The real estate market in Kamloops has changed and become a buyer’s market. Due to this change and the new construction coming on the market in the near future here is what I think will happen, and has already begun to present itself. Many people who have been trying to sell in the last few months have decided to take their homes off the market in favour of renting. These home owners will rent their properties for a few years in hope that the market will recover in that time. Currently, there is a very high inventory of homes on the market, and there aren’t enough buyers out there for all these homes. Rising inventory and dropping sales is adding to the rental supply as numerous listings expire and sellers pull their properties off the market. There has been a lot of new construction in Kamloops, single family homes, duplex units, townhouses and apartments. With all the new buildings just built and some other developments scheduled for completion in 2009/2010 there will be much more rental supply.
It is inevitable that monthly rates to rent a home will eventually fall in Kamloops because of an increased supply, more choice and more competition among home owners to get responsible tenants. This is great news for those who rent in Kamloops, the opportunities to pay less for more will eventually be a reality.
With prices coming down renters will soon be able to afford a home of their own. Those who previously couldn’t afford mortgage payments because of high housing prices will soon be able to take advantage of lower property prices, low interest rates and more leverage in negotiations for a property.
Falling rental demand or rates has not happened in Kamloops yet. There is still a very low vacancy rate among residential units. This change will take some time, it typically trails the real estate market. If you are a first time home buyer, or currently renting and want to look into buying, now is a good time to start watching the market. You will be amazed by the price changes over the next six months to a year. To receive new, price reduced and sold listings as they are reported to the Kamloops Real Estate Board contact me today.