Kelowna is not a 'problematic' housing market
Despite warnings the housing market will begin to slow in some Canadian cities, Kelowna's market is not expected to cool off anytime soon.
Canada Mortgage and Housing Corporation Senior Market Analyst Taylor Pardy says they've issued a "red" warning for cities like Vancouver and Toronto - where disposable income and population growth are problematic and can't support a continued rise in housing prices.
Pardy says Kelowna has seen a surge in housing demand this year which has created a 14-percent growth in home prices overall.
He says the city's population growth is expected to continue at a modest pace through 2017, which will keep the housing market moving.
"Currently we are not anticipating a cooling. We are anticiptaing some moderation in the number of MLS sales and the number of starts over the next two years, but MLS average prices are anticipated to continue to grow at a modest pace," he says.
Pardy says MLS sales are up 29% in Kelowna this year after a 10% increase in 2015. He says this year, housing prices have increased by about 14% overall.
Pardy says Kelowna's population grew by about 3.2% in 2015, the highest in Canada, and is expected to grow by 2.2% in 2017 and 1.7% in 2018.
He says Kelowna is not included in the HMA framework assessing problematic conditions in markets in Canada - they are working on including the city, but right now it's not rated.