Housing market trending upward in 2011 - Kelowna News - Castanet.net
by Castanet Staff - Story: 58249
Nov 15, 2010 / 5:30 pm
Kelowna area housing starts and sales of existing homes are forecast to move higher in 2011, according to Canada Mortgage and Housing Corporation’s (CMHC) Fall 2010 Kelowna Housing Market Outlook Report.
“Demand for both new and existing housing is expected to pick up as the provincial and regional economies record stronger employment growth,” says CMHC Market Analyst Paul Fabri.
Favourable interest rates will also support growth in demand. Buyers of existing homes will benefit from an ample supply of listings and strong price competition among sellers."
Fabri says gains in both new home construction and existing home sales will be modest.
Housing starts, led by the detached home sector, will increase next year.
“This year’s uptick in detached home construction will carry over into 2011.”
Lower lot prices and construction costs have allowed builders to compete more effectively with the existing home market and attract more buyers during the past year.
Kelowna’s multifamily sector will record more condominium and attached home construction and fewer rental apartment starts in 2011.
Existing home prices are forecast to edge up in 2011. Ample supply in combination with modest growth in demand will limit upward pressure on prices.
Kelowna’s existing home market will move to a balanced from a buyer’s market position in 2011 as demand improves and the supply of listings slowly comes down.