Okanagan Real Estate Market – October 2015Published: October 29, 2015
Fall 2015 – A Disappointing Real Estate Market
We are well into the fall market. Kelowna is having a record year. While we are still busy to the north in Vernon, the actual sales activity in the Okanagan-Shuswap is best described as ‘disappointing’.
You might not know it from the news reports, but the North Okanagan is sharing this sentiment with many regions in Western Canada. While in areas like Vancouver sales are steady, many Realtors outside these booming ares report sales are slowing down. The loss of jobs in the oil and gas industry has resulted in a loss of buyers for many areas and unlike Vancouver, that gap is not filled with buyers from buyers or investors from other areas.
Here’s the local stats.
The Okanagan Mainline Real Estate Board’s 3rd quarter report for 2015 shows that in our “North Zone” total residential sales were down 7.2 percent this past month to 155 units compared to 167 in 2014, and dipped 4.8 percent year-to-date (to 1,359 from 1,427). Sales are from local buyers, approximately 58 percent, and only 15 percent from Alberta and a slim 10 percent from the Lower Mainland/Vancouver Island.
It’s a situation I discussed length with financial and industry experts and top producing Realtors when I attended the RE/MAX of Western Canada Conference last month. But, after all that conversation, I’m feeling good and happy to tell you why.
It’s not all doom and gloom.
There is some good news! Despite lower sales volume, the fall market remains brisk, consumer demand is high, and interest rates are low. One of our key mortgage brokers offered us this financial tip,
“If you have a Home Equity Line of Credit, this could be a great time to consider a Fixed Rate Mortgage to save on interest costs. Lines of Credit are typically offered at prime plus a half percentage, so they have become more expensive than today’s low rate mortgages.” – Dawn Stephanishin, INVIS.
Reports suggest BC is the ‘economic growth leader’ among the provinces, that consumer confidence is high and that mortgage rates will remain at these historical lows. We could be heading into a strong start to the 2015/2016 winter market.
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About Priscilla & Company
Priscilla was one of six Canadians to receive a RE/MAX, Luminary of Distinction award in 2014. She has surpassed every level of achievement held high by RE/MAX. Priscilla & Company incorporated in 1991 and are among the top RE/MAX sales teams in Canada.