Lack of jobs & affordable house, pushing some to leave

[fluffy]

Exactly. And with the general slow-down in new construction it wouldn't surprise me a bit to find out that many have seen a drop in income compared to the dramatic rise in property values. It seems more and more that those growing up in the Okanagan will be faced with the reality of having to leave the area in order to make enough money to buy back in. My general feeling is that rank-and-file wages in the Okanagan have never been in line with property values here, but it would be interesting to see some actual statistics on the subject.

[twobits]

Strange how some people think 'lack of jobs and affordable housing' is something new here.

Strange how some make statements without backing it up. Are you going to prove that homes were as expensive in relations to income during the 80's compared to 2000-2010?

Static, I don't know why you are challenging him for stats. Everyone is aware of the well known fact of what has happened to the price of housing relative to income. It is a North American if not world wide phenom and not just the Okanagan. That however does not take away from his statement that lack of jobs and affordable housing is something new here. All it says is that these statments were being made then and as a long time resident I would agree. It certainly doesn't say it's not worse today.

[fluffy]

Affordable housing was abundant in the 80's.

If memory serves, the 80's was a time of considerable upheaval in the housing market. Mortgage rates in excess of 15 percent had people walking away from homes they had recently purchased. Houses were being sold for a dollar just so people could get out of mortgages. The reality of the game today is that property prices have skyrocketed, and with that comes higher rents. The only solution I can see is more and more government subsidized housing, and that is a minefield too.

[Static]

Static, I don't know why you are challenging him for stats.

I am just bugging homeownertoo, I stalk and taunt him/her. Although I would like to see some stats because I beleive real estate was substantially cheaper when compared to incomes in the 80's compared to today.

[Static]

Affordable housing was abundant in the 80's.

If memory serves, the 80's was a time of considerable upheaval in the housing market. Mortgage rates in excess of 15 percent had people walking away from homes they had recently purchased. Houses were being sold for a dollar just so people could get out of mortgages. The reality of the game today is that property prices have skyrocketed, and with that comes higher rents. The only solution I can see is more and more government subsidized housing, and that is a minefield too.

My rent has fallen over the past two years. There is an oversupply of rentals now that will lead to softening rents.

[Homeownertoo]

Affordable housing was abundant in the 80's.

If memory serves, the 80's was a time of considerable upheaval in the housing market. Mortgage rates in excess of 15 percent had people walking away from homes they had recently purchased. Houses were being sold for a dollar just so people could get out of mortgages. The reality of the game today is that property prices have skyrocketed, and with that comes higher rents. The only solution I can see is more and more government subsidized housing, and that is a minefield too.

I don't know where Static got that quote from, certainly not from this forum, but true to form he has taken it completely out of context.

Your memory serves you right. Early in that decade, very high mortgage rates were pushing some people to bankruptcy. Rental vacancy rates were virtually zero a, and for maybe a couple of years few people could afford buy because of the high rates. By mid-decade, prices and rates were down and housing had become much more affordable. Of course, there were also fewer jobs here by then, as memories of empty storefronts along Bernard attest.

[Bagotricks]

My parents bought a 4 bedroom house in Westbank ( just below Mission Hills ), with lakeview and double lot, for 157,000 dollars in 1996. That is affordable - and still is. Both had jobs, and the unemployment rate in Kelowna was 9.5% in 1996.

10 years later they sold the house for 560,000 dollars. They did some renovations, but when they sold it they joked I would not be able to buy a house until they died or I married a rich girl.

[twobits]

My parents bought a 4 bedroom house in Westbank ( just below Mission Hills ), with lakeview and double lot, for 157,000 dollars in 1996. That is affordable - and still is. Both had jobs, and the unemployment rate in Kelowna was 9.5% in 1996.

10 years later they sold the house for 560,000 dollars. They did some renovations, but when they sold it they joked I would not be able to buy a house until they died or I married a rich girl.

What your parents joked is unfortunately the truth for many until there is a generational transfer of wealth. Just coming up with a 10% downpayment thru after tax savings is a significant hurdle to overcome. Of those able to buy, many have received "early inheritances" for the downy from ma and pa. Many argue home ownership is inferior to renting right now from an investment point of view. I would disagree. I see the next bump up in prices starting in about five years when the earliest baby boomers start pushing up daisies in numbers. The generational wealth transfer is going to be massive, will last 10 - 15 yrs and unlike any seen in history.

[Static]

Many argue home ownership is inferior to renting right now from an investment point of view. I would disagree. I see the next bump up in prices starting in about five years when the earliest baby boomers start pushing up daisies in numbers. The generational wealth transfer is going to be massive, will last 10 - 15 yrs and unlike any seen in history.

Good luck with that

[twobits]

Many argue home ownership is inferior to renting right now from an investment point of view. I would disagree. I see the next bump up in prices starting in about five years when the earliest baby boomers start pushing up daisies in numbers. The generational wealth transfer is going to be massive, will last 10 - 15 yrs and unlike any seen in history.

Good luck with that

And I suppose you think that accumulated wealth will be buried or creamated with them brainiac? I've read your self taught version of economics. Keynes is rolling over in his grave. In real dollars it is the richest generation in history per capita, and will not likely ever be equalled.

[Static]

Many argue home ownership is inferior to renting right now from an investment point of view. I would disagree. I see the next bump up in prices starting in about five years when the earliest baby boomers start pushing up daisies in numbers. The generational wealth transfer is going to be massive, will last 10 - 15 yrs and unlike any seen in history.

Good luck with that

And I suppose you think that accumulated wealth will be buried or creamated with them brainiac? I've read your self taught version of economics. Keynes is rolling over in his grave. In real dollars it is the richest generation in history per capita, and will not likely ever be equalled.

I hope we can one day make amends and . Try to catch me Yeller! I'm not afraid of you

[nepal]

There are actually some good housing deals in the Penticton area these days, for those who look for them. Also, some of the surrounding communities have good value that I haven't seen in years.

[twobits]

I spoke to the developer of Sendaro Canyon a cpl of months ago. Moderate sized single family home lot, equiv to what you would find on Braid st or Van Horne, fully serviced with lane access, and zoned to allow an inlaw suite staritng at 149k. That has not been seen in Penticton for 20 years and long overdue. This puts owning a house for many on the map of options again rather than just condo's or townhouses. Actually competative with them with room for a sandbox, swing set and badminton net. Imagine that.....kids able to play in their own yard....what a strange concept.

[Corneliousrooster]

I spoke to the developer of Sendaro Canyon a cpl of months ago. Moderate sized single family home lot, equiv to what you would find on Braid st or Van Horne, fully serviced with lane access, and zoned to allow an inlaw suite staritng at 149k. That has not been seen in Penticton for 20 years and long overdue. This puts owning a house for many on the map of options again rather than just condo's or townhouses. Actually competative with them with room for a sandbox, swing set and badminton net. Imagine that.....kids able to play in their own yard....what a strange concept.

So all the condo owners that want to step up into a house can take the loss on their condo value and trade up to 149K lot and put their new to them/used trailer on it ????

Until the housing market becomes affordable and starts moving again, nobody gives a crap about lots (which is why you will see the big price drops there first). Unless money is coming in from outside relocating which is not likely(being a good chunk of our good paying jobs have left the area). Most retirees are not looking for lots to build on.

keep watching - I bet we see those lot prices drop at a larger%/faster rate than the average house prices

people are not moving "up" they are moving away

[nepal]

For affordable homes, perhaps a return to smaller homes on smallish lots. Under 1000sf on main floor for level-entry ranchers (optional finished bsmt) and under 700sf on main floor for 2-sty and houses with developed attics. Newer versions of the old houses east of IGA and the new development north of Rona come to mind. Make them well-designed, but small and with quality finishing/design. These would give new home owners and retired people, affordable, manageable, quality homes, with their own-four-walls. They could even have carports that could be converted to garages later. Lot price $140,000 and (hse at $160/sfx900=$144,000) = $284,000 plus tax, profit and fees. Plant lots of deciduous trees for aesthetics and cooling.