In 2022, the Kelowna housing market is predicted to persist in seller's market due to a limited supply of homes. In particular, there is a chance that the market may witness a flurry of buyers rushing to buy in the new year because of the advantage of the lower rates. Low interest rates could also have an impact on buyers in 2022. As long as the supply is constrained, prices may continue to rise.
Demand and price increases are projected to continue until 2022 as a result of buyers moving to the central Okanagan. Lower Mission, South Pandosy, and Wilden are three of Kelowna's most coveted communities. More seniors are projected to turn to Kelowna as a result of its high quality of life and relative affordability as the Canadian economy continues to grow.
The largest annual price growth in the area has been seen in single-detached homes, which went from $858,741 in 2020 to $1,050,667 in 2021 (+22.3%). Townhomes followed, going from $545,227 to $648,127 in 2021 (+18.8%), and apartment flats from $367,362 to $439,823 in 2021 (+18.3%).
In 2022, purchasers are anticipated to place a higher priority on a variety of housing facilities, such as swimming pools, family rooms, home offices, and yards.
The scarcity of building lots is a barrier to the development of new single-family houses. The median price range to enter the Kelowna market for first-time homebuyers is $600,000 to $800,000, and it's expected to stay that way through 2022.
In 2022, it is expected that Kelowna's housing market's average home sale prices would rise by 9%.
Outlook for the Canadian Housing Market in 2022
Based on surveys of brokers and agents, which are reflected in the 2022 Canadian Housing Market Outlook Report, we anticipate steady price growth across the Canadian real estate market in 2022, with inter-provincial migration continuing to be a key driver of housing activity in many regions. Prices will undoubtedly continue to rise due to the continuous dearth of home supply. In light of these elements, our Canada projects an increase in average home sales prices of 9.2% across the nation.
Many Canadians remain confident in the real estate market despite the global pandemic. In 2022, 49% of respondents in a Leger survey for Canada believe Canadian real estate will still be one of their top investment choices (59 per cent of homeowners vs. 34 per cent non-homeowners which included renters, those not looking buy, and those currently looking to purchase). In addition, 49% of respondents feel optimistic about the Canadian real estate market's stability in 2013.