Photo: Ed Burke/Castanet Readers Gallery
A new report from Remax suggests home prices may only rise about 5% in Kelowna this year.
The 2022 Small Markets Report analyzed home sales and price trends in Canada’s fastest growing small housing markets, which are defined as those with the highest population growth rates in 2021 and having a population of less than 440,000, with secondary markets of less than 100,000.
A Leger online survey of 1,525 Canadians found livability (40%) was the top factor in choosing to buy a home outside the big cities, slightly ahead of affordability (37%) .
Remax also interviewed agents and brokers in dozens of markets across the country. These results suggest that Kelowna will experience a 5% year-over-year price increase, but sales volume will slow 10% in 2022. The average price of a single-family home by the end of the year should be $1,013,447.
However, the first quarter statistics do not show that the overheated market is cooling. The average residential sale price jumped 29% and the number of sales jumped 38%.
While the West is still popular, hotspots for smaller markets in 2022 will be in Eastern Canada, according to Remax. The largest increases in unit sales are expected at Carleton Place, Ontario (+25%), Truro, Nova Scotia (+25%) and Woodstock, Ontario (+20%).
The forecast indicates that the biggest increase in unit sales in British Columbia will occur in Cranbrook (+15%), while it foresees a slowdown in Chilliwack (-17.5%).
The report notes that over the past few months, regions in Western Canada have seen greater buyer confidence and less urgency to buy a home. “This has resulted in fewer bidding wars and signals that the market is starting to calm down; however, it is too early to predict indefinitely. “
The Leger poll also found that more than a quarter of people living in larger markets (28%) would like to move to a smaller market in the next two years and a quarter (25%) of those surveyed in larger markets and smaller ones received family support to buy their first home.
The online poll was conducted between March 25 and 27 and a probability sample of the same size would yield a margin of error of +/- 2.5%, 19 times out of 20.