The Kelowna Buyers’ Market in 2021
Kelowna is British Columbia’s new hot-spot for home-buyers. With an unprecedented number of sales to kick off the spring season in March, and many people relocating from all across the country to enjoy the hillside views and life on the water, preparing buyers for the market is essential. Here is everything you need to know about buying a home in Kelowna in this new era.
What Can A Buyer Expect when buying a home in Kelowna
Spring is in full swing in Kelowna BC, and a busy season in Real Estate awaits, with eager buyers looking to settle into their new homes in the Okanagan Valley. As a result of homeowners and renters re-prioritizing housing and living standards, Kelowna is already seeing an unprecedented influx in sales.
Many buyers are looking to abandon big city living to enjoy the space, the views, and the small town life that Kelowna and the Okanagan Valley have to offer. It is easy to see why the interest exists; Kelowna is an attractive destination for tourists with desirable climate, lakeside location, plenty of wineries and both summer and winter sports to enjoy in this historical centre in southern British Columbia, so why not make it your place to call home?
In any market, when it comes to finding a home that suits your needs, the process can feel time consuming and overwhelming. There is a lot of work to be done to secure the home of your dreams and with the growing demand in Kelowna for single family and townhomes, being prepared is your best bet. Here is what you need to know as a Kelowna-bound buyer in 2021.
Low Inventory or High Demand?
With how competitive the market is today, many buyers are experiencing tremendous frustration. The high demand for single family homes, condos, and townhouses without the inventory to support it is leading to a “buyer’s fatigue”. While it may seem like there is a low inventory, the true story is that the demand for homes in Kelowna is the highest it’s been at in over ten years.
Although homes are being sold quickly, it is important to note that not every home is getting multiple offers or seeing bidding wars. It is because of dynamic situations like this that makes it all the more important to approach buying a house with a certified REALTOR ® who has experience navigating the market. Being prepared will have you putting your best foot forward, and working with your agent will take some of the stress off of you and your family when buying in these market conditions.
As Kelowna becomes more and more recognized as a top choice for homeowners and first time buyers looking to relocate or settle down, the trend of multi-unit properties is increasing as well. Multi-units or multifamily properties are an excellent way to invest in Real Estate. Two to four unit properties are a great way for investors to make a safe purchase that could have tenants paying down their own mortgage, especially in an owner-occupied situation, all the while building towards greater financial freedom. When buying a multi-unit property, owners can decide to have as much or as little involvement as they please; They can choose to be an active landlord on the premises, or contract out a company to fill vacancies as they come. With families looking to indulge fully in the Okanagan Valley lifestyle, and AirBnB’s as a popular solution for travellers looking to avoid hotel stays, no matter how you market your multifamily property, retaining occupants for a stable investment can be done easily.
First Time Home-Buyers
While experienced home-buyers may have more capital to use when relocating to Kelowna, first time home-buyers might feel that they are being priced out of the market. It is important to know that there are programs offered in British Columbia to support first time home buyers. Qualified first time home buyers who are applying to this program can receive land transfer tax exemptions, allowing them to budget more money for the downpayment and less for these administrative fees. For more information on benefits you can receive as a first-time buyer, talk to your agent today.
Pre-emptive and Bully Offers
You may have heard of bully-offers when looking to buy a house, and though some people stray from allowing these types of offers, it is a strategy that just might work with today’s market conditions. Presenting a seller with a pre-emptive or bully offer is essentially a way of getting your offer reviewed before its official list date. This tactic allows a buyer to potentially beat out the competition who are waiting for the presentation date before making their move. While these types of offers can give some people an unfair advantage, many who have dealt with disheartening losses, multiple offer situations, or for buyers that are just eager to purchase the specific property, resorting to this strategy and presenting the seller with an offer that has few to no conditions, is usually above asking price, with a pre-approval for financing or cash offers just might be the solution they are looking for.
Not every seller will entertain pre-emptive offers, and buyers have to be sure they want to take the risk that it presents. When submitting this type of offer without conditions or pre-inspections, you may end up taking a financial loss that you were not expecting. It is important to know the pros and cons of this tactic and proceed cautiously with the help of your REALTOR ® in any situation.
Come Prepared, Leave Happy.
Lastly, the best thing any buyer can do in the market we are seeing today is to come prepared. Do your research. By this, we mean have a list of wants and needs, desired neighbourhoods, amenities you are looking for, bedrooms, bathrooms, and anything else that may affect your house hunt. Additionally, ensure to get pre-approval from a lender, as this will play a big role in your quest to buy a home. For any questions, concerns, or for help moving forward, call your Royal LePage agent today. We know that buying a house is a big thing, and we are here to help you navigate this journey to find and enjoy your future home in Kelowna, B.C.
For more helpful articles, visit the Royal LePage Kelowna Blog.