What has been called 鈥渁n unusual market environment鈥� doesn鈥檛 bode well for those trying to break into Central Okanagan real estate.
Despite increased mortgage interest rates and inventory which is inching higher but still far from abundant, housing prices show signs of rising again as 2023 plays out.
Elton Ash, regional executive vice-president of Re/Max of Western Canada based out of 91大黄鸭, said typically when buyers start to pull out of the market, prices depreciate.
But not completely so this year.
鈥淏ut what we are seeing is prices remain relatively stable. Looking at the Metro Vancouver market, the benchmark price is down from a year ago but comparing February to January of this year, there has been a sight increase in prices,鈥� said Ash.
鈥淚t is an unusual set of circumstances. I have been in the real estate business for 43 years and never experienced anything like this. But while it is unusual circumstances, the biggest issue remains a housing supply shortage, whether owner or rental.鈥�
And he feels the federal government has to step up in some way to assist in addressing that housing supply shortage with tax incentive programs for developers.
He said for potential Central Okanagan home sellers, they are hedging their bets that prices might actually increase rather than decrease this year.
鈥淚t creates a lot of head scratching as to where the market is going鈥hinking what to do and how will the market affect the price of my home, and then if I sell now then what I am going to move into, up or down, as there is not much to choose from,鈥� said Ash.
Ash said his own crystal ball is 鈥渁 little foggy right now鈥� but he anticipates a flat housing sales market for the second quarter of this year, and movement starting up again in the third and fourth quarters.
The Association of Interior Realtors residential real estate market report for February shows a 46.1 per cent decrease in sales, at 831 unit sales across the region, compared to the hyper sales market of February 2022, yet up compared to January鈥檚 555 unit sales.
The region encompasses the Kamloops, Kootenay, Okanagan and South Peace River areas.
鈥淭he overstimulated boom of the last few years, along with multiple mortgage rate hikes made many buyers and sellers hesitant to make any moves,鈥� said Lyndi Cruickshank, president of the Association of Interior Realtors.
鈥淣ow that the dust is starting to settle, these buyers and sellers can move forward in a transitionally healthier real estate market more reminiscent of pre-pandemic conditions.鈥�
Cruickshank also echoed Ash鈥檚 sentiments of the need for a 鈥渞efreshed housing strategy鈥� that will expand available inventory in the marketplace.
As the millennial influx to the Central Okanagan follows an upward trend, Ash said he is also encountering the supposed desire for higher density lifestyle options closer to public and commercial services for that generation is finding some push-back.
鈥淭he feeling 12 or 14 years ago was millennials wanted an urban lifestyle, living in condos or apartments, close to public transportation and other services. What you have happening now is those millennials who are having kids are discovering they want a house and a yard just like everyone else in suburbia,鈥� he said.
鈥淭hey want a bit of elbow room and the apartment/condo thing doesn鈥檛 really work that way.鈥�
READ MORE: Development outlook still bullish for 91大黄鸭
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