According to the Association of Interior Realtors (AIR) the market at the beginning of 2022 was quite pressurized due to an influx of people moving to B.C.’s Southern Interior.
“Wow, well the market is very different than it was this time last year,” said Association of Interior Realtors president Lyndi Cruickshank.
“As we moved into January and into the spring, we just saw an incredible number of people making big life choices and moving from where they were to where they wanted to be, which in a lot of cases was the Okanagan.”
However, active listings for Okanagan homes were at an all-time low and the supply could not keep up with the demand.
In February of 2022, AIR said inventory levels in the South Okanagan were down approximately 57 per cent from the same time last year, which was already substantially lower than years prior.
Despite active listings dipping to an all-time low, prices didn’t follow suit.
“Unfortunately for many people, it put them in a position where they were really struggling to be able to find a home because we had such a tight inventory,” said Cruickshank.
“People were concerned to put their house on the market. It was a real double edged sword for a long time. You might have wanted to move but you are afraid to put your home on the market because you didn’t know where you were [going to go].”
The market now has shifted again and more closely resembles the Okanagan housing market pre-pandemic.
One major change this year, however, has been rising interest rates.
“As we started to move through this year, and interest rates started to go up, some good things started to happen. We started to see more people being confident putting their homes on the market, it started to release some of that pressure,” said Cruickshank.
“The unfortunate part is it’s made it a lot more difficult for some people to purchase and it’s making it difficult for some people to maintain the financial commitments that they’ve had.”
Meanwhile, the government introduced a trio of new regulations this year including a three-day protection period to give homebuyers time to take important steps before buying a home.
The three-day period will allow buyers to secure financing and arrange a home inspection.
“The second, interesting change that’s coming on Jan. 1 is going to be a restriction of foreign buyers purchasing property in British Columbia,” said Neuhouzz Real Estate Group owner Sergej Sinicin.
“I think the intentions are good by the government, but is it enough to make the change in what they are trying to achieve which is to create more fully affordable properties to British Columbians? I don’t think it’s going to make a significant change and impact.”
New legislation was also introduced to remove almost all rental restrictions in condo buildings with the exception of buildings for people 55-plus, with in-home care allowed.
“I’m referring to that as the ‘Wild Bill 44’ because they presented it and then they passed it without substantial time for discussion to iron everything out,” said Sinicin.
“And there were so many unanswered questions that were left on the table.”
Moving into 2023, both Sinicin and Cruickshank say it’s hard to predict what next year will look like following unprecedented times, market-setting moments and new regulations.
“My best guess is that locally here in the South Okanagan, we are still going to be okay, we’re going to ride out that storm,” said Sinicin.
“We’re going to see, hopefully, next year maybe in the second quarter, maybe in the third quarter banks are going to start dropping their interest rates. Buyers, consumers are going to start getting adjusted to the new normal, and they’re going to get back to the market right now.”
And if you decide to purchase or sell in the new year, Cruickshank recommends consulting a professional.
“I think no matter where you are, the most important element is affordability,” said Cruickshank. “You need to make sure the decisions you are making are the right decisions for you, at the right time.”
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
