Okanagan Real Estate Review
Welcome to the Real Estate Review for the interior of British Columbia for March of 2024. The biggest point to note in the first quarter of 2024 for the interior of B.C. and across Canada is that inventory is rising in all areas (except Edmonton).
The inventory rate rising can be due to two different forces. First, it can be that more houses are coming on the market. Second, it can be that the demand for those houses is decreasing.
Decreasing demand
Usually decreasing demand means a downward turn in the market. However, this is not the case here. There are a number of political processes going on in British Columbia and Canada that are altering the amount of inventory on the market.
Firstly, the recent changes to short-term rentals. This political and legislative move makes it illegal to rent out a property as a short-term rental if you do not live on the property. There are some exceptions but the majority of short term rentals have shut down. The investment opportunity has gone away and they are now being put up for sale.
Secondly, the ban on foreign buyers for Canadian Real Estate has also contributed to a rise in inventory.
Lastly, there is now a new flipping tax in BC which will also likely stop some people from buying and flipping houses which will again increase inventory.
The markets in the interior of B.C. are doing slightly better or are equal compared to last year to date numbers. Inventory is up from 10 to 35% throughout the interior of BC. This is great for buyers and has put the region into a balanced or slightly a buyer’s market.
Interest Rates
At the last announcement by the bank of Canada on April 10 the overnight lending rate remained at 5%. Projections say that these rates will start to inch down in the second quarter of 2024. That remains to be seen. The next announcement is June 5. This should help the market and create some renewed activity and demand.
My prediction is still that prices will rise in the interior British Columbia about 3 to 5%.
As always, this is just the real estate world according to Rom. Contact me today for all of your real estate needs!
