Massive Potential For Penticton Real Estate

July 14, 2015

Penticton BCPenticton real estate is hot right now. If you go for a drive you won’t see alot of real estate signs up. Lets face it Penticton is the most beautiful place in Canada that you can live in and most of us that own homes here don’t want to sell them. In spite of the fact that it isn’t exactly a buyers market here in Penticton property values are still reasonable. I wouldn’t expect it to stay so reasonably priced for long as people from out of town are quick to see what a tremendous value they can get for their money. I predict that out of town buyers will continue to keep driving up the Penticton real estate market. It makes sense. The real estate market in Vancouver is out of control. The average person can no longer afford to own their own home in Vancouver, and those that do own in Vancouver can easily sell their property for a sum that would go much, much farther in Penticton real estate – Not only Penticton, but the entire South Okanagan.

I will leave Kelowna out of it as it is a different market. Kelowna has a lot of reasonably priced real estate, but alot of it is still priced much higher than in Penticton area. If you want a lot of bang for your real estate buck then Penticton, Summerland, Naramata, Kaleden, Okanagan Falls, Oliver, and Osoyoos is where it is at. You can even find cheaper real estate in Cawston and Keremeos, but these locations are going to take some time before they really go up significantly in value. Stick with Penticton and the South Okanagan and you can surely expect the price of real estate to rise in the near future.

Now real estate in the Okanagan has risen significantly in the past. The past 20 years have seen real estate prices nearly triple. Then when the United States had its housing crisis things slowed down a little bit here in the Okanagan, but it took a while for us to feel the negative effects of the Poor American Economy and overall it wasn’t very significant. During the U.S. recession construction in the Okanagan slowed down alot and real estate prices dropped slightly, but since then construction has bounced back and real estate prices are stable. Some people feel that we are in a real estate bubble here in Canada. I disagree. I think we are at a peak and that real estate prices will likely remain flat for a while. I highly doubt prices will drop. That is very unlikely. Historically real estate prices always go up. Yes their are fluctiations but in the long term you can always expect real estate to go up. Also Canada has a very strong economy that thrives on its own without outside influences having much of an effect. Case in point was the U.S. housing crisis; This hardly effected the Canadian economy or real estate prices. Other factors that are keeping the Southern Okanagans Real Estate strong is the growing real estate market in Vancouver and the influx of buyers from Alberta.

Penticton has always been a playground for Albertans. As a kid in Penticton I remember that once summer hit the population doubled (or more). Most of the visitors where from Alberta which you could tell because most of the license plates in Penticton where Alberta plates. There were actually more Alberta license plates than BC license plates during the summers in those days. Some things have changed, we don’t have such a massive infux of visitors during the summers from Alberta like we did back in the day, but there are plenty of people from Alberta that are purchasing property here, and not just for summer homes, but to live here permantely. As I am sure you know oil drives the economy in Alberta. Those that work in the oil industry are often flown into remote work camps, so they don’t have to live in Alberta to work there. Those that own homes in Alberta can sell them and get more value for their money here in Penticton and area. This is quite common. Often after selling their home in Alberta (Same applies to Vancouver) they can purchase a bigger home here in Penticton and still have a money left over to pursue other ventures such as starting a small business (or just kick back and enjoy life in Penticton). If your typical buyer does keep working in Alberta Westjet has made it easy for them to get back and forth by its recent offering of flights to Calgary directly from Penticton.

South Okanagan Events Centre

South Okanagan Events Centre

Tourism has always been something that the economy in Penticton has relied on. It is gorgeous here being surrounded by beaches and lakes at both ends of the city and mountain views all around. Over the last few years Penticton has gone from the land of orchards to one of vineyards adding even more for tourists to enjoy. Five years ago I don’t think their was a single company offering wine tours, now we have several. The Okanagan is now a major wine producing area. That is not all – the rules surrounding distilleries just changed recently and now you will see them popping up all over offering spirits unique to the Okanagan. Just recently BC laws allowed liquor tasting at farmers markets. This was great
news microbrewries and those that love them. Speaking of brewries we have our share of them in the Okanagan, the most recent being Bad Tattoo (Who also has awesome pizza!). Here in Penticton we also have the new South Okanagan Events Center which has been bringing in some great entertainment and also provides a venue for the hockey school. I could keep going on, the short of it is Penticton has a lot to offer; It is a great place visit and an even better “Place To Stay Forever”.

One more tourism related factor that will in my opinion drive the price of real estate in Penticton and area upwards in the near future is sites such as Airbnb. Airbnb is causing quite the stir and has been credited as one factor that is driving up real estate prices world wide. More closely to home Vancouver real estate has become very popular due to Airbnb, which is a site that helps home owners rent out their home to tourists. Renting out your home is a smart way to pay off your mortgage and build up your assets. Renting out your home to to tourists allows you to charge more and make much more money. Using Airbnb you could rent out your home, or even just a room, by the day if you want. This has
become so popular in large cities world wide that the rental pool for residents has begun to dry up creating problems for locals looking for an affordable place to live. This has led to a crack down by government officials in many cities on home owners who have esentially turned their home into a bed and breakfast or “Hotels”. Still I think it is an excellent idea, but my recommendation would be to follow municipal laws in regard to this. You may be allowed to rent out your home for so many weeks out of the year by law. If you can you might as well take advantage of it as it can be extremely finacially viable.

Penticton Dock on Okanagan LakeEven if you never plan on renting out your home, property ownership is the best investment you can ever make. After all you need a place to live. You might as well be building an asset rather than paying off someone elses. Okanagan real estate has a huge amount of potential. If you don’t own your own home then your should make buying one a priority. If you already own your own home then congratulations you are on the right track, you might even be in a position to now purchase an investment property. If you are serious about your future and you want to build up your net worth then real estate is by the number one best way to do it.

 

Looking for a mortgage or real estate in the Okanagan? Contact Scott Bowland:

Phone: 250-493-6040
Mobile: 250-462-2274
Fax: 1-866-534-9145

#101-301 Main Street, Penticton, British Columbia, V2A 5B7

 

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