As we slowly make our way into the New Year, the usual speculation about future market conditions continues. Like we talked about last month, there are plenty of market influencers to consider in early 2024 that will set the tone for the rest of the year, like the incoming short term rental restrictions, new property and university developments in Kelowna, as well as stabilizing inventory and pricing averages.

The most obvious influencer of the property market in BC will come down to the short term rental restriction laws being implemented by the provincial government May 1st, which will in all likelihood create an influx of available listings. As much as some might disagree with this policy, the Kelowna city council recently voted in favour of short term rental restrictions, stating that “Affordability and access to appropriate housing is top of mind for Kelowna residents…” and that “These changes are being recommended to address challenges being experienced in the community and to turn more units into long-term homes for people.”

Another considerable factor is the Bank of Canada’s decision to hold off on interest rate changes, maintaining the current rate of 5%. If this continues to hold, combined with an increase of available listings, the local market conditions could become quite appealing to new buyers this year. The BC Real Estate Association predicts that with these rates in place, we could see an increase in market activity of up to 8% in early 2024, stating that “…normalization of new listing activity should result in a more balanced market this year with relatively stable pricing.”

Controversial as they may be, these combined factors could ultimately lead to a more stable housing market for both inventory and pricing, attracting new buyers that may have been hesitant to purchase in 2023.

Looking to learn more about our evolving market conditions in 2024? Let’s get in touch and work together this year to make the most of the situation and find your perfect home at the right price!