Quote:
Originally Posted by Jonrox
I'll agree that it's weird in Kelowna.
- There's a disproportianate number of higher-end and million dollar homes given the population size.
- There are very few (if any) areas where you can build a home for less than $500,000. Thus, the only option in the $300-350,000 range are older homes.
- This results in the price of these homes being inflated as there's a gap in houses that actually deserve to be priced between $300-400,000.
- A lot of money is spent here, but not earned here, thus Kelowna being named one of the least affordable cities to live in.
I think for higher-end homes your dollar goes about as far in Calgary as it does in Kelowna. But you get much less for your money on less expensive homes here than in Calgary.
But I do think it has bottomed out in Kelowna. A lot of the people who have their homes for sale have the financial ability to wait out the market until prices improve, so don't feel pressured to move their homes quickly.
Plus, you're likely not going to get interest rates like we currently have a few years from now. Even if we haven't quite hit the bottom and prices fall a bit further, you're going to end up paying more in interest costs on your mortgage (assuming you will have a mortgage). You'll need prices to fall a lot further to make up the difference.
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I'm down in Osoyoos, and this is a really tricky market. Income stats mean nothing in a town where the average age is 57. You really have to fish to find out who's trying to move into the old folks home and which people are just trying to make fast money.
But it's a nice area, land is in short supply and there is a large looming demographic of retirees to be who made out well in the last boom, would love to hit the golf course in February, and like the fact that you only have to shovel snow 5 times a year if it's a harsh winter.