APRIL 2008

Kelowna housing starts, led by the multi-family sector surged ahead in the first quarter pushing housing starts to the highest level since 2005.  Builders are responding to sharply increased demand for higher density housing.  With few detached units available for less than $400,000, more first-time buyers are turning to townhouses and
condominiums.  Retirees and buyers seeking resort oriented housing and second residences are also key sources of condominium demand.  The latter buyer group is the fastest growing segment of Kelowna’s condominium market.  Starts of detached housing recorded a smaller increase since last year.

       “CANADA’S HOUSING MARKET REMAINS STABLE MODERATE PRICE INCREASES IN FIRST QUARTER”
(for the complete Royal LePage Survey of Canadian House Prices for 2008 first quarter —please contact me for an electronic copy)

As we head into the busy spring season, listing inventory is pouring onto the marketplace, driven by an increase in condo listings of 48% over this time last year—indications that the condo market is becoming more balanced.  The gap is beginning to widen as overall sales show a drop of 16%  most notably in the single family residential sector where sales are down close to 20% and inventory up nearly 16% year to date compared to 2007.  The condo market is showing nearly nine months of inventory on the market at this time based on the current consumption rate and single family homes are selling in approximately 63 days according to this quarter’s statistics.  The townhouse market tightened up a bit in March, showing an increase in inventory of a more modest 12%, but this catches up to the number of listings that came onto the market earlier last year and is now showing an inventory increase of 55% over Jan.—Mar. 2007.  Sales in the townhouse market dipped by 48% in March 2008.