Now that we are one month into the new year, it is becoming more and more evident that the real estate market is in for another record-breaking year. To kick off January, many homeowners received a brand new assessment of their home. The vast majority of people were shocked at how high the value of their home jumped. Furthermore, the most unsuspecting areas like Spallumcheen saw some of the highest price increases in the Thompson Okanagan region. However, this is not to say that Penticton real estate has gotten more affordable.
In this article, we will be going through a full breakdown of the Canadian real estate market. We will provide insight on what’s happening in other provinces, how Penticton will be affected, and why the real estate market is experiencing such extreme lows in the housing stock. Follow along below for more information.
What’s Happening in the Canadian Real Estate Market Now?
Currently, Canada is experiencing some of the lowest inventory levels on record. Provinces across the country are having a difficult time finding housing for their citizens. According to a RE/MAX report, 37 out of 38 regions are expected to remain in a seller’s market for the duration of 2022. This is causing extreme price growth throughout Canadian provinces.
British Columbia and Ontario are seeing some of the highest influxes in housing costs. Sellers are driving up prices by exercising their power over buyers. Many homeowners looking to cash out on their property are holding out for the highest price. Thus, creating a lack of affordable housing for most Canadians.
Millennials and first-time buyers are struggling to purchase any kind of real estate. New families and low-income individuals are having trouble seeking a home for a reasonable price. In turn, people are relocating to different cities and provinces for a more palatable cost of living. Alberta is one of the few provinces that remains somewhat affordable. However, the masses of people moving there for cheaper housing could stand to affect the affordability in the coming months or even weeks.
There has been an average of a 9.2% increase in price in homes across the country. Moreover, Canada is expecting some 411,000 new immigrants in 2022. Old and new citizens are challenged with finding a place to live in Canada’s 2-year record-breaking real estate market.
What is the Penticton Real Estate Market Like?
Penticton real estate has followed the trends of Canada’s market predictions. Many families and retirees have their eye on Penticton as the place to live. Much like the rest of the country, Penticton is experiencing a heated seller’s market. Real estate is hard to come by unless you’re willing to pay a hefty sum.
Tip: A seller’s market indicates that there are fewer homes available for purchase than buyers. More buyers give the sellers the upper hand. This is because they have the power to negotiate their price and drive the cost high. In sum, less inventory + lots of buyers = seller’s market
Contrastively, a buyers market signifies that there are lots of homes available and few buyers to purchase them. This allows buyers to negotiate a lower price and provides more opportunities to get a good deal. So, lots of inventory + few buyers = buyers market
If you’re looking to sell your home in Penticton, you could stand to make a healthy profit off of your investment. However, buyers should be wary of steep costs and minimal options. This will likely be the case for the coming months.
Why Is This Happening?
There are various reasons as to why the real estate market is so upside down in Canada. One of which, has to do with the Baby Boomers who are now reaching retirement—or should be. The Baby Boomers are a generation born between 1946-1964. During their time in Canada, the Boomers have accumulated a large portion of the real estate in the country. While normally, retirees would be looking to downsize, the Boomers are choosing to stay in their large, single-family homes.
COVID-19 has caused a looming fear for the older generations to move into care homes and retirement facilities. Many of them are scared of contracting COVID-19, due to the high risk of fatality amongst their age group. Canada saw some of the highest care home death rates since the beginning of the pandemic.
Instead, retiring aged folk are choosing to remain at home for safety reasons and because of the increasing demand for space.
Buy & Sell Penticton Real Estate Now!
2022 has been a wild start to the Canadian real estate market! If you have any questions about a property in Penticton or the current market conditions, be sure to reach out to us! We are excited to get your year started right with a new home. Penticton real estate is going fast so it’s important to get a jump on the market. Don’t hesitate to contact us with any concerns or inquiries about real estate in Penticton. We look forward to working with you in the coming months.