The question on many people’s minds going into the fall season is a simple one; is now the right time to buy a home? As a realtor I’ve been following trends in the real estate market for over 10 years. For the past eight of those we have seen significant growth across the Okanagan. (The exception was 2013 where we were down .3 per cent and 2019 when the market was down 4.7 per cent).
This year we’re looking at a growth rate of 29 per cent year over year! What were the reasons for this recent surge in sales? These include a number of reductions in the bank lending rates in 2020, fuelled by buying power for homebuyers moving from the Lower Mainland, and also employment patterns changing to a work-from-home policy.
But the great news is that since 2011 your home would have doubled in value on average. Residential investment growth has clearly outperformed most mutual funds. While we may see a slight market slowdown this fall, history shows that Penticton offers a good opportunity for anyone with a long-term view to investing.
Typically, in the fall things slow down. Currently homes-for-sale inventory is very low – there are only 220 residential dwellings of all kinds available in Penticton and one quarter of those will more than likely have offers on them. In May of 2020 we were up to 500! These tend to be a combination of residential homes, condominiums, townhomes, or vacation properties.If you aren’t ready to move just yet, I advise clients planning to sell in the future, to maximize your selling price by upgrades to kitchens and bathrooms; you may recoup up to 75 per cent of this investment, or more. Alternatively, if you are looking to real estate as an income investment rather than your primary residence, Penticton has a number of property management companies that can help with managing rentals. We have less than one per cent vacancy so there is very little to rent. It may be a good time to invest!
Join our email list and receive our monthly “Quick Market Report” that will help you size up and track your investment. Here are links to our weekly Monday Market analysis and other blogs: https://www.simpsonsellspenticton.ca/blog/ . Give me a call to discuss your needs at 250-328-5138 or email me at simpsonsellspenticton@shaw.ca.*** Shannon Simpson is a real estate professional in Okanagan who specializes in providing top-quality results for every client. His passion for offering friendly and effective real estate services has made him one of the most successful and highly-praised Realtors in the local region. Having lived in all three major cities within the Okanagan, he can offer a unique perspective on the regions real estate market, and his services are renowned for their success rates and excellent value!