA G E R E P O R T
B
Q1/Q2
eing named the fastest
On another hand we have this amazing demographic driver in the Millennial’s,
growing city in Canada, one
who are all coming of age and now able to buy their first home. Like a food
of the top wine regions in the
chain, markets are driven from the bottom up. Having to compete with one
world, and one of the best
another for the scarce supply, coupled with the fact that investors have been
municipalities to do business in, has really
buying up similar property types, we are starting to see the first time buyer get
boosted our image in the past couple of
priced out of the detached home market. This means buyers are opting for
years. Anyone who paid taxes on their
townhomes, half duplexes, or condominiums in order to stay under that
new assessed value this month, knows that
$475,000 threshold.
prices are up. But, what’s going on beyond
The other demographic driving our market is the Baby Boomers, as they enter
the average sale price? What are some of
retirement and their empty nest years. For them, this is the ideal time to down-
the trends and driving forces we are seeing
size, take the profit on their larger, more expensive homes and move into one of
going into the third quarter of 2017? Many
the many new developments in a lower price bracket. At the moment, executive
are surprised to learn that overall sales
homes are selling to Vancouver Gen Xers who are taking advantage of the mas-
figures are down this first half of the year.
sive price gains they’ve seen over the past 10 years in the lower mainland.
This can be attributed, in part, to our extra
They are finding both the lifestyle and the lower relative real estate prices too
long winter, some political uncertainty, a
tempting to ignore.
still struggling Alberta market, tightened lending rules, government intervention at the federal and provincial levels, and these damn floods!
LIKE A FOOD CHAIN, MARKETS ARE DRIVEN FROM THE BOTTOM UP.
FIRST TIME BUYERS ARE GETTING PRICED OUT OF THE DETACHED HOME MARKET.
That said, the lack of total sales largely came down to seriously low inventory. So the demand still way outstrips the supply. Kelowna Realtor’s ® will tell you story after story of multiple offer situations and losing out yet again on a property for their clients. At times it feels like the only way to win one of these bidding wars is to go in without any subjects and all cash for substantially over list price. This is not an option, nor is it advisable for most people, especially first time buyers. Many buyers are getting discouraged and giving up, while others are simply being priced out of the market, as 3 months on the sidelines results in the home they wanted going for
Data Source: Photo from Vantage West Realty Inc.
an additional $30,000. 2017 OKANAGAN VANTAGE REPORT • 13
MARKET WIDE
O K A N A G A N VA N T A G E R E P O R T • Q 1 / Q 2 • 2 0 1 7
2017 will be remembered as the height of the construction boom. We are seeing building lots at premium prices getting snapped up
WONDERING HOW YOUR COMMUNITY STACKS UP AGAINST THE REST?
by builders. Trades are once again hiking
Take a peek at the chart below to see the growth in average single family home
their rates and cherry picking jobs. All of this
prices year over year.
translates to more expensive new homes being offered to the consumer. Develop-
Community
%Chg (yr)
2017
2016
West Kelowna Estates
$ 666,471
$ 541,755
23%
Black Mountain
$ 757,259
$ 615,727
23%
Upper/Lower Mission
$ 977,126
$ 795,278
22.9%
Rutland North/South
$ 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%
Lake Country
$ 773,046
$ 703,155
9.9%
Peachland
$ 623,292
$ 571,655
9%
University District
$ 707,857
$ 662,318
6.9%
Downtown
$ 642,524
$ 612,681
4.9%
Lakeview Heights
$ 806,993
$ 775,618
4.1%
ers offering new homes in the $600,000 to $800,000 price range cannot build fast enough. Established communities like Wilden, Black Mountain, and Tallus Ridge are really expanding, adding hundreds of home sites in the past year. New communities like McKinley Landing, Parkside at Clifton Road, and Highpointe Terrace in the Glenmore area have all sold extremely well and show a trend towards modern, contemporary design. It has been great to see some of the key pieces of property in our downtown core get developed. This includes developments such as 1151 Sunset and the site of One Water Street, which will fill up the corner of Water
2017 WILL BE REMEMBERED AS THE HEIGHT OF THE CONSTRUCTION BOOM. Street and carry down Sunset to Ellis. Further
Data Source: OMREB - Average single family home sale price data, Q1/Q2 2016, Q1/Q2 2017.
in to downtown, sales are set to begin for another key site where the home of the Ellis
downtown neighborhoods is providing a new kind of property type for Kelowna
and Lawrence mashup “Ella” will soon reside.
home buyers. On the heels of the City of Kelowna’s infill challenge, we are seeing
The skyline of our lake city is filling out, with
some great innovation and the use of smaller spaces, from modular container
a few more iconic projects on the way. The
homes to contemporary row housing with communal courtyards. Through the
South Pandosy Village continues to develop
urbanization of our city core, we are seeing more and more people getting
into a vibrant upscale community. With Sopa
around by bicycle than ever before, a reduction in crime and overall a more con-
Square nearing completion, and many more
nected, renewed vibe in this area.
small developments in the village about to
With so much renewal and re-imagining going on in our city, it is going to
come on stream, you can expect to see this
be exciting for residents to watch it all take shape and come alive, with new
area really start to shine in the months
activity, new communities, improvements to our transit system, and the
ahead. Infill development throughout our
widening of our highways.
2017 OKANAGAN VANTAGE REPORT • 14
O K A N A G A N VA N T A G E R E P O R T • Q 1 / Q 2 • 2 0 1 7
B L AC K S WA N
OKANAGAN LAKE REACHES HIGHEST LEVEL SINCE 1948! By AJ Hazzi
A
Data Source: Photo from The Canadian Press.
ll of our news feeds are full with images of devastated
started turning to their lawyers to get them out of pending contracts, once the news that the dock they’d bought was underwater and unlikely to weather the
shore-lines, missing beach-
storm. There are approximately 1200 to 1500 docks that require some sort of
es, and stormy white caps.
repair or rebuild... So, what effect might this have? Lakefront homeowners are
Sadly, the ramifications of the record
not only faced with the taxing process of submitting notification and applying
lake level will be a reality for some time.
for approval as outlined in the Water Sustainability Act and Land Act, but they
Many people are unaware that a large
must also meet local government requirements. Many of these properties not only
percentage of the docks and boat hous-
have private docks, but, also fences built out to the water line. What has been
es you see jutting out from the shoreline
seemingly forgotten is that these homeowners don’t technically own that land.
of these lake front homes, fall into a
With the Province owning and regulating the use of the foreshore, we can be sure
category called “non-conforming”.
that regulations are going to be much tighter. Another prominent land baron and lakeshore resident has said that he expects to see the prices of Kelowna lakeshore
THIS COMMUNITY SHOWED BOTH SOLIDARITY & GRIT.
property come down even after the lake levels retreat, due to this dock issue. Also being negatively impacted are our tourism and seasonal vacation rental markets. According to a local property manager, overall rental bookings have gone down with many cancellations rolling in as well. With boating off the table for now and our beautiful sandy beaches submerged, the reality is that many would be vacationers are deciding to take their week of holiday elsewhere. On the positive
What this means is that once they reach
side, however, the people of this community showed both solidarity and grit by
the end of their lifespan, they cannot be
banding together to fortify the shorelines as best they could. It took a huge effort
rebuilt. Unfortunately, most of our lake
to make, haul, and stack the 1.5 million sand bags that were positioned to protect
docks predate the changes to the rule.
our property from the water that just seemed to keep on coming. At the time of
In the past, the grandfathering of these
this writing, lake levels have been reported to be on a lowering trend. However, we
docks has been a major selling feature for
aren’t out of the woods yet, as the weather forecast for the coming week has a
these older lakeshore properties.
high likelihood of more storms that could cause further erosion. By the time this is
Now, this will be a big consideration for
released, my hope is that the weatherman was mistaken.
lakeshore homebuyers, as many have 2017 OKANAGAN VANTAGE REPORT • 15
PHOTO FPO I N V E S TO R U P DAT E
FULL DUPLEX, AVERAGE SALE PRICE 600K
400K
200K
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB - Average annual sale price, January 2012 - June 2017.
3-BEDROOM TOWNHOUSE, AVERAGE SALE PRICE 500K
450K
400K
350K 2012
2013
2014
2015
2016
2017
Data Source: OMREB - Average annual sale price, January 2012 - June 2017.
2017 OKANAGAN VANTAGE REPORT • 16
2017 O K A N A G A N VA N TA G E R E P O R T
A
Q1/Q2
s you might expect, with two years in a row of
double digit property value growth and the headlines
that go with it, we have seen the number of properties purchased for investment increase by 40%. This is the result of baby boomers looking to augment their retirement income and out of towner’s catching wind that Kelowna’s real estate boom is in full swing. Now, not all real
INVESTORS IN THE NEW RU7 DESIGNATIONS ARE SEEING HUGE GAINS IN VALUES ON WAR TIME HOUSES.
estate investments in Kelowna have performed equally. Those holding properties in the new RU7 designations are seeing
satisfied with breaking even as they watch their equity pile up from mortgage
huge gains as values on war time houses,
pay down and capital gains. Many of the people that have been holding prop-
in both the North and South ends of
erty since before the boom are electing to cash in at this stage. With thousands
downtown, have gone from the mid
of units of purpose-built rentals coming down the pike, in the next 1-2 years, we
$400’s to the low $700’s. This is all due
expect to see the vacancy rate climb and rents on older units soften. With this
to the infill development potential that
we may see prices stabilizing on multi-family.
these city lots hold as 4 units are now permitted on a regular sized city lot.
DOUBLE DIGIT PROPERTY VALUE GROWTH. Multi family properties including duplex-
5-BEDROOM HOMES W/ SUITES, AVERAGE SALE PRICE 800K
600K
500K
es, fourplexes, and apartment buildings have become so scarce that prices have jumped nearly 40%. For example, a duplex in Rutland, that could have
400K 2012
2013
2014
2015
2016
2017
been purchased for $550,000 last year can fetch nearly $750,000 in today’s
Data Source: OMREB - Average annual sale price, January 2012 - June 2017.
market. Rising rents have kept up with sky rocketing values reasonably well. But CAP rates have fallen from 6.0 to 5.0 to 4.0 over the past two years. What this means is that out of town investors are coming in search of yield. Because of our relative affordability compared to their market, and the prospect of a couple more years of property value increases, they are willing to forgo huge positive
WE EXPECT TO SEE THE VACANCY RATE CLIMB IN THE NEXT 1-2 YEARS.
cash flow, 2017 OKANAGAN VANTAGE REPORT • 17
LUXURY MARKET
LU X U RY H O M E M A R K ET BY TY P E
Executive (56.7%)
Acreage (26.4%)
Lakeshore (13.5%)
Townhouse (1.1%)
Condo (2.4%)
This graph highlights the state of the types of homes that comprise the luxury market 2017 in Kelowna. Data Source: OMREB - Total luxury listings and sales by housing type, January - June 2017.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 18
2017 O K A N A G A N VA N TA G E R E P O R T
H
Q1/Q2
ighpointe, Woodland Hills, and Lakestone, have finally filled in
L U X U R Y M A R K E T : AV E R A G E D A Y S T O S E L L
from the last real estate boom. The strip along Lakeshore, in the
200
Lower Mission is going at full speed with teardowns and rebuild construction. All the while, high-end detached modern townhomes in the Abbott Corridor wont stop popping up. With
160
modern looking infill subdivisions commanding large dollars in the Lower Mission, the size of a new home is much smaller than the McMansion
120
era of 2007. People want smarter, more manageable homes in the 3500 to 4500 square foot range. Of all the properties currently
80 2012
PEOPLE WANT SMARTER, MORE MANAGEABLE HOMES IN THE 3500 TO 4500 SQ FT RANGE. selling over $1 million dollars, 56.7% of them are the executive style new homes typically found on the hills with beautiful views in tow. However, what seems to be the new proper-
2013
2014
2015
2016
2017
Data Source: OMREB - Average days to sell, January 2012 - June 2017.
Data Source: Photo from Vantage West Realty Inc.
LUXURY MARKET: NUMBER OF SALES, JANUARY - JUNE 225
ties that can induce someone to part with a million dollars are acreages, which represent 26.4% of the sales. Overall, there seems to be
150
a trend of luxury purchasers looking for land.
THERE SEEMS TO BE A TREND, ONCE AGAIN TOWARDS LOOKING FOR LAND.
75
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB - Total number of luxury home sales, January 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 19
DOWNTOWN KELOWNA CORE
Annual Record 372
182
3.3
54
Sales
Average Inventory
Months of Supply
Days to Sell
-7%
+0.6%
+4%
+3%
98.3% $493,994 Average Sale Price List/Sell Ratio
+0.6%
+6%
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Area Highlights WORTHY OF NOTE: Kelowna’s downtown has seen some great enhancements with some large publicly funded projects, starting with the new RCMP Building on Clement. On Ellis, the 4.4 million dollar Rowcliffe Park Development will take up a 5-acre parcel on the intersection of Rowcliffe and Richter. The Craft Beer Market on Bernard, in the old Paramount Movie Theatre, will open this year while preserving a historic part of Kelowna’s streetscape. And on Doyle, the new Interior Health Building, as well as the Innovation Centre. This influx of infrastructure will certainly bring more jobs and therefore new residents to the downtown core.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 20
2017
Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
D
espite all the hype, sales across the board down-
Downtown
2017
2016
%Chg (yr)
Single Family
$ 642,524
$ 612,681
4.9%
Townhouse
$ 490,014
$ 451,163
8.6%
Condo
$ 408,530
$ 378,287
8%
Price per sq/ft
$ 368.83
$ 321.54
14.7%
town have actually seen an average 7% decrease.
Days to sell has risen slightly to 3% and only a relatively modest 6% in average sale price has been revealed. This is due largely to some very optimistic pricing on some of the potential development property and land assembly. The good news for developers and current owners, is that the area has seen a 21% increase
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
in sale price per square foot of townhomes, a 15% increase in the number of listings, a 98.9% list/sale ratio, and an 8.6% increase in average sale price. Following the completion of the infill challenge, council has rolled out the new RU7 - Infill
The Ella Development will be 20 stories and bring another 116 households to our urban centre. Bringing a much needed affordable option to our city centre are three developments: Central Green – Mixed use, 500 condo/townhomes units, Stockwell – 4 stories, 32 units, and Cambridge House – 4 stories, which has not only sold out their 210 units but also pioneered smart studio living in Kelowna.
Housing Zone in select areas of the downtown core which allows for up to four dwellings on a typical 50 x 120 city lot. This has created instant value
SALES HAVE ACTUALLY SEEN AN AVG 7% DECREASE. and will allow the development of over
H I G H E ST SA L E Y T D : $ 3 , 8 2 5 ,0 0 0.0 0 Data Source: OMREB, Photo from Vantage West Realty Inc.
700 parcels in central neighborhoods in Kelowna. With every boom comes an ex-
DOWNTOWN KELOWNA SINGLE FAMILY HOME PRICES
citing new wave of condominium towers to add more height to the Kelowna sky-
900K
line. After almost a decade long hiatus, some projects that we’ve been waiting for are finally happening, with 1151 Sun-
600K
set’s 124 unit nearly sold out, ONE Water Street plans to develop 2 towers with a mix of commercial on the main floor. If approved, these two towers would be by
300K
far Kelowna’s tallest structures at 36 and 29 stories. A great downtown site in our financial district that has sat empty for years will now become home to another tower on Ellis.
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 21
2017 P Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
roperties in The Mission
are selling faster, and for
Mission
2017
2016
Single Family
$ 977,126
$ 795,278
22.9%
Townhouse
$ 584,615
$ 467,422
25%
Condo
$ 363,457
$ 292,957
24%
Price per sq/ft
$ 323.02
$ 269.71
14.1%
%Chg (yr)
more money, across all property types.
Condos are producing a respectable
increase in listings and sales, along with a 28% decrease in average days to sell, a 24% increase in sale price, and a 29% increase in sale price per square foot. Single-family homes have jumped up 23% to over $977,000. With the average square footage at 3,000 square feet,
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
we are seeing more infill development on streets like Sarsons, El Dorado, and
Kelowna’s Mission continues to perform well above the market norms. Popular
McClure. Contemporary executive homes
among the cashed up Vancouver and Alberta buyers, we will continue to see up-
are replacing the older 1960’s stock
ward pressure on prices. We expect to see a trend towards Baby Boomers selling
on these sought after streets, while
their homes in the Upper Mission to occupy townhomes and condos in the Lower
tear down homes have sold for over
Mission, while cashed-up Generation X buyers snap up their big homes on the hill.
$800,000 to developers looking to split those properties into new two home sites. The average sale price of townhomes showed the biggest increase of any
CONDOS HAVE SEEN A 24% INCREASE IN SALES PRICE.
H I G H E ST SA L E Y T D : $ 5 , 975 ,0 0 0.0 0 Data Source: OMREB, Photo from Vantage West Realty Inc.
property type in The Mission at nearly 25% for the same sized unit.
LOWER/UPPER MISSION SINGLE FAMILY HOME PRICES
Condos were the only sector of The Mission market that saw an increase in
900K
sales year over year, with the average price per square foot shooting up nearly 30% to $342.56 per square foot, due to
600K
inventory falling nearly 22%. This is terrific news for developers introducing new properties like Sienna at Sarsons and the Gyro Beach Townhomes. The Ponds, in
300K
the Upper Mission, have sold out phase 4 with their next phase coming soon! The Ponds will eventually boast a pedestrian oriented Village Centre and, in the near
0 2012
2013
2014
2015
2016
2017
future, Okanagan Mission Junior Middle School. 2017 OKANAGAN VANTAGE REPORT • 22
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017.
LOWER MISSION/UPPER MISSION
Annual Record Sales
Average Inventory
Months of Supply
Days to Sell
48
98.5%
$673,378
-27%
-13%
+1.5%
-23%
+0.4%
+16%
356
200
3.7
List/Sell Ratio
Average Sale Price
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Area Highlights WORTHY OF NOTE: The Mission will soon receive some nice infrastructure improvements, including a roundabout slated for Lakeshore and Collett, an extension to Gordon Drive through to Stewart Road West, a multi-use trail on the north side that will connect to the Bellevue Creek Linear Trail, and an awesome new park site, at approximately 3.6 hectares in size, located on Dehart Road. The commercial options in The Mission continue to improve. There is a new Quality Greens Market and a T-Bones Butcher Shop, not to mention some great new stores on the ground floor of Sopa Square.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 23
D I LW O R T H
Annual Record Sales
Average Inventory
Months of Supply
Days to Sell
47
98.6%
$741,482
-49%
-25%
+60%
-10%
+0.3%
+16%
38
20
3.8
List/Sell Ratio
Average Sale Price
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Area Highlights WORTHY OF NOTE: With little to no new development in this area the supply remains low. Also, demand has slowed somewhat due to the nature of the homes, as they are becoming dated compared to some of the more trendy new developments throughout the city. Yet, despite starting to become somewhat out of fashion, Dilworth properties with their proximity to shopping, amenities, and the nearby international airport, will always remain a safe investment.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 24
2017
Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
I
n the Dilworth area, sales are down 49% and average monthly inven-
Dilworth
2017
2016
%Chg (yr)
tory is down 25%, however days to sell has decreased by 10%. Prices
Single Family
$ 839,044
$ 748,974
12%
Townhouse
$ 607,082
$ 574,018
5.8%
---
---
---
$ 251.11
$ 226.20
11%
overall in the area are up 16%, well surpassing the average of 8.7% across the region. Active inventory is at 20, equating to 3.8 months of supply. Meanwhile, days to sell a townhome have gone down 56% year over year. With an average property value for a single-family home nearly $840,000 for approximately 3,300 square feet, Dilworth
Condo Price per sq/ft
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
continues to be one of Kelowna’s most sought after neighborhoods. So far in 2017, the condo market has been almost non-existent with only one recorded sale, while townhomes are selling fast, and for top dollar, at nearly $200 per square foot for the average 3,100 square foot townhome.
OVERALL PRICES ARE UP 16% DESPITE FEWER SALES. H I G H E ST SA L E Y T D : $ 1 , 6 0 5 ,0 0 0.0 0 Dilworth townhomes, averaging a shade
Data Source: OMREB, Sale and Photo from Tamara Stone* - PREC, RE/MAX Kelowna
over $607,000, sell on average in 24 days, including the 2 week condition period. A
DILWORTH SINGLE FAMILY HOME PRICES
seller of a Dilworth townhome can expect to have offers in the first week of being on the
900K
market and can expect to receive over 99% of the asking price! There is opportunity in this neighborhood for investors who are insightful enough and have the wherewithal
600K
to take properties built in the 1990’s, clean them up, modernize the cosmetics, and turn them around for a nice little profit. Buyers
300K
will pay a premium for a turn-key contemporary looking home in a safe neighborhood like this. Properties in the $750,000 range can be resold for $900,000, or more, with a $50,000 face-lift.
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 25
GLENMORE & NORTH GLENMORE
Annual Record Sales
Average Inventory
Months of Supply
Days to Sell
43
98.6%
$515,361
-23%
-10%
-5%
-23%
+0.1%
+13%
143
63
2.7
List/Sell Ratio
Average Sale Price
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Area Highlights WORTHY OF NOTE: There are a ton of new city initiatives happening in the Glenmore area. The new Glenmore Recreation Park is a community level park that will provide residents with 2 new multi-use sports field facilitates and the new commercial development at The Conservatory site continues to add to this area’s appeal. Phase 2 of John Hindle Drive makes the properties out towards the landfill, off Glenmore Road, suddenly a very attractive student rental option, where entry-level condos, like Yaletown, just became a great investment. With multiple school options, great local amenities, and close proximity to the university and international airport, Glenmore will remain one of the best investments in the city.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 26
2017
Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
T
he 23% decrease in sales
may seem alarmingly high
Glenmore
2017
2016
%Chg (yr)
for this area, but when lot sales are accounted for,
Single Family
$ 638,967
$ 543,310
17.6%
Townhouse
$ 454,197
$ 370,323
22.7%
Condo
$ 276,425
$235,946
17.2%
Price per sq/ft
$ 298.46
$ 239.33
24.7%
the sales activity year over year only fell about 3%. The average single family home in Glenmore, at 2,400 square feet and valued at $639,000, actually commands a higher price per square foot ($257 per square foot) than its more upscale neighbor Dilworth Mountain ($251 per square foot) showing an overall
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
growth in price per square foot of 17%. The Glenmore condo market is extremely
Glenmore. Two developments that are doing extremely well in 2017 are Kelowna’s
strong too, currently selling more than
First Green Street on Modern Way and the development of 50 lots that sold light-
double the number of units this year than
ning fast to builders looking to capitalize on this booming area.
last. With condos now valued at $300 per square foot, a nice 27% gain over last year, you can anticipate developers racing to meet the demand. Expect to see units getting smaller as we trend from an average of close to 1,000 square feet down to units at 900 square feet.
SMALLER CONDO UNITS ARE THE TREND IN 2017.
H I G H E ST SA L E Y T D : $ 1 ,747, 5 0 0.0 0 Data Source: OMREB, Photo from Vantage West Realty Inc.
Townhomes in Glenmore are also seeing a hot year, with the average price per square foot increasing 20%. People who
GLENMORE SINGLE FAMILY HOME PRICES 900K
need a little more space can still get 1,600 nicely appointed square feet for just over $450,000. With a tight supply adding to
600K
the mix, it’s no wonder the townhome inventory goes for over 99% of list price and sells 18% quicker than the same time
300K
last year. With some very exclusive new developments you can expect to see the new homes in Highpointe, Sheerwater, and McKinley Beach driving up the aver-
0 2012
2013
2014
2015
2016
2017
age sale price for single family homes in Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 27
2017 S Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
outh East Kelowna and
Crawford are having a strong
SE & Crawford
2017
2016
Single Family
$ 945,126
$ 812,051
16.4%
Townhouse
$ 694,250
$ 593,286
17%
---
---
---
$ 310.57
$ 269.31
15.3%
%Chg (yr)
start to the year, boasting the
second highest value increase
across all housing types (excluding lots) with average sale prices going up over
22%. During the first half of 2017, average days to sell fell 18% compared to the
Condo
same period in 2016. The average list price of single fami-
Price per sq/ft
ly homes is inching towards a million dollars - $972,880 to be exact, and aver-
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
aging just under 3,000 square feet per home in this area, while taking approximately 51 days to sell in 2017. Townhomes have also gained popularity due to rising prices, with many people looking to retire at Gallaghers finding that their $700,000 no longer buys them a house, but rather a nicely appointed 2,400 square foot townhouse. So far, in 2017, townhome sales are up 43%.
SO FAR, IN 2017, TOWNHOME SALES ARE UP 43% Crawford will always remain one of Kelowna’s most sought after neighborhoods, with its large estate-sized parcels, renowned golf courses, and proximity to some of the best trail networks around.
H I G H E ST SA L E Y T D : $ 2 , 375 ,0 0 0.0 0 Data Source: OMREB, Photo from Vantage West Realty Inc.
SE & CRAWFORD SINGLE FAMILY HOME PRICES 900K
It’s only an 8 minute drive into downtown, all while still feeling far away from the hustle of the city.
600K
300K
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 28
S O U T H E A S T K E LOW N A & C R AW F O R D
Annual Record 78
72
6.3
56
98% $826,895 Average Sale Price
Sales
Average Inventory
Months of Supply
Days to Sell
List/Sell Ratio
-1%
-14%
-27%
-18%
+0.7%
+22%
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 29
2017 R Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
utland has experienced terrific growth across all property
Rutland
2017
2016
Single Family
$ 512,975
$ 421,603
21.7%
Townhouse
$ 335,366
$ 278,788
20.3%
Condo
$ 238,736
$ 194,928
22.5%
Price per sq/ft
$ 239.81
$ 194.36
23.4%
%Chg (yr)
types, with the average sale
price increasing 20% overall
and each housing type increasing by about
7% above the regional average. Townhomes and single family homes are seeing roughly a 21% increase in their value per square foot, while the average condo sale price has shot up 22.5% from $194,928 to $238,736 for a 1,000 square foot condo. All property types in the area are selling faster and closer to list than the Kelowna average, taking only 43
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
days to sell and averaging over 98.5% of the asking price. It’s a good time to be a seller in Rutland! As prices climb, the stock of 3 bedroom townhomes will become the obvious choice for family starter homes. With 1,500 square feet available, for approximately $335,000 on average, we can expect to see this property type perform extremely well in
ALL RUTLAND PROPERTY TYPES ARE AVERAGING OVER 99% OF THE ASKING PRICE.
H I G H E ST SA L E Y T D : $ 1 , 370,0 0 0.0 0 Data Source: OMREB, Sale and Photo from Josh Szalay, Royal LePage Kelowna
the months to come. For instance, because vacancies in the rental market for 3 bedrooms is at zero, first time buyers and inves-
RUTLAND SINGLE FAMILY HOME PRICES 900K
tors will be competing for limited inventory, which is presently at 2.3 months of supply. The Rutland condo market is still the affordable option although less so each month as
600K
we move forward. The average 2 bedroom, 1,000 square foot unit, has jumped up from $195,000 last year to roughly $239,000 as of
300K
the first half of 2017. These condos are selling in 36 days, on average, with about 1 month of supply at the time of this writing. Expect to see more condo developments in Rutland to
0 2012
2013
2014
2015
2016
2017
meet the demand over the next 2 years. Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 30
RUTLAND NORTH/RUTLAND SOUTH
Annual Record 337
120
2.3
43
Sales
Average Inventory
Months of Supply
Days to Sell
-20%
-25%
-13%
-18%
98.5% $398,066 Average Sale Price List/Sell Ratio
+0.8%
+20%
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Area Highlights WORTHY OF NOTE: Rutland’s tag line “We’re just getting started” says it all. Adding more amenities to the area is the addition of Freddy’s Brew Pub Craft Distillery and Lounge, and the revitalization of Rutland Town Centre on Hwy 33 has just begun with the new Centex and their car and dog wash addition! Capital funded projects are also on the rise with the new Chichester Pond Sediment Forebay, Pickleball Courts for Rutland Recreation Park, and the completion of Highway 97 from Highway 33 to Edwards Road. You can expect big things out of this pocket of Kelowna in the coming years.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 31
B L AC K M O U N TA I N
Annual Record Sales
Average Inventory
Months of Supply
Days to Sell
57
98.9%
$698,473
-22%
-13%
+9%
-14%
+0.4%
+17%
73
42
5
List/Sell Ratio
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 32
Average Sale Price
2017
Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
U
nbeknown to many, the Black Mountain area has been hav-
Black Mountain
2017
2016
%Chg (yr)
Single Family
$ 757,259
$ 615,727
23%
Townhouse
$ 492,627
$ 448,325
9.9%
---
---
---
ing a monster year. With the average sale price of a single
family home up 23% - the second highest increase in the region - and properties selling closest to their list price in the region, at 99%, it’s not hard to see why the area is
Condo
being developed so quickly. There are three main residential developments under way,
$ 275.15
Price per sq/ft
Prospect at Black Mountain, bringing 240 mountain top view homes to the area. Blue
16.2%
$ 236.71
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
Sky at Black Mountain, with building lots that go as high as half a million dollars, and
Black Mountain now growing to over 3,000 square feet and valued at over three
are slated to become some of the highest
quarters of a million dollars, space seems to be the norm here.
caliber executive homes in the area. Lastly, there’s Kirchner Mountain continuing to release their latest phase in 2017. With a beautiful golf course, access to a network of trails, green space, and close proximity to Big White, who wouldn’t want to live here?
BLACK MOUNTAIN IS HAVING A MONSTER YEAR. H I G H E ST SA L E Y T D : $ 1 , 8 5 0,0 0 0.0 0 With all of these new developments in tow,
Data Source: OMREB, Sale and Photo from Larry Hayes, Sutton - Hymark Realty
we can expect to see this area continue to thrive. As prices continue to shoot
BLACK MOUNTAIN SINGLE FAMILY HOME PRICES
upwards, you can expect to see a mix of more affordable housing types pop up in
900K
this area too. Townhomes, in particular, are already taking off. A large increase in sales and a big drop in days to sell signals that
600K
this part of the market is really heating up in Black Mountain. The average townhome is 1,900 square feet and is priced at nearly $500,000. With only a small handful on
300K
the market at any given moment, it’s no wonder the average sale price comes in at nearly 100% of its list price! Currently, there is no condo market in Black
0 2012
2013
2014
2015
2016
2017
Mountain. In fact, with the average home in Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 33
UNIVERSITY DISTRICT
Annual Record Sales
Average Inventory
Months of Supply
Days to Sell
52
98.5%
$413,277
-25%
-14%
-55%
-9%
+1.4%
-0.8%
61
25
3
List/Sell Ratio
Average Sale Price
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Area Highlights WORTHY OF NOTE: Continuing to fuel this area’s growth is the 11.6-million-dollar project which will extend John Hindle Drive, and will provide a much needed new route to the UBCO Campus. In addition to reducing the commute times for many of the 8,687 students and faculty, this project will ease congestion on Hwy 97 and provide an alternative for pedestrians, cyclists, and motorists heading to and from UBCO. It will also include the construction of a multi-use paved pathway for pedestrians and cyclists from Glenmore Rd to the Hollywood Rd roundabout at Highway 97. Construction will begin this year and is expected to finish in the spring of 2018.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 34
2017 O K A N A G A N VA N TA G E R E P O R T
S
ingle family homes are
not the major market here.
University
Q1/Q2
2017
2016
%Chg (yr)
Single Family
$ 707,857
$ 662,318
6.9%
Townhouse
$ 475,924
$ 371,288
28.2%
Condo
$ 338,526
$ 284,848
18.8%
Price per sq/ft
$ 295.00
$ 236.00
25%
However, homes in Quail Ridge have seen growth,
with the average 3,000 square foot home commanding just over $700,000. This is up nearly 7% since last year, along side supply which shows an average of about 3 months. Properties other than single family homes are another story. Thanks to a rapidly expanding University of British Columbia, Okanagan Campus (UBCO) and the attention of the international buyer, condos and townhomes have exploded! The average sale price of a townhouse has increased 28% - more than double the regional average of 13%. The University District is seeing record
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
blossomed in recent years. Alongside the new hot spot convenience and liquor store, many restaurants have popped up around the student housing, by U-One on Academy Way, including a plethora of fast food options, ethnic food, and several coffee shops. There appears to be no slow down in site for this area. Expect to see prices continue to climb as demand outpaces supply.
activity with a well above average increase of townhome listings, at 67%, and a strong increase in condo sales at 28%.
CONDOS AND TOWNHOMES HAVE EXPLODED! H I G H E ST SA L E Y T D : $ 8 4 0,0 0 0.0 0 With the U-Communites development selling out quickly and their 5th phase U-Five coming soon, you can expect to see these units getting snapped up with prices at nearly $350 per square foot.
Data Source: OMREB, Sale and Photo from Roma Niessen, Coldwell Banker Horizon
UNIVERSITY DISTRICT SINGLE FAMILY HOME PRICES 900K
Less prevalent than condos, townhome sale prices had one of the largest year over year increases in the region. The
600K
average 1,900 square foot townhome will now fetch just shy of $500,000. Residents of this growing area have some exciting new commercial options as well,
300K
with the new Nesters and the continued Airport Village expansion, Quail Ridge suddenly doesn’t feel quite so far away. University residents have little reason to drive into town as their options have
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 35
2017 A Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
lthough Lake Country’s average unit sales are 6% down
Lake Country
2017
2016
%Chg (yr)
Single Family
$ 773,046
$ 703,155
9.9%
Townhouse
$ 377,903
$ 375,065
0.8%
Condo
$ 279,022
$ 286,039
-2.5%
Price per sq/ft
$ 329.11
$ 275.29
19.6%
from last year, the area has still experienced a 13% increase in
the number of condo sales alongside a 4% increase in townhome sales. Single family homes have risen from $700,000 during the first half of last year to $770,000 during the same period this
year. The average 2,600 square foot single family home is now selling at over $290 per square foot. The Lake Country townhome market is trucking right along with a 17% increase in sales and an average price of nearly $380,000. Interestingly, Lake Country condos have actually seen a 2.5% decline in sale price year over year. The relative affordability makes them a bargain
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
Okanagan Rail Trail as well as the creation of a new Parks and Recreation Master Plan. Adding to the mix of commercial properties in Lake Country is Turtle Bay Crossing, a multi-tenant, commercial retail strip centre development located on the corner of Oceola Road and Highway 97. With 41,000 square feet of retail commercial space on 5.04 acres of land, you can expect to see dozens of new businesses pop up in the coming months.
at the moment!
CONDOS HAVE ACTUALLY SEEN A 2.5% DECLINE IN SALE PRICE. As of this writing, an average 975 square foot condo can be purchased for under $280,000. The population of this area will continue to swell beyond the current 15,000 residents in the coming years as
H I G H E ST SA L E Y T D : $ 2 ,72 5 ,0 0 0 Data Source: OMREB, Photo from Vantage West Realty Inc.
LAKE COUNTRY SINGLE FAMILY HOME PRICES 900K
The Lakes, located between Okanagan and Wood Lake, continues to develop its 300-acre, multi-family development
600K
offering sweeping views of the Okanagan Valley. On top of that, Lakestone is quickly selling its 1,300-unit development
300K
along the shores of Okanagan Lake. To support the population growth, the community is working hard to provide residents with access to new amenities
0 2012
2013
2014
2015
2016
2017
which include continued worked on the Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 36
LAKE COUNTRY
Annual Record Sales
Average Inventory
Months of Supply
Days to Sell
61
98.7%
$579,032
-6%
-12%
-33%
-30%
+0.9%
+13%
218
153
4.5
List/Sell Ratio
Average Sale Price
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Area Highlights WORTHY OF NOTE: Lake Country is becoming increasingly business friendly and has adopted an innovative new business bylaw – a no fee business license in the first year of operation, starting in 2018. It’s hard to miss what’s happening in this region, as we see the community continuing to break historic economic growth records. Following the 2016 Open for Business Award, this booming lake front community continues to set the pace for not only new commercial activity but residential construction as well.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 37
LAKEVIEW HEIGHTS
Annual Record 156
102
4.7
63
98% $639,689 Average Sale Price
Sales
Average Inventory
Months of Supply
Days to Sell
List/Sell Ratio
-13%
-17%
-17%
-7%
+0.9%
+7.5%
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Area Highlights WORTHY OF NOTE: You can expect this neighborhood to continue picking up steam, as the redevelopment of the Lakeview Heights Mall on Anders Road continues with new retail and professional office space. The first phase was completed in late 2016 and the second phase is to be completed by mid-spring 2017 and will be home to a new Nesters Grocery Store. Subsequent phases will include a multi-family rental building and additional retail space targeted towards restaurants and professional tenants. The same developer has also recently purchased the former Lakeview Elementary School site and plans to develop a new multi-family development which will house over 300 units.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 38
2017
Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
Q
uickly becoming one
of Kelowna’s premier
2017
2016
Single Family
$ 806,993
$ 775,618
4.1%
Townhouse
$ 475,164
$ 488,380
-2.7%
Condo
$ 451,173
$ 433,565
4.1%
Price per sq/ft
$ 271.02
$ 254.04
6.7%
Lakeview Heights
%Chg (yr)
locations for executive new home construction,
Lakeview Heights now has an average single family home price of $807,000. With an average square footage of 3,050, the $271/sq ft price tag is right on the market wide average. Where Lakeview Heights was once the affordable alternative, the wine trail has brought with it some warranted attention. Still, a
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
nice home in Mission Hill can be obtained for about 10% less than something you would find in The Mission, while staring directly across the lake at one another. At the present moment, this diverse
Expect finished homes on these lots to drive the average single family home price upwards in the coming months. Look for a mix of more affordable options as half duplex and townhouse inventory rise and the average buyer gets priced out of the single family home market, as is the case in most areas in the region this year.
neighborhood provides reasonable choice with an average of 4.7 months of inventory on hand, the third highest in the region. With a bit of choice, buyers are also having a bit more luck
AVERAGE SINGLE FAMILY HOME PRICE OF $807K.
H I G H E ST SA L E Y T D : $ 2 , 8 3 3 ,0 0 0.0 0
negotiating as the average list to sell ratio is 98%, almost 0.5% lower than the
Data Source: OMREB, Photo from Vantage West Realty Inc.
market average. However, homes in this area are on par with the regional market
LAKEVIEW HEIGHTS SINGLE FAMILY HOME PRICES
selling in a 63 day listing period. New wineries like Grizzli and the expan-
900K
sion of Mount Boucherie which will include a restaurant, accommodation, and tasting room, coupled with the already
600K
renowned options on the West Kelowna Wine Trail, will continue to shine a light on one of the Valley’s best kept secrets. Developers expecting to receive their fair
300K
share of Vancouver executives moving here to absorb the high prices continue to release new phases of view lots in Casa Loma and Vineyard Estates in the $300,000 plus range.
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 39
2017 B Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
oasting stunning views of the
valley, Okanagan Lake, and an
West Kelowna
2017
2016
Single Family
$ 666,471
$ 541,755
23%
Townhouse
$ 504,303
$ 460,794
9.4%
Condo
$ 249,000
---
---
Price per sq/ft
$ 249.57
$ 209.98
18.9%
%Chg (yr)
endless network of trails in Rose Valley Regional Park for hiking
and mountain bikers alike, it’s not hard to see why so many residents love this area,
and why this area ranked #1 for the highest increase in average single family home price year over year. The average 2700 square foot home in West Kelowna will cost you just over $665,000, up from $540,000 last year, a 23% spike in prices. Homes are selling 31% faster than last year and for a little closer to list price. Still a seller’s market, with 3.5 months of inventory, the area is on par with the regional average. New homes
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
You can expect to see developers looking to bring more of this product to market in the years to come, if they can find land with the appropriate zoning for multi family development.
in Rose Valley neighborhood continue to sell well with their close proximity to Mar Jok Elementary. The luxury subdivision on Diamond View has almost fully filled in now
HOMES ARE SELLING 31% FASTER THAN LAST YEAR. and brings a newer luxury option to home
H I G H E ST SA L E Y T D : $ 1 , 3 9 5 ,0 0 0.0 0 Data Source: OMREB, Sale and Photo from Tyler Bouck, Coldwell Banker Horizon
buyers seeking dramatic lakeviews and close proximity to both Kelowna and West Kelowna.
WEST KELOWNA SINGLE FAMILY HOME PRICES
With single family home prices swelling well above the average affordability, townhomes are
900K
becoming a smart, affordable option for many young families looking to be in this great school catchment. The average 2000 sq ft townhome
600K
can be purchased for just over $500,000, but there won’t be an abundance of choice, with only enough supply to sell a couple per month, the days to sell a townhome, have drastically
300K
decreased year over year – by 85%! The low supply has created one of the highest list to sale ratio for town homes at 99.8%.
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 40
W E S T K E LOW N A E S TAT E S
Annual Record Sales
Average Inventory
Months of Supply
Days to Sell
48
98.8%
$569,317
-22%
-29%
-12%
-31%
+0.25%
+15%
102
50
3.5
List/Sell Ratio
Average Sale Price
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 41
WESTBANK
Annual Record Sales
Average Inventory
Months of Supply
Days to Sell
57
98.7%
$391,784
7%
-35%
-55%
-32%
+1%
+29%
258
108
3.1
List/Sell Ratio
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 42
Average Sale Price
2017 O K A N A G A N VA N TA G E R E P O R T
W
estbank is leading the
region with a whopping
Westbank
Q1/Q2
2017
2016
%Chg (yr)
Single Family
$ 510,079
$ 428,113
19.2%
Townhouse
$ 422,663
$ 367,335
15%
Condo
$ 322,845
$ 263,809
22.2%
Price per sq/ft
$ 250.16
$ 215.33
16.2%
7% increase in sales across
all housing types, which is
the highest increase we have seen in the region. With the average overall sale price increasing a whopping 29% year over year, this statistic puts Westbank again, at #1 on the chart across all communities. Following in suit, single-family homes, both units listed and units sold, are very strong in Westbank. So, it’s no surprise
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
we’re also see big changes slated for the Westbank Centre Hub.. By 2035, The Westbank Centre Revitalization Plan aims to create a unique and thriving Urban Centre easily accessed by foot and transit. In conjunction with civic open spaces this will create a highly livable and desirable place for residents to work, shop, and live within a vibrant
WESTBANK HAS SEEN AN OVERALL 7% INCREASE IN SALES. H I G H E ST SA L E Y T D : $ 1 , 8 3 2 ,0 1 7.0 0 community space. New infrastructure
Data Source: OMREB, Photo from Vantage West Realty Inc.
projects will include the widening of roads and enhancement of the traditional main street, with two lanes going in either direction. The Main Street revital-
WESTBANK SINGLE FAMILY HOME PRICES 900K
ization is also slated to see new mixed use commercial and residential buildings go up, with the addition of a roundabout and several new parks. Don’t expect the
600K
growth to stop here!
300K
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 43
2017 S Q1/Q2
O K A N A G A N VA N TA G E R E P O R T
ingle family homes and
condos are doing well in 2017
Shannon Lake
2017
2016
%Chg (yr)
Single Family
$ 640,163
$ 564,534
13.4%
Townhouse
$ 463,097
$ 377,475
22.7%
Condo
$ 347,017
$ 284,920
21.8%
Price per sq/ft
$ 251.43
$ 221.41
13.6%
with big increases in listings, sales and the average sale
price, but it’s the townhouse market that
has stolen the show. Shannon Lake townhomes have seen well above average price growth in the first half of 2017. With the average 1750 square foot townhome selling for under $470,000, Shannon Lake still represents one of the most affordable family friendly neighbor-
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
hoods. Single family homes are selling quick and averaging $640,000 for a 2,640 sq ft a home while on average selling in only 52 days. With less than 3 months worth of inventory in this area, homes do not last! There are many new developments, both active and in the works, which include: Haven Villas in Tallus Ridge, Era Townhouses (with only a few remaining),
ONE OF THE MOST AFFORDABLE FAMILY FRIENDLY AREAS. 5 new lots on Hihannah Drive (a 5 lot
H I G H E ST SA L E Y T D : $ 9 9 0,0 0 0.0 0 Data Source: OMREB, Sale and Photo from Chris Cyca, RE/MAX Kelowna
subdivision), and Tallus Green Townhomes (presently under construction).
SHANNON LAKE & SMITH CREEK SINGLE FAMILY HOME PRICES
Several new infrastructure projects will improve life here too, including road
900K
widening, a roundabout, a new park, the $1.1 million Shannon Lake Bridge replacement, and the $125,000 Sports Court for
600K
the Shannon Lake Tennis Courts.
300K
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 44
SHANNON LAKE
Annual Record 163
66
2.7
52
Sales
Average Inventory
Months of Supply
Days to Sell
-15%
-13%
-15%
-24%
98.8% $500,304 Average Sale Price List/Sell Ratio
+0.3%
+12%
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 45
GLENROSA
Annual Record 69
18
2
36
Sales
Average Inventory
Months of Supply
Days to Sell
-23%
-42%
-40%
-40%
99.2% $490,482 Average Sale Price List/Sell Ratio
+1.1%
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 46
+20%
2017 O K A N A G A N VA N TA G E R E P O R T
G
lenrosa is an interesting neighborhood, as there is no data
Glenrosa
Q1/Q2
2017
2016
$ 502,996
$ 413,690
21.6%
Townhouse
---
---
---
Condo
---
---
---
$ 257.48
$ 186.60
38%
%Chg (yr)
for condos or townhomes at all. It’s not uncommon for oth-
Single Family
er regions to have no condos, but this is the only one that is also without townhomes. Although overall listings and sales have decreased, days to sell single family homes has fallen 40%, which is triple the average decrease in days to sell. That being said,
Price per sq/ft
Glenrosa still represents one of the most affordable areas in West Kelowna and is
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
the only area where the average price of a home is still under $500,000! With roughly 2 months worth of inventory, homes are selling very quickly and for 99.2% of asking price. The jump in average sale price is 20%, which is on par with other neighborhoods. We don’t anticipate a slow down in growth, as the area is soon to be booming with new
GLENROSA STILL REPRESENTS ONE OF THE MOST AFFORDABLE AREAS. developments, including Glen Eagles, which will house 60 new units. The Vines on Inverness, an affordable new 29 lot
H I G H E ST SA L E Y T D : $ 1 , 5 1 5 ,0 0 0.0 0 Data Source: OMREB, Sale and Photo from Nick Hazzi - PREC, Vantage West Realty Inc.
GLENROSA SINGLE FAMILY HOME PRICES 900K
lake view community. Lastly, Crystal View a new subdivision on Gates Road, where 60 lots will be nestled on a sloping hillside,
600K
with spectacular lake and valley views, and excellent sun exposure. City wide initiatives will include intersec-
300K
tion improvements done at McIver Road and Glenrosa Road, and a new roundabout at Webber Road and Glenrosa Road. 0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 47
PEACHLAND
Annual Record 87
50
3.6
58
Sales
Average Inventory
Months of Supply
Days to Sell
-13%
-22%
-51%
-0.9%
98.8% $566,809 Average Sale Price List/Sell Ratio
+0.5%
Data Source: OMREB - Real estate statistical data, Q1/Q2 2017 compared YOY to Q1/Q2 2016.
Data Source: Photo from Vantage West Realty Inc. 2017 OKANAGAN VANTAGE REPORT • 48
+8%
2017 O K A N A G A N VA N TA G E R E P O R T
P
eachland is on par with the
average months of inventory
Q1/Q2
2017
2016
%Chg (yr)
Single Family
$ 623,292
$ 571,655
9%
Townhouse
$ 467,127
$ 486,589
-4%
Condo
$ 581,250
$ 531,611
9.3%
Price per sq/ft
$ 280.68
$ 245.03
14.6%
Peachland
for the region – sitting at 3.6 months, in spite of having
a 51% decline in months of supply year over year. While the area is dominated by single family homes, it is seeing a below average increase in sale prices and has seen a very minimal change in overall days to sell year over year. This neighborhood, like many others, has a strong list to sell ratio of 98.8%. Where
Data Source: OMREB - Average sale price data, Q1/Q2 2016, Q1/Q2 2017.
the average sale price for a single family home in Peachland went up 9%, we saw sales drop by 13%. Despite slower growth, it is still worth noting that the average 2500 sq ft single family home now exceeds $620,000. Area improvements may help speed up the present slow down. Improvements will include new tennis and pickle ball courts, a recently added credit union,
THE AVERAGE HOME NOW EXCEEDS $620K.
H I G H E ST SA L E Y T D : $ 1 , 275 ,0 0 0.0 0 Data Source: OMREB, Sale and Photo from Justin O’Connor - PREC, Sotheby’s International Realty Canada
and the 125-acre master planned New Monaco Development. This new development will offer an innovative mixed use Village Centre as well as a large diversity
PEACHLAND SINGLE FAMILY HOME PRICES 900K
of mixed residential homes, which is predicted to double the present population to 9,400. 600K
300K
0 2012
2013
2014
2015
2016
2017
Data Source: OMREB – Avg annual sale price, single family residential. Jan 2012 - June 2017. 2017 OKANAGAN VANTAGE REPORT • 49
WHERE WE’RE GOING
A
t my firm, we are tracking all 17 of the market drivers and a dozen
WHERE WE ARE (OUR EDUCATED OPINION)
different market influencers, so
BOOM Market Peak
that we know exactly where we
are, at any given time in the cycle, and more
Start of Slowdown
Approaching Peak
importantly, what’s coming next. Since the market always moves through 3 phases and in the same order – boom, then slump, then
HOT
SLIDE
recovery, we are able to pinpoint almost exactly where we are in the cycle. This allows us to know where we are heading next. In tracking the financial, demographic, and
Rising Market
General Slowdown
emotional drivers the data tells us that we are still in the early-mid stage of a boom. A strong inward migration, the crazy construction market, and a healthy first time buyer market,
RISING/ VALUE MARKET
TROUGH
is indicative of the early stage boom. Anytime Start of Recovery
you say the word boom, 20% of people hear bubble. But these two words are far from syn-
Approaching Bottom of Market Bottom of Market
onymous. A boom is an amazing thing for an
OPPORTUNITY/BOTTOM
economy, while a bubble can have devastating consequences. Since fear sells in the media, and a large percentage get their opinions
Data Source: Vantage West Realty Inc.
from the media, it’s no wonder why people are quick to throw around the bubble word. So, here are a handful of bullets you can use to debate anyone that tries to tell you we are heading towards another crash:
AT THE MOMENT WHAT WE HAVE IS HEALTHY GROWTH DRIVEN BY GOOD SOLID ECONOMIC FUNDAMENTALS.
• Firstly, our market is not speculative. In fact,
• Tight lending is what will truly save us from ourselves. Anyone that’s tried to get
CMHC recently published a stat that in 2007,
a mortgage in the past will know what I’m talking about. To say the underwrit-
the height of our last boom, there were 5
ing process has become thorough would be a contender for understatement of
times as many people purchasing with the
the year. Contrast that with the end of our last boom in 2007 when we saw zero
intent to resell within a year. Speculation, is
down, 40-year amortization, and stated income lending. This basically meant that
everyone becoming a flipper or a condo high-
if you could fog a mirror you were likely approved.
rise investor with dollar signs in their eyes. So, at the moment what we have is healthy growth driven by good solid economic • During our last boom, our labor market was
fundamentals. I’m not saying the party will continue forever. As affordability gets
in trouble. We were losing all of our skilled
diminished, and developers push new inventory out in droves, supply and demand
youth to the Alberta oil boom without much
will naturally shift the other way. If you take only one thing from this article, it’s
to attract young talent to our region. Now, we
that following every boom is a slump. Once you accept that this is a forgone
are seeing a large diversity in new jobs creat-
conclusion, you can begin to be strategic and take some proactive steps to ensure
ed in the tech and film sector, along with good
that you are prepared to capitalize on the market when it does normalize and en-
paying jobs in health care and construction.
ter the slump. As I’ve written in my articles for years, “The slump is where fortunes are truly made”.
2017 OKANAGAN VANTAGE REPORT • 50
R E A LT Y I N C .
IT TAKES
FIVE EXPERTS TO
MAXIMIZE your Kelowna real estate investments
THE DR EA M T EA M OUR FOUR PROS AND YOU. PURCHASING A PROPERTY outside your area can be daunting, not having a team of professionals you trust is what holds you back from taking advantage of the opportunity that exists right now in Kelowna. This Group of Investor focused service providers is helping regular people, take that next step in securing their financial freedom. THE DIFFERENCE between a typical real estate agent or mortgage broker that likely owns little to no real estate themselves, and a professional that not only specializes in dealing with investment property but walks the walk by building their own portfolio cannot be over stated. Savvy Investors are engaging the right Realtors, Mortgage Brokers, Property Managers and Accountants with an inside knowledge of real estate investment. In a competitive market, finding and analyzing a deal can be the most challenging part. Once you’ve found it, you need to find the right mortgage product, the right structure to mitigate tax and possibly most important, a property manager that doesn’t just protect your investment but helps you actually measure your ROI and suggest ways to improve it over time.
LI NDSAY AND ERSON Licensed Property Manager lindsay@vantagewestrealty.com Phone: 250-869-6449
GREGG ALFO NSO Law Corporation alfonso@lawcorp.com Phone 250-868-6789
D ’ARCY HE NNE BE RRY Partner/Senior Mortgage Advisor darcy@mortgagepal.ca Phone: 604-992-7323
AJ HAZZI Founder, Associate Broker Gold REIN Member & Top Player 2015 Vantage West Realty Inc. info@ajhazzi.com Phone: 250-864-6433
EACH ONE OF THESE PROFESSIONALS understands what you are trying to do, and knows what you need to succeed. With this group you can save yourself loads of time and confidently snag your piece of the Okanagan Valley.
PHONE 250-717-3133 EMAIL INFO@VANTAGEWESTREALTY.COM WEB KELOWNADREAMTEAM.COM TRADEMARKS ARE OWNED OR CONTROLLED BY THE CANADIAN REAL ESTATE ASSOCIATION (CREA) AND IDENTIFY REAL ESTATE PROFESSIONALS WHO ARE MEMBERS OF CREA (REALTOR®) AND/OR THE QUALITY OF SERVICES THEY PROVIDE (MLS®).
2017 OKANAGAN VANTAGE REPORT • 51
Vantage THE
REPORT
VANTAGE WEST REALTY INC. Suite 100-1060 MANHATTAN DR, KELOWNA, BC V1Y 9X9
PHONE 250-800-2312
EMAIL VANTAGEREPORT@VANTAGEWESTREALTY.COM
WEB VANTAGEWESTREALTY.COM