This is a very interesting time to be in Real Estate. What the market in the Okanagan Shuswap is doing right now is basically, "same old, same old". Record breaking sales activity, prices and absorption and decreasing inventory; all show a continued rise in the market. However, it's not what is happening that is interesting; it is what is going to happen. There are conflicting forces affecting the market that we have never seen before. Here is a list of a few:
- Vancouver is correcting. Sales are down 26%, Inventory is rising and prices are starting to inch down. This trend will likely escalate in the months to come. We have not seen this magnitude of change in decades.
- The 15% investor's tax is increasing the downward pressure on Vancouver and driving foreign investors to other areas of Canada
- However, China is starting to clamp down on money leaving the country. They are changing legislation and issuing fines for large amounts of money leaving China. Will this deter Chinese investment and immigration?
- Toronto Realtors are blogging about increased foreign investment from China resulting from the Vancouver tax
- The difference in the dollar and the upcoming election is continuing to create investment interest from the US towards Canada
- However, the USA is showing signs of softening
- Alberta is continuing to correct which is increasing migration from there to the Okanagan Shuswap
- The percentage of buyers from the Vancouver area purchasing homes in the Okanagan Shuswap area has doubled since 2014. People are cashing in and moving to our area. Will this increase or decrease with the recent changes in Vancouver?