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What's next in the market?

Blog by Mike Ingraham & Jaclyn Kinrade | September 29th, 2014

The housing market in the Okanagan is cyclical with five to seven years for each cycle. Since the last peak in the spring of 2008, this year's accelerated activity indicates we are now heading into a new Up cycle. Typically there's a period of stabilization of up to two years where prices hold their own before they start rising again. 

If this is the case, here's what the next 12 months should bring:
1) increased demand for single-family dwellings under $600,000 with multiple offers becoming more common (six offers were written on a rancher in Penticton in late September - price $319,900);
2) more sales of single-family dwellings between $600,000 and $1 million - a price category that had virtually stalled;
3) increased activity on acreages, vineyards, orchards and Interface properties - a category that had completely stalled;
4) shoring up of prices for condos and townhouses - and strong absorbtion of high-end condos.
5) cheaper lots will continue to be absorbed, forcing buyers to consider more expensive lots that are still relatively easy to build on.

Game changer:
The new Okanagan Correctional Center in Oliver, creating 240 permanent correctional staff positions. Housing demand, likely beginning in Spring 2016, will be strong in Okanagan Falls, Oliver, Heritage Hills/Kaleden in that order.