Kelowna posts gains in home prices to end the year

Lloyd Doyle
January 14, 2019

"The financial, tourism and education industries have helped make the regional economy resilient in the face of macroeconomic factors affecting other areas of the country", said Marc Doucet, broker of record, Royal LePage Atlantic.

According to figures released Friday from Royal LePage, the average price of a home in London rose nearly nine per cent year-over-year to over $388,000 in the fourth quarter of 2018.

The median price of a bungalow climbed slightly by 0.7 per cent over the same period to $724,225.

Analysts say retirees are competing with first-time buyers when choosing to buy a condominium, resulting in a lack of inventory.

Meyer adds that the spike in home prices was seen nationally, with figures rising by four per cent year-over-year in the fourth quarter of 2018. Retirees who are unable to find a condominium stay in their homes longer, resulting in a shortage of two-storey (homes).

Ethier noted the shortage has been exacerbated by new regulations introduced by federal and provincial governments that have slowed the real estate market.

"With a shortage of listings within these two housing types, prices in both property segments rose in 2018".

When broken out by housing type, the median price of a two-storey home increased 4.4% in that period to $328,859, a bungalow increased 3.2% to $297,059 and condominiums decreased 5.8% to $230,197.

However, central Montreal saw the largest increase in condo prices in the region: six per cent.

"Calgary's real estate market in 2018 was affected by a confluence of lacklustre oil prices, new mortgage rules, and rising interest rates", Corinne Lyall with Royal LePage Benchmark said in a news release.

Nationally, year-over-year home prices made healthy gains in many regions across Canada in the fourth quarter of 2018.

"Government regulatory intervention and rising interest rates, when combined with property price overshooting, triggered the correctional cycle we find ourselves working through today".

Montreal will maintain its leading position in the Canadian real estate market in 2019, according to St-Pierre, albeit at a slower pace than a year ago.

Other reports by Iphone Fresh

Discuss This Article