In south central British Columbia at a fork in the stream of the Thompson River, the city of Kamloops is quickly becoming one of the province’s hottest real estate markets, and much of the demand is coming from local Calgarians.

Last week phase one of a new 220-home community sold out, further bolstering Kamloops’ already charged real estate market. In early December, when real estate sales have historically been fairly flat, eager buyers clamored to purchase homes in Mission Hill, a multi-phased steel and concrete condominium community perched on a vantage point overlooking the city, mountains and river.

Within eight hours, 60 homes ranging from 653 to 1070 sq. ft. were completely sold out, setting a new Kamloops sales record for number of homes sold in one day. Prices for Mission Hill residences started in the mid $200,000s.

According to a recent forecast by the British Columbia Real Estate Association (BCREA), there is no end in Kamloops to double-digit price increases.

BCREA economist Cameron Muir said average home prices in the city and outlying region jumped 23% in 2007 and will increase another 14% in 2008. These price appreciations are expected to lead the province.

According to BCREA, much of the growth will be due to high demand condominium units.

“More and more people are looking at Kamloops as a great city to live in, to raise a family in or to use as a location for recreational investment property,” says Curt Woodhall, vice-president of marketing for New Future Building Group.

Lana Wright a REALTOR® with RE/MAX who serves homebuyers from Calgary and British Columbia, said much of the demand coming from Calgary looking in the Kamloops and greater B.C. market is from speculative buyers.

More and more Calgarians are looking west towards B.C. to find that perfect investment property, while a small but growing number of Calgary buyers are purchasing homes and secondary properties for themselves; often for future retirement use, she said.

Kamloops is quickly becoming B.C.’s newest hotspot for desirable real estate, said Wright, and the demand is only expected to grow quickly in the near future, when the snow melts and the secondary home market begins to sizzle.

The region has one of B.C.’s lowest unemployment rates and coupled with the relative affordability, house prices in Kamloops are getting ready to skyrocket.

“With an annual population growth of over 2%, the demand for housing in the Kamloops market will continue to grow,” says Darcy Nyrose, vice president of sales at New Future Building Group. “The response has been overwhelming, both local and recreational buyers really see the exceptional value here.”

—Dan Leahul is the Calgary Real Estate News resident reporter