Don’t let anyone fool you, 2023 will be a better housing market than many industry experts are predicting. While the housing market is clearly affected by the end of historically low mortgage rates, which as intended, dampened the appetites of buyers caught up competing in the home buying frenzy of 2020/2021 there is much to be optimistic about!
We do anticipate decreased unit sales in comparison to the unprecedented market of the last few years. Some buyers will delay and remain renters which will put continued pressure on rental accommodations and rates.
Those Buyers who enter the market will feel the advantage of increased inventory and more options in 2023 but will not feel any significant price deceleration. Buyers will adjust their budgets to the reality of higher interest rates, astutely recognizing that housing pricing continues to escalate and that the artificially low rates of yesteryear were just that – artificial.
Often when we discuss the real estate market collectively, we often analyze it as an investor would but, these are not the needs or views of our clients.
Our clients are getting married, starting, or expanding families, downsizing, moving into a more maintenance free lifestyle, or relocating for a career opportunity every single day here in BC.
And if all of that is not enough to think about Gen Z and Millennials will enter the housing market in 2023 and 2024 creating even more demand.
When you consider that in the 2021 Census of 23,957,760 Canadians in the working population, 33.2% were Millennials, 29.5% were Gen Xer’s 19.7% were Baby Boomer and 17.6% were Gen Zer’s,
That is a lot of home buyers! We anticipate that in order to meet their budgets, these First-Time Home Buyers will opt for a condominium or townhomes as an alternative to a single-family first-time home.
We are optimistic about the 2023 Spring selling season in light of the easing of supply chain shortages and the continued signs that inflation is decreasing. We will be watching the labour market closely as unfortunately strong labour markets have the potential to drive up interest rates.
All in all we anticipate that the housing market will stay stable over the next 3-5 years which is exactly what industry insiders have been wishing for! As interest rates move down affordability will improve and demand will increase.
Each client, property and market is unique.
Call your RE/MAX REALTOR® for knowledgeable real estate advice. We are your experienced, local market experts with world connections.
Deborah Moore Broker Owner
RE/MAX Orchard Country
RE/MAX Penticton Realty
RE/MAX Realty Solutions
We hope that this month’s communication finds you and yours well in good health! As tribute to this month of love we would like to thank you for allowing us to serve you in the past. We LOVED being part of your journey!
280 properties were listed in the month of January in the South Okanagan which is up almost 21% over last January.
Unit Sales across the South Okanagan however have not kept pace with new listings and kicked off the New Year off with an extremely cold start with only 66 unit sales which is down 56% from the 153 unit sales reported in January of last year.
That being said, January of last year had an inordinately strong start with one of the strongest Q1’s in years.
The average amount of days it takes to sell a property in the South Okanagan has increased by 2%, meaning it is taking a little longer to sell property…unless you are selling a single family home, which has decreased from 85 to 74 days.
In Penticton 84 properties were listed for sale in January which is just 3% off last January’s listing numbers.
Unit sales in Penticton, like the entire South Okanagan and BC were down significantly as the market adjusts to the higher interest rates.
Today, in Penticton there are 308 properties available for sale.
While some of our Buyer clients continue to work through new challenges in qualifying for higher interest rate mortgages many of them are reporting the benefits of more selection and a less competitive market.
Our Seller clients continue to realize valuable returns on their investment when they sell and are also often choosing to port their existing, low rate mortgages to new properties when they move.
As always, we are here to provide you with timely information and assist you in making smart investment decisions.
We are YOUR trusted advisors, with world connections!
In Osoyoos 49 properties were listed for sale in January which is up 36% more than those that were listed in January of 2022.
Unit sales in Osoyoos, like the entire South Okanagan and BC were down significantly as the market adjusts to the higher interest rates.
Today, in Osoyoos there are 263 properties available for sale.
The average days to sell a property has decreased to 113 from 121 days last year as Buyers decisively put a ring on well appointed properties in advance of crowded spring markets.
In Summerland 49 properties were listed for sale in January which is more than double the amount that were listed in January of 2022.
Unit sales in Summerland, like the entire South Okanagan and BC were down significantly as the market adjusts to the higher interest rates.
Today, in Summerland there are 90 properties available for sale. The average days to sell a property has decreased to 41 from 60 days as Buyers decisively put a ring on well appointed properties in advance of crowded spring markets.