The south Okanagan recorded more than one billion dollars in real estate transactions last year as home sales and prices continue to surge.
A total of $1.19 billion worth of property changed hands in the region in 2017 compared to $1.12 billion in 2016, a seven per cent increase.
In Penticton, more than $544 million in real estate was bought and sold in 2017, a 16 per cent increase over the year prior.
It’s also getting more expensive to buy a home in the city with price increases in the double digits.
The average sale price of a single-family detached Penticton home was $545,000 last year. That’s up 19.4 per cent from 2016.
The South Okanagan Real Estate Board says more Vancouverites are taking advantage of their hot real estate market and cashing out to invest in the Okanagan.
“They think our prices are terrific and they’re starting to come here and they’re starting to purchase,” said board past president Pamela Hanson.
Meanwhile, the number of units sold for all types of housing has increased by 5 per cent meaning overall inventory is up.
Hanson says while its good news for buyers, it’s nowhere near the inventory available a decade ago.
“We are still down in listings from other years by 25 per cent and so, when someone comes into our city for instance, there’s only been about eight houses I could show them between the four and five hundred thousand dollar range,” she said.
Looking forward, new mortgage rules that kicked in January 1st could have an impact on home sales this year.
It basically means even some borrowers with 20 per cent down or more have to now qualify at a higher interest rate.
As a result, prospective homebuyers may be able to borrow less money for their purchase than they would have before the rule change.
Hanson says it might cool the market.
“It will be a hickup, it’s coming at a slower period,” Hanson said.
But the pace is expected to pick up again this spring with strong demand continuing to make it a sellers’ market.