Kelowna vs. Calgary vs. Vancouver real estate

It’s a story of three cities.

As home prices in Kelowna and Vancouver penetrate the stratosphere, Calgary’s addendum is in.

“Kelowna prices outperformed Calgary years ago (when Alberta’s oil and gas boom ended), and at the same time Kelowna prices began to rise as the money poured in from Vancouver,” said Rick Hamer-Jackson, Real Estate Agent at ReMax Kelowna. who sells real estate with his brother, Brad, as part of the Hamer-Jackson team.

“Buyers from Vancouver or Calgary used to come to Kelowna and make a deal. Now Calgary buyers have to spend more money to move here.”

</who>ReMax Kelowna real estate agent Rick Hamer-Jackson, who sells real estate with his brother Brad as part of the Hamer-Jackson team, says prices in Kelowna are falling due to the inflow of money from Vancouver and teleworkers seeking the Okanagan lifestyle skyrocketing = “img-responsive”  data-src=”https://www.kelownanow.com/files/files/images/Rick%20Hamer-Jackson(1).jpg” style = “margin: 5px;” /></p>
<p>That conversation was sparked when the year-end price tables for the three cities were released this month.</p>
<p>The benchmark selling price of a typical single-family home in Kelowna hit a record high of $ 1.004 million in late 2021, an increase of a staggering 32% over last year.</p>
<p>The same in Vancouver was $ 1.9 million, an increase of a whopping 22%.</p>
<p>In Calgary it was $ 547,300, up 12%.</p>
<p>Now 12% is healthy growth, but it pales in comparison to the shocks in Kelowna and Vancouver.</p>
<p>The trend extends to year-end benchmark prices for townhouses and condos as well.</p>
<p>A typical Kelowna townhouse is $ 687,600 (up 26%), Vancouver is $ 1.004 million (+ 22%), and Calgary is $ 300,100 (up 7.4%).</p>
<p>For a typical condominium, Kelowna is worth $ 511,700 (up 2.8%), Vancouver is worth $ 762,000 (up 13%), and Calgary is worth $ 252,000 (up 3%).</p>
<p><img alt=This five bedroom, four bathroom home with a view in Black Mountain set a new price record for single family homes when it sold for $ 2.1 million this week. “Class =” img-responsive “src =” https: / / www. kelownanow.com/files/files/images/Black%20Mountain%20house.JPG “style =” margin: 5px; “/>

Gone are the days when metropolises automatically have higher property prices than smaller cities.

As such, Kelowna’s prices exceed those of the much larger cities of Calgary, Edmonton, Ottawa, and Montreal.

“Kelowna’s rise is really twofold,” said Hamer-Jackson.

“With the average price in Vancouver close to $ 2 million, Vancouverists think Kelowna’s $ 1 million is incredibly affordable. In fact, you can sell a Vancouver condo and turn around and buy a beautiful Kelowna home for the same price. “

The second part of the equation is the pandemic and the work from home ethos that started it.

“Lifestyle areas like Kelowna with its fine weather, lakes, golf courses and wine have exploded,” said Hamer-Jackson.

“Vancouver folks with high equity equity and a taste of the Kelowna lifestyle can move here, save money and work remotely.”

Of course, Calgarians can also move here for the lifestyle, and in droves, but they have to pay a premium for that.

</who>This 1,731-square-foot, three-bedroom, three-bathroom home in Vancouver’s Marpole neighborhood is for sale for $ 1.9 million, the reference price for a typical single-family home in Vancouver. “Class =” img-responsive “src =” https : //www.kelownanow.com/files/files/images/Vancouver%20house%20 (% 241_9M) .JPG “style =” margin: 5px; “/></p>
<p>As an example of how prices have gone “crazy” in Kelowna, Hamer-Jackson is introducing a five-bedroom, four-bathroom, three-car garage, pool, and spectacular view into the house he is currently in Black Mountain for 2, Has sold $ 1 million.</p>
<p>The previous record high for a single family home sold in Black Mountain was $ 1.7 million.</p>
<p>Hamer-Jackson said the exact same house, built by the same contractor but in the Upper Mission, sold for $ 1.4 million 18 months ago.</p>
<p>Today the same house in Upper Mission would cost $ 2.7 million.</p>
<p><img alt=This is the living room of a penthouse condominium on sale for $ 798,000 in downtown Calgary. A similar apartment in Kelowna would cost $ 1.4 to 1.6 million. “Class =” img-responsive “src =” https://www.kelownanow.com/files/files/images/Calgary%20penthouse. JPG “style =” border: 5px; “/>

Foreign buyers who will only be living here part-time don’t play a role in Kelowna, according to Hamer-Jackson.

“Generally it’s Vancouver people with money who want the Okanagan lifestyle and live in the house they buy here,” he said.

Of course, Kelowna also has many “promotion purchases” where people who already live here and own their own homes use the high levels of equity that has accumulated in their home to buy a bigger, better place.

The flip side of that coin is the astronomical prices in Kelowna, which have virtually driven potential young buyers, first-time buyers, and lower-income buyers out of the market.

As another example of how Kelowna overtook Calgary, consider the case of a penthouse condominium for sale and an auctioned villa.

A two-bedroom, two-level penthouse on the 21st and 22nd floors of a tower in downtown Calgary is for sale for $ 798,000.

Hamer-Jackson estimates a similar penthouse in Kelowna would cost $ 1.4 million to $ 1.6 million.

A 17,500-square-foot property outside of Calgary became the largest sale in Alberta in 2021 when it auctioned for $ 5.88 million.

A similarly sized mansion in the Okanagan would cost at least twice as much, speculates Hamer-Jackson.

</who>This 17,500-square-foot property outside of Calgary sold for $ 5.88 million last year, making it Alberta’s largest single-family home sale of the year.  A similar villa in the Okanagan would cost twice the price. “Class =” img-responsive “src =” https://www.kelownanow.com/files/files/images/Springbank%20estate.jpg “style =” margin: 5px ; “/></p>
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