The Central Okanagan’s residential real estate market statistics reveal some interesting insights.
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
Bank of Canada has decisively slashed its key rate by 25 basis points, marking the first drop since the onset of the pandemic. Following a series of interest rate hikes initiated in March 2022 in response to higher-than-anticipated inflation figures in the aftermath of pandemic-related economic support and disruptions in global supply chains, this decision holds significant importance.
This move brings the policy rate down to 4.75 percent, a decline from the 5 percent rate that persisted since July of the previous year.
In light of these developments, it is crucial to note that numerous financial institutions and economists are foreseeing a potential trend of descending interest rates kicking off around mid-2024. Projections range from a 0.25 percent reduction to an overall decrease of 1.00 percent by the year’s end.
The Bank of Canada’s forthcoming announcement on June 5th, 2024 is poised to stand as a momentous occasion for assessing the trajectory of interest rates.
Given these shifts, BMO’s Real Financial Progress Index has reported that 72 percent of prospective homebuyers are awaiting interest rate cuts before entering the property market. Consequently, mortgage brokers are currently managing open files, eagerly anticipating potential buyers.
If banks lower their prime rate, borrowers with variable-rate mortgages will experience an immediate impact, just like they’ve experienced the consequences of increasing rates. People with a fixed-rate mortgage will not experience any changes in their payments until it’s time to renew their loans. Fixed-mortgage rates are influenced by changes in the bond market, which, although also impacted by Bank of Canada rate decisions, are based on overall investor confidence. The rate cut had already been largely factored into the market.
This change underscores the opportune conditions for property listings and purchases.
CTV News: Bank of Canada cuts key rate for first time in more than 4 years
CTV News: What the Bank of Canada rate cut means for mortgages, consumer loans, and investments
The Globe and Mail: Potential Bank of Canada rate cut would jolt slow housing market, experts say
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
New tax proposals have been announced for British Columbia. Key highlights include an increase in the inclusion rate for Capital Gains, a speculation tax effective from January 2024, and a flipping tax effective from January 2025.
Various strategies can be employed such as making use of the capital gains reserve or incorporating the rental property business. The BC home flipping tax applies to residential properties owned for less than two years, with rates at 20% for sales within 365 days, and will decline to zero between 366 and 730 days. The new flipped property rule considers a gain from the disposition of residential property in Canada after 2022 that was owned for less than 365 days to be fully taxable as business income regardless of intention.
To minimize capital gains tax on rental properties, there are several options such as making a gift or inherited property your principal residence, putting earnings in a tax shelter, or making use of the capital gains reserve. If planning to flip a home, be aware of the new tax rules effective from January 2023.
Exemption for Principal Residences
Make a Gift or Inherited Property Your Principal Residence
Incorporate Your Rental Property Business
Put Your Earnings in a Tax Shelter
Make Use of the Capital Gains Reserve
Capital Losses Offset
Carry Forward Your Losses
Starting January 1, 2024, the existing Speculation and Vacancy Tax Act will undergo minor changes. Registered leases in the Land Title Office will now be responsible for paying the tax, instead of the property owners.
Effective January 1, 2025, a proposed BC home flipping tax will apply to income from the sale of a property, including presale contracts, in British Columbia, if the property was owned for less than 730 days. This is separate from federal property flipping rules and is not harmonized or administered with the federal or B.C. income tax. The tax is imposed under the Residential Property (Short-Term Holding) Profit Tax Act.
The BC home flipping tax applies to residential properties owned for less than two years and will have rates at 20% for sales within 365 days, and will decline to zero between 366 and 730 days.
Starting January 2023, the Principal Residence Exemption will no longer apply if you plan to flip a home while owning it for less than 365 days. Speak to a professional accountant if this situation may apply to you.
The BC home flipping tax applies to net taxable income from the sale of taxable property that was owned for less than 730 days. Your net taxable income is calculated by multiplying your taxable income by your tax rate, less the primary residence deduction.
Under the new rule, a gain from the disposition of a residential property in Canada after 2022, owned for less than 365 days, is considered fully taxable as business income regardless of intention.
To minimize capital gains tax in Canada, designate the property as your principal residence for each year you own it. The number of years that you can claim the principal residence exemption is limited to four years.
For more information:
Government of BC – BC Home Flipping Tax
Government of BC – Speculation and Vacancy Tax Act
Government of Canada – Changes in Use of Your Property
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
The Canadian government aims to introduce more affordable housing by changing zoning rules in municipalities to allow for multi-unit housing options. The Province of British Columbia will soon introduce legislation to create more small-scale, multi-unit housing options.
Starting on May 1, 2024, the Province will enforce a provincial principal residence requirement in some areas of the province. This will limit short-term rentals to the host’s principal residence and one secondary suite or accessory dwelling unit on the same property.
In January 2025, the government will require municipalities to change their zoning rules to offer more affordable multi-unit housing options, such as townhomes, multiplexes, and laneway houses. The Province will introduce new legislation to provide more small-scale, multi-unit housing options for people and to fix outdated zoning rules. This will help build more homes faster.
The Province will make limited exemptions to certain properties, such as hotels, motels, timeshare properties, lodges, student accommodations, and strata guest suites. There will also be exemptions for certain communities, such as farmland, ski and resort regions, and Trust areas under the Islands Trust Act.
The crackdown on Airbnb rentals will be aimed at operators of multiple investment units, rather than homeowners who have a primary residence with a suite to rent out. The principal residence requirement will not take effect until May 1, 2024.
Residents of British Columbia will only be allowed to lease their primary residence plus one additional secondary suite for short-term rentals when new regulations are enacted. This includes rental listings on various online platforms like Airbnb, VRBO, Expedia, and FlipKey.
Province of British Columbia – New zoning, amenities, and tenant protections support people and create livable communities
Province of British Columbia – More small-scale, multi-unit homes coming to B.C., zoning barriers removed
City of Kelowna – Short-term rentals
Reach out, we are here to help and answer any questions you may have!
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
The real estate industry is constantly evolving, and 2024 is shaping up to be a year of significant change. To stay competitive, agents need to be aware of the following five key trends: digitalization, changing buyer preferences, suburban markets, data analysis, and sustainability. Real estate websites offer easy-to-buy products to help agents drive engagement and turn prospects into leads.
The Rise of Digitalization
Kelowna, a rapidly growing city in Canada, has witnessed a surge in the selling price of townhouses. At the end of 2023, the benchmark selling price of a typical townhouse in Kelowna was $731,600, which is a bit higher than the previous year-end price of $726,000. However, it’s still $97,400 less than the record-high price of $829,000 set in May 2022.
According to the Community Trends report, Kelowna has grown faster than other fast-growing cities like Surrey. Between 2016 and 2021, the population of Kelowna increased by 13.5%, which is higher than the growth rate of 7.6% in British Columbia and 5.2% in Canada.
Kelowna is becoming one of Canada’s fastest-growing cities due to its excellent cuisine, pleasant weather, and easy access to nature and outdoor activities.
Some 492,083 residential properties are forecast to trade hands via Canadian MLS® Systems in 2024, a 10.5% increase from 2023. This is mostly unchanged from CREA’s previous forecast. The national average home price is forecast to climb 4.9% on an annual basis to $710,468 in 2024.
Interested in moving to Kelowna, download our Relocation Guide, or thinking of selling check out our Listing Package.
If you live in the Okanagan, there is a high probability that you own a boat. Tired of towing it every time you are looking to go on the water? There are permanent and temporary boat moorage options in Kelowna and the area.
Boating on Lake Okanagan is a popular pastime, but having to hook up the boat and wait in line at the boat launch can take time away from your day on the water. There are several boat moorage options in Kelowna and the area, and they offer a heck of convenience.
Beautiful Downtown Kelowna Marina
In the heart of Kelowna’s downtown core, this is a great catch-all for general boating and watersport enthusiasts. There are 68 moorage slips available for long or short-term rental (seasonal all the way down to hourly boat moorage options in Kelowna), along with full-service fuelling facilities and convenient shops. Additionally, this is your access to party boat charters plus boat (and even jet ski) rentals. It’s a one-stop shop, and you can walk back to your downtown hotel in minutes. If you’re feeling like making a real plunge and have some patience for a waitlist, you can explore the Kelowna Yacht Club. Located just minutes away for a premium Kelowna boat storage/moorage experience.
Located directly on the lake next door to Hotel Eldorado and Manteo Resort in Kelowna’s sought-after Lower Mission, this a very unique opportunity to maximize the enjoyment of your boating life in Kelowna. Just download their app, and they will fuel up your boat and have it in the water ready to go shortly thereafter. Once you’re finished for the day simply toss your keys to the attendance and head home, knowing your boat is safe and sound. Boat storage couldn’t be easier or more convenient outside of a slip at a marina. Luckily, Aqua Marine Valet is much, much cheaper. Bonus: They will completely winterize and wrap your boat for off-season storage at their large lakeside facility, where they also have full fueling and detailing services.
Breathtaking Views from Marina
For those with larger vessels, this marina in West Kelowna is the ideal option. Shelter Bay has 450 boat moorage slips which can accommodate boats up to 60 feet in length. They also benefit from significantly deeper water than most facilities on the Eastern shores of Lake Okanagan. This is ideal for larger sailboats. Amenities include mechanical servicing and parts, detailing, wrapping, a full watersport shop, and so on. No stone is left unturned.
As a community built around amazing lake experiences, Kelowna’s locals and tourists have lots of great options for aquatic sports. Boat storage and maintenance are a huge part of the picture. Boating might not be the least expensive hobby, but at least you won’t get caught double-bogeying the 18th hole.
Is your Kelowna home for sale? It is very important to ensure your Kelowna home is in the best shape to set your sale up for success. Let’s face it, first impressions are everything in life. So when your potential buyer walks into your home, your home must be in the best shape it can be! The team at Vrecko Real Estate Group has 3 great ways how to prepare your Kelowna home for sale.
The first thing your potential buyer does not want to see in their future Kelowna home is clutter. Clutter in your home could be hiding the key selling features of your Kelowna home that your potential buyers may not see in the 15 minutes they are viewing your home. Think of it this way, you have 15-30 minutes to sell your home to its potential buyer, is it in the best shape? If you need some tips on how to declutter your home, check out 7 tips on how to declutter your home.
The best decision you can make when getting your Kelowna home ready to sell is to hire a staging company. You would be shocked as to how they can make your home look like it came out of a magazine. They come into your home with a fresh approach and can easily take your home up to the next level. We work with some of the best staging companies in town who we highly recommend!
Fragrances for your Kelowna HomeThe first thing people do when they walk into your home is breathe. When you are looking at a Kelowna home for sale you use most of your senses. One of the most important senses you will use is your sense of smell. Don’t use the old-fashioned sprays, they will not only temporarily mask the smell but most of the time sprays are very strong and can only make it smell worse. Try using essential oils or a stick scent diffuser. Either would work and gradually make your home smell amazing!
These are just some tips on how to prepare your Kelowna home for sale. There are plenty of little things you can do to ensure your Kelowna home is ready to sell. For more expert advice on how to prepare your Kelowna home contact the team at Vrecko Real Estate Group. One of our knowledgeable real estate agents would love to chat, call 1-778-760-2860 today!
As the show starts to fly and Christmas decorations go up, I always get the question:
“Should I list my home in the winter or wait for the spring?”
Here are reasons why it’s a good idea to consider listing your home in the winter.
The active inventory of homes for sale in the Okanagan is historically lower in the winter months. There is usually a 20% decrease in active listings from November to March. 
Many sellers in the Okagnan choose to wait to put their homes on the market because they believe that their homes will show better in the spring and summer months. And while that may be true, it’s all relative. So while other homeowners are waiting, why don’t you a head start? Listing your home in the winter months will give you the advantage of having fewer homes to compete with than in the spring. Buyers are still active all year round.
Homebuyers looking to buy a home in the winter months tend to be more serious buyers. Every month of the year, homebuyers are looking to move. While making the move in the winter may not be ideal, some buyers need to secure a home whether it be for work or life situations. There are typically fewer showings on homes for sale in the Okanagan in the winter months, the buyers coming through need (or really want) to buy.
Longer closingBuyers who are buying in the winter months may be wanting to secure a property, they typically want to move when the show has cleared.
“In my years of experience, homes that sell in the winter months usually have a longer closing and possession date compared to the spring/summer season.” Says Tracey Vrecko with the Vrecko Real Estate Group
This longer closing date will give sellers more time to plan and arrange their big move. It’s even more beneficial if that seller is looking to buy a home. This will give the homeowner more time to find their next property.
If those 3 reasons don’t convince you that it’s a good time to be listing your home in the winter here are a few others:
So if you are thinking of listing in the spring, get ahead of your competition and list your home this winter. You have a better chance to secure a sale before the rush of new listings hitting the market.
Call your award-winning team at Vrecko Real Estate for any questions about listing your home in the winter!
First-Time Home Buyer Incentive 
First-Time Home Buyers’ (FTHB) tax credit
Home Buyers’ Plan
GST/HST New Housing RebateCouple earning $120,000
$480,000 total purchase
-$24,000 down payment
-$48,000 matched by CMHC
=$408,000 mortgage
Based on a couple earning $120,000 annually, we’ve compiled a look at some properties you can get in major housing markets in Canada under the 500 000 price range.
In Kelowna: currently houses/townhouses listed in Rutland & WEC, under 2300 sqft, 2-5 beds & 2-3 baths.
Single family-66
Strata-367
In Toronto: No houses listed but one-bedroom condos are available, typically 600-1,000 sq feet. Condos have more rooms and additional bathrooms as you get away from the city core. There is almost no supply below $300,000.
In Vancouver: No houses listed but one-bedroom condos are available, typically 600-1,000 sq feet. More rooms and additional bathrooms as you get away from the city core.
In Calgary: You can find listings for two-bedroom bungalow houses downtown, along with two-bedroom condos over 900 square feet.
In Winnipeg: Limited supply at this price range. Detached houses are available, however, with two-plus stories and multiple rooms. Large condos over 1,000 sq feet are available closer to a $300,00 price point.
To qualify, you must:
Other notes:
(https://www.cbc.ca/news/business/budget-cmhc-home-buyers-1.5063204)
(https://www.lowestrates.ca/blog/homes/cmhc-first-time-home-buyer-incentive-fthbi-guide)
Spring is just around the corner and if you are thinking of selling, this is the time you want to start preparing your home for sale in Kelowna.
This can seem like a daunting task, especially if you lived in your home for quite some time. But it doesn’t need to be! Think of it as pre-packing. So leave yourself enough time so you are not feeling the pressure. Here is a timeline you can follow to pace yourself and ensure it’s all done on time.
Declutter and Pre-pack
Pick up some boxes from U-haul or Home Depot and get packing. This pre-packing stage will save you time when you are ready to move. This stage of preparing your home for sale will allow you to keep only things you want to bring to your new home.
As you sort through items in your home, sort in piles of what you want to keep, things you would like to sell, and things you want to give to charity.
The items you would like to keep but don’t need for the sale of the home can be boxed up and stored in the garage or storage unit. These items could be:
While your home might feel a little depersonalized to you, a new buyer needs to see their belongings and their lives in the home.
To lighten up rooms, if there are excess or large furniture pieces, move them into storage if you are keeping them, and if not, sell or pass them on to a local charity. Less is more!
Paint and touch-ups
Touch up all the wear and tear on the home. The easiest way to do this is to paint. Patch up any nicks and dings in the walls and either touch up with the same color or if it hasn’t been painted in quite some time or is a bolder color, take the opportunity to repaint the home in a neutral tone. It’s amazing what a fresh coat of paint will do, so it’s worth the time when preparing your home for sale.
Don’t forget the baseboards! Use a bright white for baseboards and trim. Over the years, the vacuum cleaner does a number on the baseboards and they need to look bright white.
Other things to consider looking at:
Loose door knobs
Burnt-out light bulbs
Weather stripping on doors
Any items that have broken or worn out over the years
It’s crunch time! But don’t let that get you nervous, all the really hard work is behind you. Now is the time to focus on being ready for photos. Keep in mind when preparing your home for sale, professional photography will happen about a week to 10 days prior to going live on the MLS.
Get outdoors
It’s time to focus on the outside. Touch up paint, and fix anything that needs tending to. Give some love to the garden beds with a fresh load of mulch or cedar chips. Good curb appeal leaves a good first impression. Do a fresh mow to the lawn just before photos.
Cleanliness is next to Godliness
Back inside, pull out the bucket, gloves, and cleaning materials, and get prepared for a deep clean. For photos, ensure all surfaces are clean and dust-free. If you are running out of time, there are great cleaning companies in town that can take this off your hands.
And don’t forget:
Air intake vents
Bathroom fans
Blinds and ledges
Cleaning carpets
It’s a good idea to call a window cleaning company to clean the windows inside and out. Most will do power washing as well to get rid of dust, debris, and cobwebs that accumulate over the winter.
Ok, you are almost there. You have worked hard preparing your home for sale and it’s about to pay off. Photos are done, the sign is up and you are ready to get your home on the MLS.
You may not recognize your home, but it is now ready for a new homeowner.
Extra tips:
For photos and showings, get rid of any evidence of pets
Avoid any strong smells when you have a showing
Move cars and toys out of the driveway
A few nice touches:
Get some fresh flowers
Use white bedding and towels for a fresh natural look
Find a playlist with soft music
Download our photoshoot prep guide and showing guide for extra tools when preparing your home for sale.
The Vrecko Real Estate Group offers a variety of services to help in preparing your home for sale. Reach out to one of the professional real estate agents to discuss your needs and they will be happy to help you through the process.
REALTOR®, REALTORS®, and the REALTOR® logo are certification marks that are owned by REALTOR® Canada Inc. and licensed exclusively to The Canadian Real Estate Association (CREA). These certification marks identify real estate professionals who are members of CREA and who must abide by CREA’s By-Laws, Rules and the REALTOR® Code. The MLS® trademark and the MLS® logo are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.