Amberhill, townhomes in Kettle Valley by the Mission Group, will be hot sellers this spring.

Top 10 Reasons Why…

This Spring might be the BEST time to make a move in 2010.

Still wondering when the best time to sell or buy a home this year is?  It’s now!  Here are our Top 10 reasons why this spring is the BEST time to  make a move in the Kelowna real estate market.

  1. Avoid the HST- If you’ve been humming and hawing over that ‘squeaky clean, never been lived in’ brand new home (or townhouse or condo), you will want to make your move this spring because effective in July 1st, 2010, you will pay more tax on it if the price is over $525K.   We have been seen a lot of activity in the new home market and expect it to increase in the next few month with this deadline approaching.  So, if you want a NEW home, now is definitely time to take action.
  2. Changes in Mortgage Regulations effective April 19th, 2010 – While the steps being taken by the feds to minimize the allowable risk that borrowers can manage are generally seen as a good thing, if you are one of those people potentially affected (first time home buyers, investors, lower income households), talk to your mortgage broker to see how these changes might affect you and your ability to buy the home you want.  It may be worthwhile to get pre-approved and make an offer on the home you want today, rather than waiting.
  3. Interest Rates- They are at historic lows.  Will they change?  There is a lot of speculation but nobody really knows.   All I can say is waiting for them to change will not benefit you as you will be too late once they go up.
  4. Things are Finally Moving.  Good for sellers, good for buyers.  If you have a home to sell before you can buy, you now have a much better chance of doing that than you did a year ago.  Find yourself a Kelowna realtor (I know a good one), get a market analysis done and get it listed.  If you suspect your current home falls within the $350- $550K price range, you’re golden.  This is the real estate hot zone right now in Kelowna.
  5. Real Estate Prices- Ok, everyone likes to complain about how high the prices are in Kelowna, but let’s face it, they are still relatively low compared to a few years ago (avg price of single family projected down 6.7% from last year, down 2% from 2008).  Unlike the Lower Mainland where housing prices are again rapidly increasing in high demand neighbourhoods, we have not seen the same trending here.  But the market is moving so once supply starts to level off, housing prices will likely creep up again.
  6. Inventory- There is still a great selection of Kelowna homes for sale, particularly if you are looking for high end real estate.  You will get a good deal right now.  A lot of homes over $800K have been on the market for many months and have motivated sellers.   Kelowna Townhomes on the other hand are slim pickin’s- the price point is good and they are a great fit for young families.  So be mindful that if a townhome is what you are looking for, especially new, make a move now… because of HST and new mortgage regulations, they will be hot sellers this spring.
  7. Building Costs– So, you are in your second or third home already- or maybe just getting into your first- and you know you want build.  Get out and start looking at  lots, my friend.  There are some fantastic ones available in great neighbourhoods like Kettle Valley and Black Mountain among others.   Right now, building costs are still low due to the lull in new home starts.  Unlike 2 or 3 years ago, the cost of lumber is also very low, the better quality trades are more accessible and want to work so have made the adjustments necessary to make building a very affordable option right now.
  8. The Market is Changing- Yes the stars have aligned to make this Spring a great time to buy.   But this little nirvana may not last long…  trending suggests that house prices are indeed on a slow rise and demand is building (some local realtors have even noted the return of the dreaded ‘bidding wars).  I was attending an open house on a TUESDAY (yes, Tuesday in the middle of the day no less!) and I had 5 serious groups through looking to purchase a home.  If you are out there and you see something you really like, go see it again, and again if necessary.  But don’t wait to see what else is out there.  If you LOVE it, move on it.
  9. Summer is coming- Not sure if you’ve noticed but our summers are pretty excellent in this town.  There is a reason spring is a busy time for Kelowna realtors.  Buy now, move and get it over with so you can enjoy all the Okanagan summers have to offer.  More listings tend to spring up at this time so the inventory should be at its best in the next 4-8 weeks.
  10. Spring is a great time for a Fresh Start.  With all this talk of taxes and mortgage rates and markets, sometimes we need to just step back and remember, this isn’t just about real estate… this is about the rest of your life.   Buying a new home and making a move is often a great catalyst for ‘de-cluttering’ one’s life in many ways… it’s the perfect opportunity for a fresh approach in 2010!

For a FRESH approach to Real Estate in Kelowna, please contact me or anyone on my team.  We offer complimentary consultations and market evaluations and would be happy to assist you buy or sell your home with passion, creativity and results.

Additional Resources that might be helpful

HST implications on Real Esate in BC

Federal changes to mortage regulations

CMHC Housing Market Outlook:  Kelowna 2010

BC Real Estate Assn Market Update, Feb. 2010