Realtors are now required to obtain more information from Buyers and Sellers when buying and selling property. These new guidelines come from the government's Fintrac division, aimed at reducing money laundering and proceeds of crime through buying and selling real estate. As of June 23rd, 2008, when you buy or sell a home you will need to provide your realtor with copies of your personal identification information such as drivers license, health care card, etc.

The government has announced that as of October they will no longer be insuring zero down mortgages or mortgage terms longer that 35 years. The lowest downpayment allowable will be 5%. This comes as no surprise as Canadian officials are trying to prevent a mortgage crisis like the one that is overwhelming the U.S .

So what does this mean for the South Okanagan Market?

The baby steps of the real estate market slow down have been set in motion. More listings mean better selection of homes for buyers and stiffer competition for sellers. Toronto, Edmonton and Calgary have had real estate prices drop up to 20% in recent months. However British Columbia is still holding strong with an estimated appreciation rate for 2008 of 6% according to the Canadian Real Estate Association. So what can we expect in the Okanagan with all this? We expect South Okanagan prices to rise slightly this year and then flatten, the times of doubling your home value may be gone. These are signs that we are shifting from a sellers market to a more balanced market.

The Canadian housing market in 2007 set a number of MLS sales records, and the re-sale housing market is expected to remain at newar record sales levels in 2008, accoding to The Canadian Real Estate Association. Annual residential MLS sales were up 7.6% from 2006. This was the largest annual sales growth since 2002.

Three economic factors keep Canada's housing market on a different track from the US. One is consumer confidence, two is employment and three is affordable interest rates. The Bank of Canada is expected to cut it's rates again in March.

As the holiday season approaches less people are spending time looking at new homes and more time christmas shopping. We have now entered the usual winter slowdown which usually lasts until springtime. However buyers and sellers should not give up. This is the time when sellers are usually more motivated and flexible with prices, on the flip side sellers have a better chance of selling as there is alot less competition on the market. There has been a lot of talk about the real estate bubble “bursting”, as we see the US prices spiraling downwards.