The real estate market, like other markets, operates in cycles. We havea great cycle in the Okanagan from 1989-1994 featuring double digit increases in value. Unit sales were very similar to our recent market. The average house price moved $70,000 in 4 years from $100,000 to $174,000. Many people which they had bought real estate in the Okanagan during this boom cycle.
The next 6 years showed a correction cycle where demand declined. Those years recorded drops in value raning from 0.84% to 2.5%. All in all, the end of this period saw growth in prices. People's investments were basically safe. Many people wish they had bought a home during this cycle.
In mid 2001 the market started to change as investors entered the market again. By 2002, the market had recorded a significant upturn and the est of the years following experienced double digit increases.
In 2008 we are experiencing a decrese in unit sales. We will likely finish the year at about 2100 single family sales or the same level as 2001. The average house price is not likely to come down much (so far it's up 6.9% from last year at this time). People will also which they had purchased a house during this new cycle. The BEST time to buy is the start of a new cycle which is exactly where we are right now in 2008. I personally purchased 2 houses this summer. I honestly can't believe people are ignorant enough to wait and not buy now. If you have the money you should 100% be going for it right now. You are going to look back in 6 years are regret not buying now.
Over the last 5 years the average house price has gone from $240,000 to $476,500 which is double. Over the last ten years it has gone from $176,000 to $476,500 and over the last 20 years it has gone from $100,000 to $500,000!