They are predicting that the housing market will continue towards moderation - citing increased interest rates and deteriorating affordability as some of the key reasons.
To read the full report please view http://www.rbc.com/economics/market/pdf/houseupdate.pdf.
How will this affect the Real Estate Market in Kelowna?
I agree that as interest rates rise, we will see buying a home much less affordable, for those needing to borrow, and this will, in particular, affect first time buyers, who have formed the largest percentage of buyers in the Central Okanagan this year.
I do believe this will be balanced out by an increase in demand for investment properties and second homes, particularly from buyers in Alberta, where stronger than average economic growth is forecast for the next year.
On this basis, we should continue to see house prices fairly stable, and I do not see any reason currently for this to change.
However, if we do see a 'spike' in interest rates, or a rise in unemployment, that would seriously affect consumer confidence, and that would then affect demand growth and have a negative affect house prices.
If you have any questions about the current Kelowna Real Estate market or about buying or selling your home, please do not hesitate to contact me.
Kind Regards
Trish Cenci
Telephone 250 864 1707
