How Brexit is going to affect Okanagan Real Estate:
The news that the U.K. has voted to exit the European Economic Union and the resignation of David Cameron has created uncertainty. Anytime there is uncertainly people are cautious. Due to the uncertainty we are seeing a negative effect worldwide on stock markets and a negative effect on currency values in the U.K. and Canada (we are pulled down by assoication).
Overall Briexit is going to have a POSITIVE effect on the Okanagan real estate. Here is why:
1) Interest rates were suppose to start creeping up in Canada. That is not going to happen now with our dollar down. We get to enjoy a few more years of ridiculous low interest rates. That is a good thing if you have a mortgage to pay! (Bank of England is actually in discussions to cut their lending rates).
2) US dollar is up while our dollar is down which means more US buyers coming to the Okanagan. I showed 2 couples properties yesterday who were visiting from Oregon.
3) U.K. real estate is going to take a hit as there is going to be a downturn in net U.K immigration as a result of Brexit and international investment money is going to move from London to other countries which are considered safe havens. Yes, Canada is included on this safe haven list.
4) Asian and Middle East real estate investors will be looking for safer areas to invest their funds and Canada is going to be a top destination, especially while our dollar is low! Our real estate prices look like bargain.
5) China-based investments in Vancouver are going to increase and those increases are going to spill over into the Okanagan markets as middle class buyers are pushed out of the Vancouver market.
Lake Okanagan Realty Ltd.
Tel: (250) 870-2792