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How is the Central Okanagan Housing Market and When is the Best Time to Sell in 2017?


Blog by Steven Bergg and Allen Epp | February 1st, 2017


The short answer is, right now is the hottest market for sellers of all time because of low inventory levels at all price points and extreme shortages in some.  Here is  supply and demand information by price range:

Price Range

Total Active Listings

Sold in 2016

Sold Jan 2017

$0 - $250,000

269

1,429

51

$250,000 – $500,000

478

3,063

118

$5000,000 – $750,000

317

1874

68

$750,000 – $1M

167

466

19

$1m – 1.5M

116

227

3

$1.5M – 2m

91

55

1

$2m and over.

126

60

2

              *Sales figures from O.M.R.E.B MLS data.


To view supply and demand data for specific areas, just click on the neighborhoods tab above to the right and select your area of interest.  

Moving forward into this year, nobody knows what will happen and anyone who tells you they do is purely speculating because our current market has no historic precedent.  All we can predict accurately is what will probably happen in the next 4-6 weeks based on supply and demand.  Beyond that, we must look to economic and historic trends.

Historically, our market followed about a year behind that of Alberta in strength and health for over two decades until last year.  Using that proven data model the banks and real estate watchers were predicting a tough 2016 for Kelowna.  However, the Vancouver buyers finally started travelling this way on mass which made up for the reduced interest from Alberta.  In 2015 the number of Alberta buyers was almost 30% greater than the amount of those purchasing that came from the lower mainland. In 2016, that trend was reversed! This kept housing demand very strong despite a substantial drop off in activity from Alberta-based buyers. 

The question which has yet to be answered is;  How will the recent downturn in the Vancouver market that has occurred since the introduction of the foreign buyer’s tax affect us here in the Okanagan?  In the short term with low inventory and built up demand, it is expected that sellers will continue to have the power. Moving forward, Alberta is starting to pick up with news of pipeline construction that is coming. Also, The B.C Premier announced foreigners with work permits that live in Canada are now exempt from the purchase new tax. Encouraging signs perhaps, but the only thing we know for sure is that if you want to get top dollar for your home right now is the best time in history!
 

Tip: The agent you choose makes a BIG difference: Despite our hot market, over 3,000 home owners had their listings expire unsold, or had to withdraw their home from the market un-sold in 2016.  Even those that did sell often did not leverage the market dynamics to get the optimal selling price.  It is often said, in a hot market a lot more money is left on the table. If you want to sell in 2017 and plan to maximise your return on investment call The Bergg Homes Team at 250.575.1432.  Find out why 19 out of 20 home sellers that take the time to interview multiple agents and compare the different approaches, select our team to get their home SOLD!