A Real Estate Investor can do everything wrong and make a fortune and do everything right and lose their shirt. What is the deciding factor that can make so much difference? Timing. For instance, anyone who bought Real Estate in in the Okanagan, Shuswap in 2002, even if they paid too much, and sold in 2007 would likely have made a very good return. Anyone who bought in 2007 and sold in 2013 would likely have lost money. The major difference was the timing. We are in a very unique time for investors in the Okanagan Shuswap Real Estate market. The oil and gas industry is dragging the rest of the country down. Most reports say that Canada has been in a recession in the last 2 quarters. The bank of Canada lowered their over night lending rate to counteract this effect. However, people in BC find that hard to believe. BC's economy is leading the country and the Okanagan Shuswap is in a rising market. Additionally, although sales are at 2007 levels in our areas the inventory is still high so prices are not shooting up. They are rising slowly. Inventory is about 1.5 times what it was in 2007. The inventory has been dropping for the last 2 years but there was so much inventory put on the market that did not sell after 2007 it will be a while before it gets to the critical mass that starts pushing prices up aggressively. In conclusion the market is rising and the high inventory should keep the recovery as a slow and gradual one, at least for a while. The Okanagan Shuswap area is in great shape and the timing is perfect for Real Estate investment.
Real Estate Investment Corner
- July 24, 2015