Construction sites are popping up everywhere in the Kelowna area. The real estate industry in general is pretty healthy in British Columbia, and the Okanagan Valley area is no exception. Canadian Mortgage and Housing Corporation (CMHC) statistics show that Kelowna broke the record with housing starts in 2017 with 3,577 new builds. Single detached homes comprised 923 of those with the rest going to apartments and condominiums, with condos continuing to lead the way.
The condo sector will continue to excel in the real estate industry, particularly because of the new federal mortgage rules. With this new legislation, purchasers with 20 per cent or more down, must qualify for the prime interest rate even if they secure a rate at less than prime. This gives purchasers less money with which to play the field and condos look enticing in this respect.
Prices around the province continue to escalate -- especially in the Vancouver area -- which makes the valley more appealing to those looking to own a home. Also on the plus side, more than 50 per cent of building starts in 2017 were for rental units, so investors are looking positively on the community. That number is the highest it has been in 40 years.
No matter what the real estate market is doing, people will always need a place to call home, whether that is in a unit owned by someone else or in their own home. Issues that go along with selling or purchasing real estate as either a homeowner or an investor are many and complex. Obtaining legal counsel in British Columbia before signing any contractual agreement may save in the long run -- both financially and with peace of mind.
Source: infotel.ca, "WALKER: Kelowna is experiencing a building boom", Mark Walker, Jan. 28, 2018