OKANAGAN/KELOWNA REAL ESTATE MARKET
The Bank of Canada is set to review their overnight bank rate tomorrow (September 9th). The National Bank Financial is predicting that the Bank of Canada will cut the rate to 0.25% due to Canada's current "recession". In my opinion it is NOT going to happen. There has been some recovery in the Canadian economy recently, we have a Federal election coming up....it is too politically sensitive to lower the rate right now....it won't look good. The Bank of Canada's next rate decision will be October 21st. That is right after the Federal Election. I predict they will hold the rate through the end of the year at least.
In regards to Okanagan/Kelowna real estate prices: yes, there will be a slight dip in prices this Fall/Winter. Why? Because we always slow down in the winter, the media is reporting doom and gloom recession, oil rates are down, there is uncertainty surrounding the election, etc. There will be uneducated people who will panic and fire sale. I am already seeing it start to happen. If you are on the fence about purchasing real estate you need to smarten up and BUY NOW! I am scrambling to buy properties now. Pay attention to what the experts are doing and follow suit. I may not know how solve world peace or stop global warning but you better believe I know real estate. If I am doing something in real estate, you know darn well I 100% know what I am doing.
This Fall/Winter will be the LAST time you will be able to pick up a real estate bargain in the Okanagan. In the Spring prices will start to increase and they will go up for the next 5-6 years. Why? Because the election will be over - no looming uncertainty. Oil prices will not increase drastically but people will adjust to the new norm of lower oil prices and life will carry on. We will be out of this minor recession. Every country is printing money right now which creates inflation which means hard assets (real estate) increase in price. Interest rates are at an historic low. Kelowna's vacancy rate is at an all time low. You can now use 100% of rental income to help qualify for your mortgage. Canada has an abundance of natural resources. We have great health care, amazing schools, fresh air, nobody shooting you as you walk your kids to school, golf, hiking, skiing....you name it, we have it. I was in Switzerland this summer - Kelowna is prettier. Why would you not want to live here? Compared to Vancouver and Toronto, Kelowna's real estate is a steal of a deal. Aquilini sold out 75% of Sopa Square in ONE weekend this summer to mainly Vancouver buyers at Vancouver prices! Vancouver agents are literally driving their clients up to the Okanagan to buy real estate.
Do your research and look at what Vancouver real estate did from 2005-2015. That is coming to the Okanagan starting in the Spring. Skip getting a latte on the way to work, don't eat out, make the sacrifices you need to make in order to come up with a down payment to buy a property now. Your future and your kid's futures depend on it. Can you imagine being 21 in Vancouver trying to get into the market right now? That will be Kelowna in 10 years. I bring my lunch to work with me and I drive a Ford. My money goes into real estate because I want my child to have a solid future. Real estate has always been the number one wealthy builder - period! You don't wait to buy real estate, you buy real estate and wait.
Lake Okanagan Realty Ltd.
Tel: (250) 870-2792
Fax: (778) 484-5252
506 Doyle Avenue
Kelowna, BC V2Y 6V8