2024 Kelowna Luxury Real Estate Market Year in Review - Part 2
On December 15, 2024, Canada introduced important changes to mortgage rules to make housing more affordable and accessible. Here’s what changed:
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Higher Insured Mortgage Limit: The maximum property value eligible for insured mortgages increased from $1 million to $1.5 million. This change allows buyers in higher-priced markets to qualify for mortgage insurance with a smaller down payment.
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Longer Amortization Periods: First-time homebuyers and those purchasing new builds can now access 30-year amortizations for insured mortgages, as long as their loan-to-value ratio is 80% or higher. This change lowers monthly payments, making homeownership more affordable.
Although 40% of Kelowna homeowners don’t have a mortgage, these changes are likely to help those who haven’t built up enough equity in their home or haven’t been able to save a 20% down payment. It’s worth keeping an eye on how this impacts the market in 2025. For sellers, this could be great news, especially if your property fits the new eligibility criteria.
2024 Kelowna Real Estate Market Over One Million Dollars Snapshot
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There were 880 sales over $1,000,000 in 2024, making up 24% of total sales.
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For properties priced between $1 million and $1.5 million, there were 645 sales, representing 17% of the market. This suggests many buyers could take advantage of the new rules.
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Interested in what sold in this price range? Click here to explore these sales.
Current Inventory in the $1M-$1.5M Range
Homes in this price range account for 22% of the current inventory. However, sales in this segment didn’t match inventory levels in 2024, with higher-priced homes generally taking longer to sell.
Curious about what’s available? Check out active listings here.
The "Filter-Up" Effect on Pricing
With easier access to mortgages, more buyers may enter the $1M-$1.5M range, potentially driving prices higher in this segment. As homes in this range sell, it could also create more move-up buyers for properties priced over $1.5 million, helping to reduce the 521 active listings in the luxury market.
Looking for homes priced above $1.5 million? View them here.
Kelowna Luxury Real Estate Market Recap
The higher-end market stayed active in 2024, with 239 sales over $1.5 million, making up 6.5% of total sales. This segment accounts for 45% of the current inventory, showing that while luxury properties take longer to sell, there’s still demand.
Interested in what sold in the luxury market last year? Click here to explore these properties.
For the real estate market, these price ranges likely aren’t as susceptible to the higher interest rates as most, because buyers in these brackets often have larger down payments, access to additional resources, or are less reliant on financing compared to those in lower price ranges. However, the new changes could spur a "filter-up" effect across price ranges, which will be an important trend to watch as we move into 2025.
Let’s Plan Together
If buying, selling, or both is part of your 2025 goals, let’s work together to create a personalized plan tailored to your needs. Click below to schedule a no-obligation consultation or to request a free home evaluation.
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These changes and trends highlight a dynamic market heading into 2025. Whether you're considering buying, selling, or both, it's a great time to start planning.
Let us know if you’d like personalized insights or have questions about your next steps!
Warm regards,
Mark & Maddie Coons
📞 778-744-0872
📧 [email protected]
