Back In The Valley
Back In The Valley
While plenty of real estate markets have experienced highs and lows going into and coming out of the pandemic, the Okanagan continues to maintain a unique standing. Unlike many Canadian real estate markets, the Okanagan (and Kelowna in particular) was on a steady climb before the covid-19 pandemic brought the world to a screeching halt. Kelowna has always been the best place to live, but now the word is out and the rest of Canada’s quickly taken notice.
Like we’ve touched on plenty of times, the Kelowna real estate market saw a massive influx during the pandemic, skyrocketing prices and driving down availability, officially making our region the most desirable to live in the country. Not only this, but commercial development and interest came hand in hand with the residential market boom. So, what does this mean for the market now that we’re in 2023 and the pandemic is in the rear-view mirror?
Without getting too technical, the Bank of Canada has set out to tame inflation down to a rate of 2% (compared to its peak rate of 8.1% last year), which has encouraged a lot of recent mortgage interest rate changes. In the last year alone, the BoC has raised interest rates eight times in a row to combat this alarming rate of inflation, showing success earlier this year by driving things down to 5.9%. While this is still a ways off from their 2% target, we’re on the right track to re-stabilize the economy and property markets.
These changes combined with the increasing inventory availability in the Okanagan are starting to drive our market back to pre-pandemic conditions and introducing some stability. All that being said, it’s important to keep in mind that the Okanagan’s pre-pandemic market conditions are far from a negative outcome. Admittedly, we might not be hitting the same peaks that we’ve seen over the last couple years, but the Okanagan’s ‘valley’ in this case is still sitting pretty.
Looking to learn more about our ever-evolving Okanagan market conditions? Let’s talk and help set you on the right path 🙂
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