Recent Real Estate Updates for Penticton and the Surrounding Area that New Buyers Need to Know About
Spring Break 2022 is in the books, and for many households in the BC Southern Interior it’s time to get back to #lifegoals, with homeownership being one of them. Traditionally, the season is prime for real estate, offering buyers enough time to get pre-approved on a mortgage, find their dream property, and move-in in time to enjoy the summer in the best place in BC. But does this spring in particular represent a good time to buy a home in Penticton and in the Southern Okanagan Valley? Let’s have a look at current real estate news to find out.
Rates Set to Rise (but what does it really mean?)
In March we reported on the most recent Bank of Canada announcement, noting that the Bank was raising their Policy rate from .25% to .5%. As you may or may not know, any move to increase the Policy rate increases variable mortgage rates (all else equal). In that same article we predicted that the Bank would keep increasing the Policy rate through the remainder of 2022, which includes this spring. It seems as if experts agree, as this week Canada’s Big 5 banks (BMO, CIBC, RBC, Scotia, and TD) unanimously concurred that the Bank of Canada would raise the rate yet again – this time to 1%. That announcement drops this coming April 13. Consider it all but done and dusted.
As a result, variable rates will rise as we approach the summer. But by no means should you be scared away from getting a mortgage. Variable rates remain very favorable when considering the pattern over the last decade. For instance, at press, BMO is marketing a variable rate that starts at 2.15 percent while RBC is listing theirs at 2.2 percent. Keep in mind that these are their advertised Penticton (and area) mortgage rates. When you work with a professional mortgage broker you will get access to lower unadvertised rates along with first-time-buyer (as applicable) incentive programs which will reduce your down-payment requirements and more. Contact Carloni Mortgage Brokers at 250.493.9111 today to qualify.
What about fixed mortgage rates being advertised in the Okanagan Valley? Unlike variable rates which are tethered to the Bank of Canada Policy Rate, fixed rates respond to the Bank’s activity in the bond market. They too are predicted to rise as we approach the summer. But like with variable options, 5-year fixed rates remain quite low when compared the last decade (and then some). At press, CIBC is marketing their 5-year closed fixed rate at 3.89 percent (example). However, if you connect to Carloni Mortgage Brokers (call 250.493.9111) you will also get access to lower (than advertised) fixed mortgage rates. Get pre-approved right away to lock yourself in.
Rising Values = Strong Investment Prospect
As indicated by most everyone’s home assessments at the beginning of the year, the values of BC Southern Interior homes have gone up. Notice how we say “value” and not “price”? While semantically interchangeable when it comes to real estate, we want you to focus more on the value aspect, because in the long run that is what really matters. Yes, the buy-in is higher than what it was a year or two ago, but look at it this way – your investment (a home purchase) is safe. Homes in Penticton and the BC Southern Interior are a HOT commodity. When you buy a home today, you will see a healthy boost in equity in just a few short months. In five or ten years from now, you will have generated some serious wealth. Experts don’t see a slow down of desirable home values occurring in Penticton any time in the foreseeable future. How favorable that ROI is depends solely on how fast you act. Act now, and you’ll reap greater rewards than if you wait another season. Call 250.493.9111 to get the ball rolling.
Availability of Desirable Homes
Another consistent theme in Penticton real estate news, is the fact that the inventory of houses is getting leaner by the month. It’s true, and is a big part of what is driving up the value of homes. However, there is still a big opportunity to find your dream property.
“The market is enjoying the sunshine as much as the rest of us are, we’re starting to see more homes coming on market.” (VP for the Association of Interior Realtors, April 7 2022 via CastaNet)
What the AIR VP is referring to, is new construction. Look no further than the properties coming up along Penticton’s Riverside Drive as an example. Throughout the BC Southern Interior there are new construction developments reaching fruition and opening up inventory in a big way. We’re talking brand new townhouses, duplexes, and other multi-residential properties. You may have had your sight’s on a single detached house, but have you considered all of the benefits of a condo mortgage in the Valley? The inventory of desirable homes is there, you just need to know where to look. Carloni Mortgage Brokers can help by increasing your buying power through lower mortgage rates, and access to the aforementioned new buyer incentive programs.
Get ready for the summer by entering the hottest real estate market in Canada this spring. Contact Carloni Mortgage Brokers today to get pre-approved.
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