Okanagan’s housing growth is fueled by housing shortages – Kelowna Capital Information

Supply and demand.

It’s a simple economic concept that aptly describes the southern inland housing boom that is currently particularly pronounced in Kelowna, says the Chief Executive Officer of Mission Group.

Jonathan Friesen believes a combination of factors contributed to the current overheated real estate market, where houses listed in the market make multiple bids illegal in hours rather than days, and a bid of $ 30,000 above the asking price is often a starting point for buyer competition is

Friesen says the typical real estate sales market cycles we traditionally see in the Okanagan have gone since the pandemic rebounded last fall.

“For us, a stable market would typically generate around 20 percent of sales compared to available inventory in a given month. In April we achieved 90 percent, ”said Friesen.

He believes this addresses several issues: Kelowna is becoming an attractive option for home and leisure buyers; the ability to work from home, newly discovered during the pandemic; Pandemic inspired shopper mentality of buying now instead of waiting, which could be an increasing post-pandemic attitude; better job opportunities in a community with low unemployment; Big city dwellers in a city the size of Vancouver or Toronto who are fed up with the denser lifestyle.

“Our lifestyle here is hard to beat. We have all the services of an urban center, but we have the outdoor lifestyle experience to offer and we don’t have to fight the traffic or have long commute times to get somewhere, ”said Friesen.

But in all of this it still comes back to the basic characteristic of supply and demand.

Friesen says that while that demand traditionally came from Alberta and more recently at a higher level from the lower mainland as Alberta’s economy experienced a downturn, that pull is now spreading across Canada.

For Mission Group, the company’s focus is not on single-family homes, but on higher-density residential projects, and potential buyers they chat with at the sales level repeat that message.

The Mission Group is currently working on the completion of the Bernard Block multi-tower residential project while advancing the development of 550 Doyle Avenue. Project in partnership with UBC Okanagan and the long awaited Aqua Tower development on the water in the mission.

Friesen says they see ample opportunity for further growth in Kelowna, with a changing philosophy in the boroughs with a shift to higher density housing developments in traditional single-family neighborhoods.

“People want to live in homes where amenities are right next to each other, the need to drive everywhere, awareness of the need to reduce greenhouse gases, and reduce a better lifestyle,” Friesen said.

Friesen admits that the boom times for sellers have greater financial hurdles to overcome for tenants and first-time buyers who are struggling to make a down payment.

He says the Mission Group’s projects in some ways enable affordable housing to be provided to those who qualify.

“We’re not making a big impact with it, but we’re trying to do our part,” he noted.

“We see in the short term that the market will normalize to some extent, these traditional market cycles will return, but overall we see Kelowna as an exceptionally healthy market for the next few years.”

READ MORE: Okanagan’s housing boom continues to escalate

READ MORE: Okanagan-Shuswap property Market still hot start to 2021

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City of Kelowna Real Estate

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