Where Kelowna’s Housing Market is Going

The housing market in Kelowna is no different than anywhere in Canada where prices have enjoyed sustained increases over the last ten years. A question I am often asked is when will the bubble burst?

The truth is that a bubble bursts when there is a major economic shift, and we are having no major shifts such as the oil crash in 2015, or the recession of 2008–2009 caused by the sub-prime collapse. Sure, sales are down. The economy seems fairly stable, if a little uncertain, right now due to the new Provincial taxes and Federal regulations. We are adjusting to these external changes and hopefully the intended impact by both the Federal and the Provincial governments will be achieved, i.e. making houses more affordable.

However, combating these external changes is the fact that Kelowna is a desirable place to live, and people move here simply for the quality of life. Europeans for example love the standard of living — loonie for euro/pound, why wouldn’t you? Canadians from other provinces appreciate the weather and all the easily accessible lifestyle options close by, whether it is hiking, biking, skiing or all the opportunities within easy commuting distance for their children to enjoy. For example, last weekend at Big White there were families enjoying the bike riding trails with much more to come. It should be noted that Big White is not subject to the Foreign or Speculation tax!Some people are even predicting an increase in prices in the second half of the year.

FEAR IS A GREAT MARKET PREDICTOR AND OFTEN CAUSES DEALS TO BE MADE.

It is during times of uncertainty when you pick up the best deals. I do not see a sign of the market softening. I see a sign that sellers are a bit worried right now and a little bit more motivated. Some clients of mine have pointed out that there are less bidding wars for properties as compared to this time last year and, as a result, they are taking a “wait and see” approach. In certain high priced areas such as Highpointe, Buyers certainly scored, picking up properties listed well below appraised and tax value.

UNCERTAINTY LEADS TO BETTER DEALS

Anxiety on the seller’s end gives people who are willing to take less in order to secure a sale the opportunity to sell to buyers looking to pick up properties for less money. Similar to 2016, as time goes by and people start to see that the market is not rising, but instead staying steady, it will be harder for buyers to pick up deals. Once sellers become comfortable that the market is not in a downward swing, they will be less inclined to sell for lower prices.

The Way forward….

As people start to realize that the markets are still strong, and they realize there’s no indication of a huge decrease in prices, these deals will start to disappear. Perhaps now is the time to strike! There are a lot of opportunities, especially for properties that have been on the market for a while. For seller’s, pricing your home right at this time is key with an impending increasing interest rate environment and all the Provincial and Government regulations, time will tell.

http://www.kelownaartandhome.com/b/blog/where-kelownas-housing-market-is-going.html

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