Mixed signals for Kelowna Real Estate in 2013
Other
Positive Signals
1. Alberta Oil Prices -while down slightly still providing solid employment and buyers for Kelowna Real Estate
2. Positive cash flow is made easier by low interest rates which will continue for the foreseeable future.
3. USA new home starts up 15% from 2011 provides employment for BC forestry workers.
4. Many Canadian have bought homes or condos in the US Sunbelt at low foreclosure prices. Those low prices mean that they have money left to buy in Kelowna.They can earn money in Alberta, winter in Phoenix, and summer in Kelowna.
5. Alberta real estate sales and prices are strong creating a good pool of buyers for Kelowna.
Negative Signals
1. Canadian consumer debt is at record highs, this means many people will stop consuming to pay of debts.
2. USA Fiscal Cliff brings economic uncertainty.
3. Inflation in Canada at the lowest rate in 3 years
4. Real estate prices in Vancouver are softening. 15-20% of Kelowna buyers come from Vancouver so this will affect our market to some degree.
How will this all play out?
Governments will print money and try to bring about a gradual recovery with inflation in the 2-3% target level. Interest rates will remain low for the near future. This will be good for government deficit reduction and real estate prices.
Real Estate is the only investment that someone else buys for you.
Pick a house or condo on the lakeshore or on a golf course and let your tenant pay for it. Nice folks, those tenants!