When first looking into recent real estate news in Kelowna, it may be tricky as a seller to decide if now is the time to put your home on the market.
After skyrocketing to record sales and prices over the last two years, the real estate market has levelled out somewhat in recent months. Regardless of this, however, the market is still flush with homeowners looking to sell.
January 2018 saw a 27 percent jump in sales volume and a 45 percent increase in new listings since last year. Despite the fact that house sales are down from last year, actual house prices have increased 20 percent as of February.
The reason for reduced interest from buyers could be the new rules put in place by the government regarding mortgages. Homeowners now must qualify for a rate that is two percent higher than that of the posted or five-year rate.
Additionally, foreign buyer tax increase combined with speculation tax has introduced a bit of uncertainty. But despite these new regulations and taxes, a strong economic backbone, better affordability than Vancouver and a growing population make Kelowna home to a steady real estate market.
Elton Ash, Regional Executive Vice President at RE/MAX of Western Canada, recognizes that it's easy for homeowners to get caught up in the moment.
“The most important thing to consider when deciding to sell is your lifestyle choice,” Ash notes. “The decision to move should never be based on hype and market price.”
He emphasizes that a seller’s personal financial situation should be just as (if not more) important as the state of the market itself.
"Real estate is a long-term investment. It should never be viewed as quick return," Ash explains. “You’re buying a house that becomes your home that you raise your family or enjoy your life in.”
According to Ash, there are three important factors to consider when selling a home: personal timing, preparation of the property and choice of realtor.
He recommends a homeowner interview at least three real estate agents before going forward in order for homeowners to ensure that they’ll be working with someone who’s a good fit.
“What you’re looking for is someone who you feel [is] going to give you the advice and direction that you need in selling your home,” Ash says. “You’re hiring someone to fulfill a position — that’s really the best way to look at it.”
He says that free online tools can also make it easier for homeowners to explore the possibility of selling.
The company’s B.C. Home Estimate Tool is one example. After entering their address into the tool, homeowners can get an accurate and up-to-date estimate of their property's value within seconds. The tool generates an estimate of a home's fair market value based on several factors, including historical home price trends, recently sold comparable homes and tax assessments in the neighbourhood.
The results of the tool provide a sense of the property value itself, as well as the approximate value range in the neighbourhood. It also gives users access to other data points that could prove useful when marketing their home, such as walkability scores and proximity to local schools.
“We as an organization feel very strongly that we should be empowering the customer,” Ash says. “We want to provide as much information as we can. We’re in the do-it-yourself society, and it’s all about empowerment and knowledge.”
If homeowners have any questions about the tool, their home’s value or whether now is a good time to sell, Ash encourages them to contact a RE/MAX real estate agent for more information.
