Kelowna BC, Canada – Real Estate – Information and Listings
While market conditions continue to be balanced and supported by the economic fundamentals of strong employment and immigration, and historically low interest rates, economists predict it may be 2010 before we once again experience the robust conditions of past. With the Okanagan no longer being the booming market it once was, buyers may soon have the upper hand. It’s been more of a seller’s market over the past few years but people looking to buy a home are beginning to find more options on the market, resulting in a balanced market. Experts remind us that real estate, like the economy is cyclical in nature and the market will eventually balance out again. A balanced market is typically a 6 month supply of inventory. The easing Canadian market differs from the U.S. Prices to the south of us were driven up by speculative investment and relaxed lending standards. Canadian resale housing prices, especially in B.C. and Alberta, climbed due to strong job growth and low interest rates. Downward pressure on home prices is expected to ease by the second quarter of 2009, as an increase in affordability and consumer confidence induces a modest growth in sales.
Two major events have happened in October, but it’s uncertain how that has impacted MLS sales in the market. Mortgage changes took effect Oct. 15, which include the requirement for buyers to put down at least five per cent for a down payment. The federal government also implemented a reduction of government-backed mortgages from maximum amortization periods of 40 years to 35 years. Another factor in the current MLS sales is the “tremendous erosion” in equity values on the stock market. So people who were saving for a down payment will likely have to wait for those equities to rebound.
For additional information on the Okanagan Real Estate Market, please visit http://www.chriswhitney.ca/
