First-time homebuyers taking advantage of interest rate cuts are a big reason why Kelowna’s real estate market is starting to pick up pace.
Royal LePage on Tuesday released its Home Price Update and Market Forecast report for the fourth quarter of 2024, and it found the aggregate home price in the city jumped nearly 2% over the last year. The fact the price increased 3.1% from the third quarter, however, shows the market might be ready to start humming again.
“Thanks to two sizeable rate cuts by the Bank of Canada in the fourth quarter, activity has picked up noticeably in the Kelowna housing market,” Royal LePage Kelowna owner Francis Braam said in a press release.
“On a yearly basis, transactions have risen by double digits as buyer demand has swiftly increased in recent weeks. Inventory has been climbing too, though the burst in activity we recorded between October and December is causing supply gains to stagnate and prices to trend upward.
“First-time buyers are particularly active at the moment, looking to take advantage of lower borrowing costs. With the first-time buyer cohort picking-up entry-level properties, move-up buyers have been able to upgrade into larger homes.”
Kelowna’s single-family median home price jumped 6.3% from the fourth quarter of 2023 to $1.1 million, while the condominium mark increased 2.6% during the same period to $492,000.
Royal LePage’s numbers are similar to the ones released last week by Association of Interior Realtors, which showed an uptick in sales and listings last month in the Interior, as well as price increases in the Central Okanagan.
“I do not expect that the momentum we are currently experiencing will slow down anytime soon,” Braam said. “Buyer demand will likely continue to intensify as the market naturally heats up in the spring.
“There is potential for the spring market to start earlier than normal, given the current pace of demand. Should the winter weather stay mild and interest rates continue to slide downward, this will likely be the case.”
