Affording Kelowna?
Selling and buying a home can be a daunting task, anytime we take on a new listing we immediately are thinking who is the potential buyer for the property and plan our marketing around that buyer.
Affordability in Kelowna, seems to always be a hot topic, especially how we have seen home prices increase over the last year, but what does it look like in terms of how much a home buyer can purchase?
To help put in perspective of what the income distribution in Kelowna looks like, I am using a graph created by Mortgage Sandbox that shows the percentage of the population that can afford to purchase homes at various price points. This graph isn’t perfect for every situation, it is not taking into account out of town buyers (44% of buyers in 2022), cash buyers (2022 was around 37% of the buyers) and it also is assuming a purchase of a strata property (using fees of $0.42/sq ft), which will not be applicable for people buying a single family home, it is just an idea of where income distribution is in Kelowna.
If your home needs some work, it's important to weigh the costs of doing those repairs yourself versus the potential benefits of selling and letting the new owner choose their own changes. While some buyers may be willing to purchase a home that needs work, others may not be able to or may simply not want to take on that task. This can eliminate a certain amount of the market share, so it's important to consider the impact of any needed repairs on your potential buyer pool. It's also worth noting that affordability continues to be a concern, as inflationary pressures erode the value of today's dollar. Wage increases often lag behind inflation, which can also impact a buyer's ability to qualify for a mortgage. Any changes in employment or income can also affect a buyer's ability to secure financing, so it's important to be aware of these factors when considering the sale of your home. In short, selling a home requires careful consideration of a range of factors, from local market conditions, to the needs and financial situations of potential buyers. By taking the time to understand these factors (we are here to help you understand ;)), you can increase your chances of a successful sale and ensure that you get the best possible value for your property. -Mark and Maddie
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