A report released this month says Kamloops is within the top 10 B.C. cities for real estate investment.
The Real Estate Investment Network (REIN) placed Kamloops at No. 5 on a list of B.C. cities whose real estate markets are poised to outperform over the coming five-year period. Kamloops came in ahead of Kelowna and Vancouver, with Surrey taking the No. 1 spot.
REIN’s report details where each market is in the real estate cycle and what to expect as the cycle continues.
Ranked in order of potential for housing market strength, the top 10 include:
REIN is an independent research and analysis firm that has produced reports on Canadian housing markets for 25 years. To produce this report, REIN studies 36 economic and market factors. It also includes information on whether now is a good time to sell, given a city’s position in the cycle.
The report said, although the average residential price in Kamloops hit a record high this summer, the values are still well below the B.C. average and thus Kamloops has maintained its reputation of housing affordability. (The average price for a house in Kamloops was at $349,845 in October and REIN says the average home price in the province is $606,787).
“Consistent with a market on the rise, home values are increasing more than the rate of inflation, negatively affecting affordability,” REIN says.
Real estate sales have seen a “consistent increase” over the 10-year average and inventory is decreasing.
“These statistics align with a market on the rise — reduced listings with an increase in sales. We can expect the number of days on market to also decrease,” REIN’s report says.
Kamloops’ low vacancy rate, at 1.3%, is also consistent with a rising real estate market, REIN says, and current rental rates indicate “excellent” returns-on-investment.
“When we consider the strong economic fundamentals, the city leadership planning for growth, and the real estate market getting warmer still, there is opportunity for long-term, slow, steady growth.”
