April was awesome, seriously awesome!
We were busy here at Nyrose & Associates, and so was the Kelowna real estate market!
To really understand current market activity I like to look at historical numbers to provide a basis for what’s really happening now. After all, for most homeowners, their real estate purchase is their primary residence. And, for most homeowners, they aren’t moving every month or every year, but rather every 4, 5, 6 or 7 years.
Since most people take a five year mortgage, I like to look at 4 and 5 year numbers as generally, as a mortgage nears maturity, the interest in moving rises.So, has your real estate investment paid off?
Here’s a quick recap from people who purchased April 2015 and what April 2019 was like:
Average median Condo purchase in 2015 for $227,000
Sold median condo 2019 for $373,750
Average median townhome purchased in 2015 for $329,900
Sold median townhome in 2019 for $481,500
Average median single family purchased in 2015 for $479,00
Sold median single family in 2019 for $646,875
If you are looking to enter the real estate market in 2019 and see the above 4 year trend, don’t worry! Sure, prices have risen and Kelowna real estate is more expensive; but renting will never provide you a return on your investment. And, as long as you are buying real estate as your primary home, you’re paying for your OWN roof over over head. You might as well invest in yourself than a rental.
Imagine renting for 4 years at today’s rough rental of 2,000 for a single family home. (This is a low estimate) that’s 97,000 spent on rent without paying down your own mortgage as well. So as long as you don’t have a sudden reason to sell in the future it’s not as risky as people buying for purely investment