Kelowna Real Estate Market News

We've heard a lot about the Speculation Tax coming to parts of British Columbia, without know exactly what it is going to look like.

This week the BC Government finally tabled the new Tax, which has yet to be voted on.

The BC areas affected are -:

All residential property owners in the designated taxable regions will have to complete an annual declaration to claim any relevant exemptions. Where there are multiple owners of a home, a declaration must be completed for each owner.

Further information on how to declare will...

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The British Columbia Real Estate Association (BCREA) reports that a total of 5,573 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in September, a 33.2 per cent decrease from the same month last year. The average MLS® residential price in BC was $685,749, down 1.1 per cent from September 2017.

Looking at the numbers for Kelowna and the Central Okanagan the Average Sale price in September 2018 was $534,943 up from $496,433 (a 7.8% increase) compared to September 2017 and listing numbers were up from 3,238 to 4,172 and increase of 28.8%.

Total sales dollar volume was $3.8 billion, a 34 per cent decline from September 2017. “BC home sales continue at a slower pace compared to last year,” said Cameron Muir, BCREA Chief Economist. “The impact on affordability and purchasing power caused by the mortgage stress test and moderately higher interest ...

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It’s been a tough month for the Kelowna Real Estate market. Every day we have seen price reductions as anxious Sellers come to terms with the fact that they have had fewer showings than they were expecting, and are left wondering what it’s going to take to get their property sold.

Buyer continue to sit on the fence, and indeed a number of them have not even visited yet to start the buying process, they are just sitting on the edges watching to see what the Real Estate market will do.

We have now seen the full impact on the Mortgage Stress Test, the threat of rising Interest Rates and the upcoming Speculation Tax that is about to be voted upon in the BC legislature during October, which will affect Kelowna and West Kelowna.

The impact of Government intervention in the housing market has certainly had a dramatic effect, where in some cases first-time buyers have seen their purchasing power reduced fine 25%.

Let’s take a look at this months numbers.

Kelowna Real Estate...

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The August 2018 Buyers Survey Results are now out for Kelowna Real Estate Buyers and the Central Okanagan Area.

I am pleased to report that after a very low July, First-time Buyers were more active in the market increasing from 11.8% to 15.8%, and then not surprisingly there was an increase in higher ratio Financing from 8.9% to 114.9%. The biggest fall being 'Downsizing Buyers from 16.2% to 11.1%.

More Couples without children were active - increasing from 19.2% to 24.9%.

There were a few more local people buying last month up from 53.5% to 55.7%. Lower Mainland Buyers held steady at 20.5% just slightly down from July's 21.1%, while Alberta Buyers were up from 8.8% to 11.9%. In other areas of BC, Buyers were down from 10.2% to 7.2%.

As far as areas go, Shuswap saw an increase in Buyers from 9.7% to 13.9%, while the number of Buyers in Kelowna, West Kelowna and Vernon were slightly down.

Here are the full details below -:

Best describe your most recent Buyer (moving to/from...

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Updates to Property Transfer Tax Return now in effect Changes to the Property Transfer Tax (PTT) return are now in effect as of Monday, September 17.

These changes are expected to provide the BC Government with better tools to ensure property buyers are not evading taxes they owe and increase evidence of true real estate ownership.

When making a real estate purchase through corporations or trusts, buyers and transferees with significant interest in property must be identified on the PTT return and will have to disclose the following information:

 name

 date of birth

 citizenship information

 contact details, and

 tax identification numbers.

It’s important to note that:

 the change is not retroactive (it only applies from September 17 onwards)

 it is intended to be applied consistently to all property types and classes, including commercial and residential, and

 all data collected on the PTT return is treated as confidential.

There are exemptions for certain trusts such as ...

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The BC Real Estate Association has just released its Fall 2018 Mortgage Rate Forecasts.

As expected Mortgage Rates are likely to be on the rise!

The Canadian Mortgage Market is undergoing significant tightening with the availability of credit falling and interest rates rising. The mortgage stress test introduced in January negatively impacted home sales nationwide as prospective homebuyers with more than 20 per cent down payments were denied access to loans they would have qualified for under the old regulatory regime. As a result, mortgage credit growth in Canada has slowed dramatically. On the pricing side, monetary policy continues to be the primary driver of higher mortgage rates in 2018 as the Bank of Canada embarks on its first tightening cycle since 2004. Although the 5-year qualifying rate was fairly steady over the third quarter, as the Bank continues to tighten, mortgage rates will almost certainly follow.

When the Bank of Canada adjusts its overnight rate, it influences borrowing...

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