Brett Boholij

Hey everybody, I’m back again with another market update for real estate in Kelowna & the Central Okanagan. The burning question on everyone’s mind: Is the Spring Market in full swing? Are property sales skyrocketing, indicating a fully rebounded market? Not quite yet. However, what we’ve observed as real estate agents in recent weeks is the market beginning to stir from its slumber. It’s not quite as if the market has already downed its coffee and hit the treadmill, but it’s certainly stretching out, rubbing the sleep from its eyes, and moving in the right direction.

Properties are starting to see movement, although sales are still down by almost 6% compared to this time last year. Nevertheless, we’ve experienced a notable uptick from last month, with a nearly 19% increase in total units sold, reaching 268. It’s worth noting that we faced a deeper hole to climb out of compared to last year, so realistically, we are progressing at a predictable pace.

The absorption rate in the Central Okanagan remains just under 10% at 9.3%. Looking ahead, the Bank of Canada is scheduled to make another interest rate announcement for its overnight rate next Wednesday, March 6th, with the current rate holding steady at 5%. The likelihood of a rate drop next Wednesday is slim, with most experts predicting rate cuts closer to summer. Meanwhile, the U.S. inflation rate has dipped into the 2% range, but rate cuts have yet to commence. Canada’s current inflation rate stands at 2.86% and is trending in the right direction, indicating that rate cuts are imminent. The question remains: who will act first, Canada or the U.S.? (Probably the States.)

Now, let’s delve deeper into the real estate statistics from the past month.

Average Sales Price: The average sales price has decreased slightly by just over 5% compared to this time last year, settling at $724,559.
Sales Price by Property Type: The average sales price of individual property types varies, with condos and townhouses experiencing a slight decrease, while single-family homes have seen a slight increase.
List-to-Sell Ratio: The list-to-sell ratio has increased by 2% to 96.56% from last month.
Days on Market: Properties are spending an average of 74 days on the market, which is an 11% increase compared to this time last year.
Inventory: Current inventory has surged by 28% compared to this time last year, totalling 2,880 listings.

In summary, while there haven’t been any dramatic shifts over the past month, I anticipate a significant uptick in the stats for March and April, particularly if there is a cut in interest rates. If you or anyone you know is considering buying or selling in Kelowna and the Okanagan, I’m here to help and I am never too busy for your referrals.

Embarking on the journey of buying a home in beautiful British Columbia, Canada, is an exciting venture. In this comprehensive guide, we’ll explore the 10-step home-buying process, providing you with valuable insights and expert tips to navigate each stage with confidence.

1. Choosing the Right Realtor

Selecting the right Realtor is the initial crucial step in your home-buying journey. Seek referrals from trusted sources and assess their communication skills and standing with the real estate board. Your Realtor acts as your guide, offering expertise in property selection, market trends, and negotiations. Building a harmonious relationship ensures a smoother process, with your Realtor becoming a valuable partner in your homeownership journey. Pro-tip Find a realtor through social media such as YouTube. That way you can get to know your realtor before you even meet them by watching their content and learning their personality to see how they represent themself as a professional!

2. Getting Pre-Approved for Financing

Before entering the market, secure financing by working with a mortgage broker. This involves assessing your financial situation, determining loan amounts, and establishing interest rates. Pre-approval not only clarifies your budget but also positions you as a serious buyer, strengthening your negotiating position with sellers and streamlining the overall buying process. This is a MUST do step especially before you go out to see properties, save yourself a huge headache and a lot of heartache.

3. Setting Your Wants and Needs

Clearly define your preferences and must-have features to narrow down the property search. Your Realtor will understand your priorities, ensuring a focused and efficient search aligned with your income level. This step helps you create a comprehensive list of desired amenities, allowing your Realtor to tailor their recommendations to meet your specific needs and preferences. In the quest for your ideal home, it’s important to recognize that finding a perfect match may not always be straightforward. Clearly defining and prioritizing your non-negotiables as “must-haves” will significantly streamline the process when the time comes to discover your dream home.

4. Sitting Down with Your Realtor to Go Over the Process

A face-to-face meeting with your Realtor is crucial to understanding the entire home-buying process. Discuss roles, responsibilities, legal aspects, contracts, and ongoing support, setting the foundation for a successful collaboration. This meeting provides an opportunity for you to ask questions, address concerns, and gain a clear understanding of what to expect at each stage of the buying journey. Also, make sure you understand all of the costs associated with purchasing a property from home inspections, property transfer tax, deposit amounts, etc.

5. Viewing Properties

Embark on property viewings guided by your Realtor with your criteria in mind. Visualize potential homes, share feedback, and make informed decisions, leveraging your Realtor’s insights and expertise. As you explore different properties, your Realtor will provide valuable information about neighbourhoods, market trends, and potential resale value, helping you make well-informed decisions. For those traveling from out of town, it’s a smart move to optimize your visit by scheduling multiple property showings in a single day, maximizing your time and making the most of your trip. However, if you’re a local resident, my suggestion is to promptly check out any new listings that pique your interest. In the dynamic real estate market, properties can move swiftly, and acting promptly ensures you don’t miss out on opportunities that may not last long on the market.

6. Making an Offer

When you find your dream home, your Realtor takes the lead in preparing and submitting an offer. This involves understanding the Contract of Purchase and Sale, with your Realtor’s negotiation skills ensuring fair market value. Your Realtor will guide you through the intricacies of crafting a compelling offer, considering factors such as market conditions, seller motivations, and property comparables. Pro-TipIf you come across a property that captures your interest and you’re contemplating a purchase, swift action is key! Properties often find new owners at a remarkable pace, emphasizing the importance of timely decisions. Keep in mind that, even though you may have a rescission period, it’s essential to utilize both that and the subject removal period efficiently for thorough due diligence and a comprehensive evaluation of the property’s condition.

7. Subject Removal Period

Once your offer is accepted, the subject removal period begins. Fulfill conditions like financing approval, property inspection, and review of strata documents with your Realtor guiding you through the necessary steps. Your Realtor will work closely with you to ensure that all conditions are met, addressing any concerns that may arise during this critical phase of the home-buying process. Just remember you must actively work throughout these two weeks to remove conditions in order to firm up the deal and secure the home. Now is NOT the time to sit back and relax!

8. The Deposit

Upon fulfilling subjects, pay a negotiable deposit ranging from 5-10% of the purchase price to secure the property. Your Realtor’s brokerage will likely handle the deposit, holding it in a trust account, solidifying your commitment. This step is essential for both parties involved, signalling your serious intent to proceed with the purchase and providing the seller with confidence in the transaction. You have several options for submitting the deposit: you can opt for a direct deposit at the bank where the trust account is held, deliver the deposit as a bank draft to your realtor or their brokerage, or choose the convenience of a wire transfer into the trust account. However, if you decide on a wire transfer, exercise caution and ensure you factor in enough time for processing within the specified timeframe mentioned in the contract. Typically, this process should be completed within 48 hours of final subject removal, excluding weekends and holidays.

9. Closing

Closing involves finalizing legal and financial aspects, including payment of remaining balances, legal fees, and property transfer tax. Your Realtor coordinates with legal professionals, ensuring a smooth transition on completion day. Throughout this stage, your Realtor serves as a liaison between you, the seller, and legal professionals, ensuring all necessary paperwork is completed accurately and in a timely manner.

10. Moving

After closing, plan the logistics for moving into your new home. Your Realtor’s support doesn’t end with closing; they provide resources and recommendations for a seamless move, ensuring a positive start to your homeownership journey. Whether you need assistance with finding reliable movers, connecting utilities, or accessing local services, your Realtor remains a valuable source of support as you transition into your new property.

Congratulations on reaching the end of our 10-step guide to home buying in BC, Canada! Armed with this knowledge, you’re well-equipped to navigate the complexities of the real estate market, secure your dream home, and embark on a successful homeownership journey. If you have any further questions or need personalized advice, don’t hesitate to reach out to your trusted Realtor. Happy house hunting!

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Outdoor Lifestyle: Lakes, Mountains, and Endless Adventure

Climate: Mild Winters and Sun-Drenched Summers

Real Estate: Finding Your Perfect Home

North Okanagan:

Central Okanagan:

Market Activity:

Economic Indicators:

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Introduction

Exterior Maintenance

1. Inspect and Clean Gutters

2. Check Roof Shingles

3. Inspect Siding and Trim

4. Clean Windows and Screens

5. Check Outdoor Lighting

Interior Maintenance

1. HVAC System Inspection

2. Test Smoke and Carbon Monoxide Detectors

3. Clean and Inspect Chimney and Fireplace

4. Check Plumbing Fixtures

5. Test Sump Pump

Landscape Maintenance

1. Prune Trees and Shrubs

2. Fertilize Lawn

3. Inspect Irrigation System

4. Clean Outdoor Furniture and Equipment

Market Overview

Sales Performance

Pricing Trends

Listing Activity

Market Outlook