Okanagan Real Estate News | March 2023
One of the Okanagan Valley’s most trusted news resources regarding real estate and mortgage rates is back with an update, and just in time for Spring Break. Given that you’ve decided that spring is a good time to get a mortgage, you’re wondering if you should get pre-approved today, or wait a little longer. Rather than comb through indecipherable market reports, you can simply read below to find out everything you need to know.
Real Estate Updates for the BC Okanagan Valley that New Buyers Want to Know About
Implications of March 8 Bank of Canada Announcement
The Bank of Canada made its second announcement of 2023 today (March 8). Experts predicted that after announcing a small 25 basis point increase in the prime rate in January, that they would finally halt the incremental increases that they have been making through 2022 into the onset of 2023. So what happened?
The Bank of Canada indeed decided to hold its target for the overnight rate at 4.5 percent. This was the first “no increase” in nearly a year, which indicates the BoC is feeling hopeful about inflation and the state of the economy. As a result, variable ,mortgage rates are anticipated to hold steady and may begin to trend down this quarter.
Okanagan Home Prices Expected to Drop, Then Jump
A couple of weeks ago, the British Columbia Real Estate Association (BCREA) reported that home sales dropped through the back half of 2022, and that the market is currently trending close to 25 percent below normal. Drops logically vary by region, with the BCREA predicting that the Okanagan will see a near 10 percent decrease. This is music to the ears of buyers who are entering the market in our neck of the BC Southern Interior. That being said, the BCREA concluded their report with a definitive statement:
“But any dip in prices won’t last long, with a strong rebound predicted for 2024.“
We encourage buyers to heed the BCREA’s caveat to sales/price drops in the Okanagan. Get pre-approved on a mortgage today and start house hunting this March/April. Stake your real estate claim before prices and sales rise. Plus you’ll have a home in the Okanagan in time for the summer season – what could be better!?