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Okanagan Real Estate Market Update for Summer 2021

Okanagan Real Estate Market Update for Summer 2021

The housing market undoubtedly exploded in the beginning of 2021 across Canada and that was true for the Okanagan as well. Below we’ll detail some of the notable trends in a Kelowna real estate market update that also are currently being seen across all Okanagan cities.

Kelowna Real Estate Market Update: What Housing Prices Are Currently Like in the Okanagan

First, it’s important to understand how the housing market got to where it is now. With low interest rates on mortgages due to the sweeping effects of the pandemic last year, many people realized they needed more space and the low interest made it possible to get a mortgage for less. However, this created a supply problem as people rushed to get detached homes skyrocketing the prices of the ones available, reaching a climax in early 2021, particularly March.

Now, while the market has taken a small breather, detached home prices are still higher than they’ve ever been in previous years in the Okanagan, but prices have come down a little since the start of the year.

Condos, one of the main indicators of the market real estate forecasters use, are also increasing in price in the Okanagan. With condo owners more willing to sell than homeowners though, prices skyrocketed early on but are flattening out.

Skaha Lake in the Okanagan Valley

Where Is the Real Estate Market Headed?

It’s been forecasted that the real estate market can’t continue to climb or potentially even stay this costly since property prices can only rise so high before they are out of reach for people to purchase.

On the flip side, for real estate investors, there’s never been a better time to sell. Properties are selling for consistently more than the asking price and are sometimes even starting bidding wars. Even in the case of current homeowners, they could end up with a huge windfall if they sell now.

To note, numerous economists estimate the housing market cannot sustain itself this way with properties rising in prices as fast as this. However, the problem is trickier than simply reducing home prices. People who have purchased a home at this time expect it to appreciate, not depreciate in value, but continually rising home prices aren’t realistic since people can’t afford to buy them at most current prices.

Thus, while the market will likely cool off by the end of the year, it’s unclear by how much, or what supply of properties will be available then.

Is Now a Good Time to Buy a Home?

It’s not the absolute best time to buy a home in the Okanagan with prices as high as they are, but they’re also unlikely to come down significantly by the end of the year. If you need a home it’s still a good idea to look for one.

However, the coronavirus is very much a wild card still in play, so while homes are unattainable for some right now, they may not be in a few weeks, months, or years. Just make sure that if you do buy a home, you’re buying what you can afford within your means.

Overall, the housing market is still very hot, so it’s up to you whether or not buying a home makes sense right now for your current needs and desires.

 

 

Find a home that works for you with our help! Our team understands the pulse of the market and can still help you find a home you’re satisfied with. Contact us today to get help!