Spring is here! There are changes in the weather. Our real estate market in the South Okanagan is no exception. As I get a little wiser (or at least I hope so) I realize that one thing is guaranteed to all of us - everything constantly CHANGES! Spring market typically is pretty active in the South Okanagan. So what can we expect for this year? Only time will tell but indicators from different sources and the hyperlocal understanding of the marketplace, are suggesting that we will be in a more of a balanced environment to accommodate happy Sellers and happy Buyers.
Canada’s 2023 Industry Trends Report found 34 per cent of Canadians who planned to enter the market listed rising costs and inflation as their top concern. Followed by a lack of affordable housing options in their community (25 percent) and high rents (25 percent) would impact their ability to save for and purchase a home. Successfully navigating the market during inflationary times means “forgetting the noise and looking at your own personal situation. Make a real estate decision based on how it will benefit you and your family. If it makes sense, go for it. If not, don’t follow the herd,” says Tim Hill, real estate adviser.
We have a bit of a reprieve with the Bank of Canada holding interest rates in March. Another review is slated for mid-April. Our Team is seeing lots of activity. Activity levels that we did not expect for the beginning of the year. More listings, lots of calls, and interested parties searching for their new property. What we have found is that with all the activity we are seeing there is still a slow down in “taking action.” What I mean is that we are busy but it is just taking a longer time for deals to come to fruition. I believe it’s the way it should be done. Everyone is able to do proper research of the marketplace they are shopping in and they don’t feel like making any hasty decisions.
The long term outlook for Canadian Real Estate and especially for us here in the South Okanagan is very positive. People need to have patience and a willingness to understand the current market situation. That is where your trusted Real Estate Professional comes into play. In speaking with one of our trusted Mortgage Professionals last week, things are positive. Even though interest rates have gone up, the prices of homes have dropped 11-15% locally, so the cost of a mortgage has not been overly affected as we wind down Q1 of 2023. Remember, be sure to reach out to your mortgage broker to assist you with more detailed information.
According to a survey by Maru/Blue, more than one quarter (26%) of Canadians who put their home purchase plans on hold over the last year due to rising interest rates will resume their search this spring. Penticton and the surrounding areas of the South Okanagan are still considered “Hot Spots” for those looking to buy or sell. Penticton is challenging Kelowna for the top spot in the Okanagan. It is predicted that Penticton will be the best recreational and resort residential market in B.C.’s interior for 2023. Currently Penticton and the South Okanagan have approximately seven months worth of available inventory. That is sitting in the range of what would be considered a balanced market. Inventory levels, less than four months equal a sellers market and over eight months, equals a buyers market.
A total of 831 homes changed hands across the Okanagan in February, down about half on a year-over-year basis, but up from 555 sales in January. The benchmark price of a single family home in Okanagan, traded for $669,000 in February, up from $657,000 in January. Finally, the average time to sell a home fell to 76 days in February from 86 in January, while the number of new listings increased from 1,430 to 1,579 according to fresh data from all parts of the Association of Interior Realtors, which includes north, central and south Okanagan, plus the Kootenays.
If you are looking for some answers to your real estate questions to navigate these changing times, call us at neuHouzz Real Estate Group: 778-476-8917.