What is a balanced market and what does that mean for home buyers and sellers. Tracey Vrecko, a Kelowna Realtor from RE/MAX Kelowna sheds some light on the shift in the Kelowna Real Estate market.
The Kelowna real estate market is not the doom and gloom the media is making it out be, in fact, the decrease in sales activity and the increase in inventory has balanced out a heated marketed that was putting stress on both buyers and sellers.
There are several factors responsible for this shift in the Kelowna Real Estate Market.
Increase in Inventory of homes for Sale in Kelowna
According the the Okanagan Mainline Real Estate Board, the number of single family homes for sale in Kelowna has risen to just over 1550 units. This is nearly double over this time last year where single family listings were sitting just under 800 units, creating a strong sellers market. This increase in inventory has cooled the heated market giving buyers more choice and sellers more competition.
Changing mortgage rules
New federal guidelines came into effect at the beginning of 2018 that has put a stress test on those who are looking for a mortgage. This is not only making it more difficult for homebuyers to qualify for a mortgage, it is also decreasing buying power by approximately 20%. This has had a significant impact on the Kelowna real estate market as homebuyers are now having to re-evaluate their needs when it comes to buying a home. For more detailed infomation on the changes visit https://globalnews.ca/news/4097215/canada-new-mortgage-rules-stress-test-2018/
When the NDP government took control of the province of BC, the prime Minister John Horgan put forward the controversial Speculation Tax to aid in BC’s housing crisis. Since it’s conception, this tax has since been revised due to the backlash of homeowners and investors, and has yet to be passed. Even the idea of this speculation tax has made the public nervous and has decreased buyers confidence in the housing market. For more information on the Speculation Tax https://www2.gov.bc.ca/assets/gov/taxes/property-taxes/publications/is-2018-001-speculation-tax.pdf
Kelowna Realtor, Tracey Vrecko comments:
“This shift in our market has created a balance that will be better for home Buyers and Sellers. For someone buying a home in Kelowna, this shift will allow them to take more time making this big decision and not feel as rushed as they did 6 months ago. And for Sellers listing their home, with the increase in inventory of homes for sale in Kelowna, this has opened up options for when their home sells.”
With all the changes to the Kelowna Real Estate market it is more important than ever to have an experienced Kelowna Realtor working on your behalf. Your real estate professional should keep you up to date on the factors affecting the market and how this will impact your home buying or selling experience.
Quincy Vrecko and Associates are a group to top real estate agents in Kelowna and service the surrounding areas. Kelowna Realtor Tracey Vrecko has been in real estate for 16 years and has vast knowledge and experience with changing markets.