6450 Finch Road, Lake Country, BC

A summer of floods, fires and smoke is suddenly over and the blue skies are back!  Autumn brings a quiet calm as everyone falls back into work and school routines and the real estate market also seems to be on a bit of a break! Despite a slower, non-typical September, we continue to see market pressure as housing demand outpaces supply.

New Federal Government controls to rein in Canadian’s debt load could also cool housing prices. We anticipate many more changes this Fall in financing and mortgages.

Our industry colleagues advise that Lenders processing conventional financing applications will be using a new ‘Stress Test’ rules to evaluate each borrower’s ability to pay back their loan if interest rates should rise. For example, under the new tighter rules, a borrower’s ability to pay could be calculated against a five-year standard rate.  That could be several percent higher than the actual rate currently offered by the lender. These new rules will be enforced by the Office of the Superintendent of Financial Institutions. It sounds like Canada Revenue Agency is also involved. We certainly understand the importance of lowering Canadian’s rising household debt, but we also sympathize with hopeful first time home buyers who may no longer qualify to buy. It’s painful to see home affordability slipping away for some of our local families!  

Point of interest –  Did you know there is a direct correlation between what taxable income you claim on line 150 of your income tax and what is evaluated on your Mortgage application?

Out of Town Buyers

Buyers from Vancouver/Lower Mainland up to 19.7% compared to 9-10% five years ago. The majority of buyers, 56.18% to be precise, are still from the local area. However, it is interesting to see how out of town buyers from Alberta and from Vancouver/Lower Mainland have switched positions over the past several years. Did you know the marketing and advertising campaign selected for your property is based on the property type and the location of your most qualified potential buyers?

North Okanagan Real Estate Statistics (Vernon, Coldstream, Armstrong, Lumby & Enderby)

August 2017 vs. August 2016

• Overall sales up 4% to 257 units.
• Single Family home sales up 7.38% to 131 units
• New listings, up 17% 385 units.
• Active listings down 14.25% to 1,468 units
• Single Family homes listed up 9.63% to 148 units.
• Average days to sell down 19.99% to 82 days.

Shuswap Real Estate Market (Salmon Arm, Shuswap & Sicamous)

August 2017 vs. August 2016

• Overall sales down 6.4% to 161 units.
• Single Family home sales down 2.7% to 72 units
• New listings, down 2.3% to 212 units.
• Active listings down 16.96% to 1,092 units.
• Single Family homes listed up 9.33% to 82 units.
• Average days to sell down 34.14% to 98 days.

Source: Okanagan Mainline Real Estate Board Statistics:

North Okanagan: North Okanagan Monthly Statistics, August, 2017

Shuswap: Shuswap / Revelstoke Monthly Statistics, August, 2017