Market staying strong

Penticton’s “blue-chip” real estate market kicked off 2017 with a 33 per cent year-over-year increase in transaction values — all the more impressive considering 2016 was a recordsetter. “I was in three (deals) last week where we were competing against someone else and they all went over list price,” said local realtor Pamela Hanson, who’s also the president of the South Okanagan Real Estate Board.

“And I’m seeing here in our organization at RE/MAX that a lot of other people are just as busy, so the buyers are there.”

Fresh data from SOREB shows a total of 58 properties worth $24.1 million changed hands in Penticton in January, up from 57 properties at a total of $18.2 million in the same year-ago period.

That’s largely a reflection of the average selling price of a single-family home reaching $540,000 in January versus $417,000 a year ago.

Hanson said a shortage of supply is driving up those figures, while an abundance of new multifamily units means prices in that segment are more stable.

She attributed the heightened demand generally to the strong B.C. economy.

“I’m very optimistic that it’s going to be another good year,” said Hanson.

Being named a “blue-chip pick” by Canadian Real Estate Wealth Magazine may help fuel demand in Penticton, too.

A feature in the latest edition of the magazine noted the pleasant climate, $312.5-million expansion of the Penticton Regional Hospital, availability of new housing stock and “microscopic” vacancy rate as factors “that should bring the city into clearer focus for investors surveying the B.C. market for new opportunities.”

Meanwhile, the city is continuing to enjoy a surging construction sector, which also set a record in 2016.

City staff in January issued 97 permits — 33 of which were for new housing units — on work valued at $11.1 million. That’s compared to 57 permits — just eight of which were for new homes – worth $2.5 million in the same year-ago period.

The spike is due in part to staff dealing with a backlog from last year, according to Ken Kunka, the city’s building and permitting manger.

Nonetheless, he’s expecting the department to stay busy through the spring, based on the high number of development applications already in the works.

I’m very optimistic that it’s going to be another good year. Realtor Pamela Hanson