Here are my thoughts for the coming year in Kelowna Real Estate. While some of these items are based on statistical trends, others are based on my personal experience and my "gut feelings"; for the past few years I have been fairly accurate - within reason.
- I believe interest rates will inch up throughout the year. Toronto and Vancouver combined with strong sales in Alberta will make the feds put some pressure on the market by increasing rates, 3.99% for a 5 year very soon.
- Home prices under $600k in Kelowna will solidify and increase up to 5% this year. We already see absorption rates climbing to levels not seen in 7 years.
- Based on item #2, I believe this is the year to "upgrade" your home if you have a nice property currently priced under $550,000 If you plan to spend at least $150k more on a new home, upgrade! I believe sales above $650,000 are still a little soft.
- Rent for investment properties will need to increase. As such, the availability of income property in the area will drop significantly. The market will switch to a "Sellers Market" in February making invest buys tougher to find.
- As "investment" properties begin to dry up, flips and renovations will gain traction as buyers look for "move in ready" property. Seller's who renovated will win. Investors with a solid "flip" strategy could also do well. At the same time, Kelowna often has a shortage of good renovation project homes.
- I believe that this year, sellers will make significantly more money with a professional listing. While I do predict that it will become a seller's market, buyer's will only "reach" or pay more for homes marketed and promoted well. And by a "professional listing" I mean a full service listing with professional photos, custom URL, full social media marketing all headed up by a full time Designated Agent. I will produce my stats from last year in a blog post soon to show how much better we are doing for our sellers in terms of speed and increased sale price.
- My gut feelings says an economic bump in the US will cause Gold prices to increase (just a guess).
- Buyer's not prepared to write quick full price offer.
- I will have an amazingly productive year - because I will work very hard to achieve this.
- I also predict that if you call me for help, you will be outrageously happy with the service that Robyn and I provide for you.
Happy New Year!