Penticton Real Estate News | Feb 2023
We’re midway through the first fiscal quarter of 2023, which means that it’s time for a real estate news update from our Penticton office. Is there anything new in the news that may impact (or incite!) plans to get a mortgage in the BC Southern Interior this early in the season? Let’s find out!
Real Estate Updates for Penticton and the Surrounding Area that New Buyers Want to Know About
Vacation Rentals Drive Up Rent, and Interest in Buying?
Earlier this month, the Penticton Herald reported that a proliferation of short-term rental (STR) properties caused long-term renters to pay nearly $50 million more than they otherwise would have over a 5-year period. Vacation property mortgage holders in the area have realized that they can use the revenue from Airbnb and VRBO to pay down their home loans. While this may be a bummer for long-term renters, it’s also an incentivizer. Being a resort community, don’t expect the municipalities of the BC Southern Interior to issue a ban on STRs anytime soon. Longterm renters must come to the realization that rent will remain high, and grow, as the seasons progress. It’s time to finally get a mortgage of their (your?) very own. And when they (you) do, you too can end up in a position to one day get a second home and use the STR market to generate revenue and real estate wealth. Contact us to learn more about how to get started.
Benchmark for Single Family Homes Drops Below $1 Mill. Act Now!
Just six months ago, the average price of a single family home in the Okanagan was at around $1,000,000. The Herald now reports that the Okanagan housing market has fallen to a 15-month low. It has settled at around $977,000, and buyers should act quickly.
But is there really a difference between a $1 million home and one that is about $23K less? Yes. Canadian law states that homes with a purchase price of $1 million or over require a downpayment of 20% or more. So you would automatically require a $200,000 downpayment. But for a $999,999 home you may qualify for a 7.5% downpayment (for example) which means you would only need a $75,000 downpayment (along with cost of mortgage insurance). With home values as they are, you have a LOT more flexibility with respect to downpayment and income requirements.
Further spurring your interest to act fast, is the fact that sales are about to pickup. In fact, in the very same article, the Penticton Herald turned to our very own Rene Carloni for insight into what is about to occur:
““Activity has picked up significantly since the new year. The activity will take some time to show up in the sales numbers but I think you’ll see higher sales numbers in the coming months versus the last few,” added Carloni.”Penticton Herald | Feb 7 2023
The Penticton Herald has turned to Carloni Mortgages for advice, and as a home buyer you should too. Give our office a call at 250.493,9111 for a FREE consultation.