2024 is finally here! If you are looking to buy or sell houses for sale Kelowna BC, you’re in the right place. Homes in this region of the Okanagan are undergoing significant changes as a result of changes in provincial and municipal legislation and new market dynamics. The end of 2023 was left on an uncertain note with housing sales down and interest rates high. Investors in the region were also hit with new legislation surrounding short-term rentals like those supported on Airbnb and Vrbo.
In this article, we will be providing a comprehensive market overview that outlines some of the key elements that will influence Kelowna real estate this year. Follow along below to learn more about what to expect as a buyer or seller in 2024!
New Legislation That Could Impact Houses for Sale Kelowna BC
Residents of Kelowna could potentially face a 4.7% increase in property taxes in 2024. According to an article by Global News, the intended hike includes a one-percent public safety levy approved in 2023. The City of Kelowna notes that this additional one percent will go towards the RCMP, bylaw, police, and community safety services. If the raise in property taxes is approved, residents in Kelowna could see a notable jump in the cost of homeownership. Staying informed about this topic is critical as you work towards achieving your 2024 real estate goals.
Another legislative change that will impact the real estate market in Kelowna, is the new rules surrounding short-term rentals (STRs). The provincial government announced near the end of 2023 that new STR regulations would be unrolled targeting platforms like Airbnb and Vrbo. With approximately 28,000 active STRs in BC, the aim is to create more long-term housing options given the current climate for real estate in Canada. In 2022, the number of active STRs was 20% lower than what it is today. The new legislation includes measures like greater fines, stricter operation rules, and the creation of a provincial registry. However, the most notable new rule, is that STRs in BC municipalities with a population of more than 10,000 residents will only be allowed to operate out of their principal residence. The way that this regulatory environment unfolds will certainly impact Kelowna residents and investors alike.
Other Factors Influencing the Kelowna Real Estate Market
Other factors impacting the Kelowna real estate market include increased supply and lacklustre demand. In the aftermath of the post-pandemic housing boom, Kelowna saw a major jump in new listings. This has resulted in several challenges for prospective sellers. In the fourth quarter of 2023, sales were down causing numerous listings to go stale. Last year, October sales stats were down an astonishing 14% year-over-year. This also contributed to a 3% drop in the average sales price for a home. Despite these circumstances, experts are hopeful that demand will pick back up in the coming months. For now, buyers have a unique opportunity to enter the market amidst easing conditions.
New construction in Kelowna slowed down compared to the activity seen in 2022. However, the overall level of new construction remains relatively strong. The Canada Mortgage and Housing Corporation (CMHC) documented a 33% annual decrease in new construction in September of 2023. As we settle into the new year, the impacts observed in the last quarter of the previous year may translate to reduced housing inventory. This, in turn, could result in a more balanced market in the weeks to come.
Finally, the most influential factor to pay mind to this year is the Bank of Canada’s (BOC) interest rate changes. Throughout the rate hikes, British Columbian cities have mirrored movements from the BOC. This year, Royal LePage released a report anticipating that the BOC’s key lending rate would remain steady throughout the first half of 2024. However, they also noted that by late summer or early autumn, modest cuts could be made. Staying informed about the latest from the BOC will be essential in achieving your real estate goals in the new year!
Contact us Today!
Are you ready to get started with this year’s real estate goals? At HilbertCrick we have the skills and experience to ensure you stay on track with your 2024 property buying/selling resolutions! For more information about buying/selling houses for sale in Kelowna BC, contact us today! We’d be happy to help you find an amazing home that accommodates you and your family’s needs! Be sure to check out our social media for the latest updates and more. And, stay tuned to our blog for more real estate-related information. We look forward to working with you in 2024!