For those that remember, 2022’s real estate market saw some of the most unprecedented sale prices. The cost of housing in the early part of last year left many buyers in the lurch. However, things are looking up in terms of listing prices in 2023. In the Okanagan, housing prices have been steadily on the decline since January 1, 2023. Despite this, other factors like interest rates are continuing to rise. In this article, I will be going over a brief market update and providing some insight into buying and selling homes in West Kelowna in the next few months.
Follow along below to learn more.
Should I Buy or Sell Homes in West Kelowna?
In January, homes in the Okanagan saw a reduction in price compared to the same time last year. According to the Association of Interior REALTORS®, the price of a single-family home dropped 7.9 percent across Central Okanagan. Moreover, the interior has also seen a significant price drop. The cost of a home has plummeted 48.6 percent since January 2022 in this region.
Despite home prices on the decline, interest rates are still on the rise. With the Bank of Canada’s prime rate sitting at 4.50%, citizens all over Canada are being squeezed out of the market. This is especially true for those with variable-rate mortgages. Moreover, high-interest rates are making it nearly impossible for first-time home buyers to meet the requirements to qualify for a mortgage.
Buyers and sellers should also be wary of the new three-day recession period that took effect on January 3, 2023. This period allows buyers three days to back out of a deal if they cannot find funding, someone to inspect the home, or if they get cold feet.
For more information about buying homes in West Kelowna, contact me today! I’d be happy to help you find the right home in this desirable city. Be sure to check out my blog next month for more real estate tips and information. I look forward to working with you all in the near future!