Kelowna Real Estate Market Update

Kelowna Real Estate Housing Boom by 2015?

Overall Housing Market Showing Signs of Recovery…

• The housing market has been showing several signs of recovery, including home prices and home sales on the rise, new construction up, foreclosures falling, and mortgage rates near record lows.

• Some economists are getting very bullish about the housing recovery and even predicting that the market will return to its “boom” level days in just three years.

• Will Kelowna real estate follow suit?

Recent Barclays Capital Report Predicts Prices Could Return to Peak by 2015

• Barclays predicting house prices to increase by 5% - 7.5% per year

Stephen Kim an Analyst with Barclays says…

• "In our view, the housing market had undergone a dramatic over-correction during the prior five years, resulting in pent-up demand for housing purchases that would spark a rapid rise in housing

starts,"

New Home Construction Expected to Rise 20% or More..

• Home construction is also expected to soar, rising 20 percent or more a year for the next year, according to some economists’ forecasts. The new-home market could return to its pre-bubble average of about 1.5 million new homes a year by 2016, CNNMoney reports. That would double the construction level

expected this year.

Roger Altman of Evercore Partners says…

• "That turn in the [housing] market is occurring now and it should become a boom by 2015,”

• What will the Kelowna Housing Market do? Will it follow suit?

• Time will tell…