The Okanagan housing market has seen a massive change in 2021, with house prices rapidly going through the roof! The cause of this cannot be pinpointed to just one specific factor though; indeed, there are actually a few reasons for this.
Notably, changes to key lending rates have accentuated sales. The news of record level lows in mortgage rates encouraged people who were renting, or people who were looking for that second home or vacation home and weren’t quite ready to retire to take the jump. For many people, the urge to buy suddenly presented itself before the revised mortgage stress test came into effect.
Secondly, a large amount of the credit for the 2021 housing market boom must be attributed to the steady rise in lower mainland home sales. During the pandemic, a growing number of people are now working from home, and it isn’t a requirement to be based in Vancouver or the Lower Mainland.
We believe there is a correlation between the sales of properties in the Lower Mainland area and the housing market in the Okanagan Valley. People in Surrey or Richmond moved out towards Abbotsford and Chilliwack, and homeowners there making their move to the Okanagan Valley. It seemed like the right time to enjoy an early retirement where there is such natural beauty, and outdoor space. This has pushed demand for properties from Osoyoos to Penticton, and all the way through to Vernon.
Adding to this, the Alberta economy has become sluggish in recent times, leading to more people moving back to the Okanagan Valley to look for work. Again, this has also had an impact on the house prices.
We saw the peak in demand in the Okanagan Valley between February and June. Bidding wars were commonplace. But as is usually the case, things are starting to settle down as we head into August.
Contact us whether you are buying or selling, count on Shannon Simpson for personal guidance, marketing expertise, and strong negotiating skills. He will go the extra mile for you. Give Shannon a call today and learn what your house is worth, or what’s available.
*** 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!