Okanagan Home Prices Dropping

HIGHLIGHTS The impact of Coronavirus on the Okanagan Valley will likely be very significant. The luxury vacation home market in the region will be affected by the further weakening of the Alberta economy and a travel ban. Buyer interest was high in the first three months of 2020, but the market will slow down now that open houses have been suspended. The Coronavirus may have an outsized impact on property prices in Penticton. Roughly 16% of Metro Vancouver residents are over the age of 65. The ratio climbs to over 24% in Vernon and 29% percent of residents in Penticton. Short-term rentals in the Okanagan (now vacant due to Coronavirus) may be converted to long-term apartment rentals or sold, and this could add unexpected supply to the market.

Fortunately for home buyers, prices have been relatively flat between May 2018 and March 2020. A wait-and-see approach has allowed them to save more for a down payment with no risk of being priced out of the market. Given the current recession and pandemic, sellers may want to push ahead and sell during the pandemic. There is no guarantee that home prices will regain the current highs any time soon because a Coronavirus induced recession may inflict long-term economic damage. Coronavirus is now the primary source of uncertainty for home values.

Okanagan Valley Forecast

Including Kelowna, Vernon, and Penticton

Okanagan Valley Real Estate Forecast