Buying or Selling? 10 Year North Okanagan Recap Part 2
The real estate market is always changing and the current scenario is no exception. By June 2022, the market began to shift with an increase in inventory and a decrease in home sales compared to the previous two years. And by December 2022, the market had fully shifted, giving buyers some advantage with almost 8 months of supply. The slowdown can be attributed to various factors, including increasing interest rates, high property prices and a limited number of buyers for the homes that are on the market.
Interest rates play an important component of a housing market’s health. When rates rise, it becomes more expensive for potential buyers to borrow money from banks. As a result, many people lose some buying power making it difficult to purchase homes in higher priced markets. In addition, home prices have started to outpace what potential buyers are willing to spend on properties.
The outlook for 2023 remains somewhat uncertain as experts struggle over whether real estate sales will pick back up or remain stagnant going forward. Home sellers should keep close tabs on how interest rates affect borrowing costs while potential buyers should watch out for favorable deals that come up during this uncertain time period. There will still be opportunities but both buyers & sellers looking at entering into the market should do plenty of research before diving in, head first, in order to ensure success going forward into 2023 and beyond.
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