Troubling Trickle-Down Effects

The arrival of spring has boosted real estate sales in the Okanagan, with the average house price flat-lining or declining in some areas.

The Okanagan Mainline Real Estate Board says there was 545 residential sales from Revelstoke to Peachland in March, up from the 407 in February, but down 13% from March of last year.

Board president Marv Beer says government moves to dampen housing demand like higher interest rates, is reducing the supply of affordable housing, forcing many potential home buyers to remain renters.

“There are troubling trickle-down effects with these one-sided government policies, especially for young families trying to put a roof over their heads,” maintains Beer.
“If millennials, currently the largest first-time home buying group, can’t buy, they will likely stay renting longer, spelling bad news for rental markets already facing plenty of competition for few vacancies. If housing supply stays low, those who still qualify under the new stricter mortgage rules may find
increased competition for scarce housing, often a catalyst that drives up pricing.”