December Home Sales
The Okanagan Mainline Real Estate Board says there were 156 residential sales last month in the Central Okanagan region, up from 131 December of 2016, and prices were 12 percent higher.
"Higher average price can often reflect the composition of product sold over the course of the month," says OMREB President Tanis Read, adding that consumers were "possibly looking to lock in purchases before new mortgage rules take effect in January."
Effective January 1, new federal mortgage tightening rules require borrowers with a down payment of 20% or more to face a stress test when renewing or refinancing a mortgage to prove they can cope with the risk of higher interest rates.
"The seventh round of rule tightening by Canada’s federal financial regulator since 2008, these new rules impact both those seeking a mortgage as well as those refinancing their mortgage," notes Read, adding "the impact may be that those now in the market for a home may have to settle for a less expensive home or wait and save up for a larger down payment." Read points out that lenders won’t have to apply the stress test to clients who are renewing an existing mortgage.
As for who's buying, the Real Estate Board says 54 percent of real estate purchases were by people already living in the area, 21 percent are from other areas of BC, 8 and a half percent from Alberta and 3 percent from another country.
The Okanagan Mainline Real Estate Board reports for 3 markets within the region: the Central Okanagan Zone (Peachland to Lake Country), the North Zone (Predator Ridge to Enderby) and the Shuswap- Revelstoke Zone (Salmon Arm to Revelstoke).
For detailed statistics specific to each regions GO HERE