I attended an event this week featuring a presentation by the BC Real Estate Association for the latest, most detailed economic updates available in British Columbia. Chief Economist Cameron Muir gave a very thorough and informative overview of how we can anticipate the economics to continue to impact the Okanagan Real Estate Market.
– This economy continues to be appropriately labelled as the “Fits & Starts” recovery! The economy will not be firing on all cylinders again for some years, and in the meantime, expect to encounter ongoing fits and starts as the economy does progress forward and away from the near collapse of late 2008 and into 2009.
– Interest Rates MAY have slight increases POSSIBLY next summer, but in the meantime, expect that in the very short term we most likely will see further DECREASE in longer term mortgage rates! Mainly due to some nagging headwinds that are still in place.
– The de leveraging and loss of confidence has pretty much run its course through the economy, and (again in fits and starts) the economy is making progress into positive territory once again.
– In terms of macro investment climate, the financial money markets are still rather difficult to operate in: Even with these record low rates (which make the cost of borrowing VERY CHEAP), there are significant challenges in the availability! In other words, yes its cheap to borrow, but it is tough to get at because of the challenging availability.
– The global recession is slow to end, and as mentioned, there are continued headwinds in place, contributing to the fits and starts we see splashed across the headlines constantly!
– The economist pointed out that he expects prices to have flattened into the next year and a half but are currently firming and have in fact firmed somewhat, mostly due to the increased and increasing demand from buyers.
– The retiring BOOMER demographic is definitely going to be shifting to moving toward the limited number of temperate climates in Canada, which bodes well for the Okanagan in general, and small towns in the Okanagan in particular.
– Looking in the rear view mirror, the interprovincial migration into the Okanagan is down about 25% since 2008 and that includes the retiring boomer demographic mentioned above.
I will continue to provide more updates on the market, check back again soon. Thank you for your interest, Patrick Murphy
250 486 2529
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