Welcome to my Quail Ridge / University District Real Estate Market Report for 2017.
This report is designed to give current Owners, Buyers, Sellers, and Investors an insight into how the University District Real Estate Market has performed, here in Kelowna, in the last 12 months, and what you may expect in the coming year.
Quail Ridge / University District Real Estate Sales Numbers 2017
|Single Family Homes||
Overall sales numbers were similar to last year, but there was a significant difference in what types of properties sold.
Single Family Homes
There was a 62% fall in Single Family Homes sales numbers, in Quail Ridge, in 2017.
Looking at the levels of inventory on the graphic above, inventory numbers were far better than 2016, so it was not a lack of inventory. It appears to have been more to do with the price of homes and their age.
For instance, in 2017, only one house sold for under $600,000, whereas in 2016, 15 homes sold under $600,000. Also, there were no newer homes in Capistrano Peaks area which came up for sale, whereas there were 5 sales in 2016 between $650,000 & $830,000.
With the lack of mid to higher range homes available, this affected the overall rise in median sale price for the area. For instance, in 2016 there were 4 homes sold between $900,000 & $1.1 m and in 2017 only 1 house sold for just over $1m.
Median Home Prices
2015 - $562,000
2016 - $624,750 up 11.2%
2017 - $694,600 up 11.1%
Condo sales numbers were up 25.9%. There was a good level of condo sales activity all year. The Market was busy, with the usual Parents looking for Students attending UBCO, but we also saw a higher number of investors, particularly from the Lower Mainland. This meant that inventory was constantly struggling to keep up with demand.
Whereas we would normally see sales numbers and price increases tend to 'fall off' by the end of October, prices appear to have kept rising.
Inventory and Days on the Market
Inventory was lower in 2017, compared to 2016, and significantly lower than 2015.
The knock on effect has been a significant fall in the number of days on the market, in the last couple of years.
2015 - 90 days to sell.
2016 - 32 days.
2017 - 23 days.
Clearly and improving Sellers Market.
Median Sale Prices Quail Ridge
2015 - $265,250
2016 - 303,000 Up 14.2%
2017 - $330,250 Up 9%
Median Sale Prices Academy Way
2015 - $297,500
2016 - $335,000 up 12.6%
2017 - $389,900 up 16.4%
Quail Ridge Condo price gains were not so strong in 2017, but prices were rising faster towards the end of the year.
For instance, a 2 bedroom 900-1000 square foot unit was showing an average price of $284,000 in 2016 and $319,500 in 2017, i.e. 12.5% increase, but the last sale in December 2017 was for $335,000, which is an effective increase of 18% on similar units in 2016.
The Academy Hill area made stronger gains, but this was affected by some of the brand new units in U Two and U Three being listed on the MLS® system, which tended to be the higher priced units.
University District Townhome numbers were affected strongly by sales of the new Deerhurst Estates Townhomes in Vint Road. There were 13 of these units sold on the MLS® during the last year, in the $540,000 to $569,000 range.
One of the biggest success stories for Sellers has been the improvement in the price of Bella Sera Townhomes.
For many years, they have been underpriced, as the had a very complicated Title structure, which meant Buyers requiring mortgages could not get financing. This has now changed, and as a result of the increasing demand, we have seen prices surge from $363,000 at the beginning of the year to the latest sale being $447,500, an increase of 23.3%.
There were 4 Town Homes in Fiore Del Sol on Country Club Drive, all sold quickly, with us receiving an offer on one within 24 hours, and the longest sale took 37 days.
As there were 3 three storey units and 1 Rancher the prices ranged from $543,500 to $615,500, whereas the best price for a 3 Storey unit had been $500,000 the previous year. As each one was a different size and different level of finishing, it is difficult to give a true percentage rise, but prices have risen at least 10%.
Forecast for Quail Ridge and UBCO 2018
If we continue to see inventory as low as it was during 2017, we will continue to see prices rising, however not at the same levels as we have seen over the past 2 years.
Good economic numbers for Kelowna are continuing to drive inward migration, particularly from the Lower Mainland, but rising prices are making some properties less attractive to Investors.
The Quail Ridge area is continuing to become attractive to Buyers again, as it is more affordable than some areas of the City, and is now serviced by a variety of Shops, Restaurants and Coffee shops, which were previously lacking. It is within walking distance of UBCO and still has the draw of being situated next to the two Quail Ridge Championship Golf Courses.
The University continues to expand, with 98 countries being represented at the First Year intake this year.
The U Six Condo complex, on Academy Way, is scheduled to launch during February 2018, but it will be a much smaller project than some of the other 'U' Condo buildings.
University Village, just off Academy Way, will see its first new homes built this year, which will bring welcome 'new' product to the area, and the completion of John Hindle Way will be great news for the Quail Ridge area offering easier access to North Glenmore.
If you have any specific questions about the area or your own particular needs, please do not hesitate to telephone or email me.
Tel 250 864 1707