Q1 UPDATE (2019)
The Verve remains a solid investment for First Time Home Buyers’ and Investors; however, the introduction of higher interest rates in the form of a “stress test” and the Speculation Tax has caused sales to drop significantly. In the first quarter of 2019, there were only 8 sales at The Verve, which is a 50% decrease from the same time period last year. With 1 bedroom, 1 bathroom units averaging $280,000 and 2 bed, 2 bathroom units averaging $340,214, prices are still holding – it is just taking a bit longer for inventory to sell.
2018 YEAR IN REVIEW
Government intervention in the form of a stress test, increased interest rates and the new Speculation Tax has caused some uncertainty in the Kelowna Real Estate Market. Demand has definitely decreased due to these government policies, which is eroding affordability and purchasing power. However it was a fantastic year for The Verve. While total unit sales were down from the previous year by 13.16%, prices steadily increased month over month. The Kelowna condominium market saw an average price increase of 4.45%, while The Verve had an average price increase of 12.24%. The most notable price increase was in the 1 Bedroom, 1 Bathroom units with an increase of 14.42%. The Verve continues to be a strong investment for Investors, as well as First Time Home Buyers who made up 17% of the market in 2018.
The Verve continued to increase in average price across all categories in 2018. The 1 Bedroom/1 Bathroom units increased in average price from $209,880 (2016) to $270,038 (2018), 2 Bedroom/2 Bathroom units increased from $267,845 (2016) to $342,310 (2018), and 3 Bedroom/2 Bathroom units increased to an average price of $410,000 (2018).