The Okanagan Real Estate Market - Nov. 27, 2008
There is a stunning estate property in Kelowna that was listed for $4,900,000 this summer. This price is now $3,029,000. That’s 38% off. I recently helped a client buy a house that was listed for 33% below what it should have been listed. We wrote on offer within 30 minutes of the house coming on the market. I stayed up until 11pm negotiating back and forth to make sure we sealed the deal before any offers came in. We turned around and assigned the property before we closed for a hefty profit. This happened last month while the experts were saying “the sky is falling and the end is near”.
I do think prices will drop for the next year or two but that is based on a 9% drop from this year. If certain houses are listed for 30% less than they should be listed for it doesn’t matter if prices continue to drop for the next two years. They are not going to drop 30%. If you can find a house anywhere from 15% or more lower than it should be then buy it. If you find a house for 30% off, yes they are out there, then don’t walk to write your contract run there as fast as you can. You will not see deals like that once the economy starts to stabilize.
You do not want to sell your house right now. If you are running into financial stress then rent out rooms in your house. Do not sell. While the market has only gone down 9%, your panicking neighbours are killing the market. Why is someone going to pay fair market value for your property when the house down the street is listed for $50,000 less? If you can wait it out even just another year or two, do it. Ideally you are going to want to wait 5 more years until we hit the next high cycle.
The last low cycle did have a peak in the middle of it. I think we are going to see that mini peak in 2010. The Olympics are going to do a lot for BC. They are really going to boost our economy. I think prices will go up in 2010 and then slump off again after that for a year or two.
I am very optimistic about the future of real estate in BC. British Columbia is stunning. Who wouldn’t want to live here? The Okanagan has one of the mildest climates. It’s the Palm Springs of the North. You get the sunny weather of Palm Springs plus the Canadian healthcare you can’t get in the real Palm Springs. The economy drives real estates. Canada is sitting in a fantastic economic position. We have tons of clean water, natural resources, oil, etc. Canada is going to become an economic powerhouse in the next 20 years. Owning real estate in Canada is a solid investment.
Okanagan Real Estate Company