The Sizzling Hot Real Estate Market: Memoirs of a Real Estate Broker

Real Estate

My oh my…
To say that our Real Estate Sales Associates, Brokers and Staff are literally run off their feet
is not an exaggeration these days. I know that you have heard it in the news, but it is truly something
to behold up close and personal as it were.

 

 

What was an over-heated market in 2020 is looking closer to a bonfire from what we can tell here on the ground…. and it is only the first week of March with Q2 upon the horizon which is typically the busiest 3 months of the entire year. It’s kind of like Boxing Day in on steroids but stretched out over a few months because there is more geography to cover.

 

 

Unfortunately, there are no signs of the market slowing anytime soon as the home buyers who are working from home and need more space hit the streets, along with retirees needing to downsize, and first-time home buyers who have been saving and waiting for awhile now… all collide in a search of that perfect place to call home.

 

 

Cheerful family moving into a new house

 

 

As an industry professional, I did select the word “unfortunately” knowingly and with aforethought.
I did so because too much of anything is not necessarily a good thing. Yes, our Seller clients are ecstatic when they receive 5-10 offers, many of which are over list price, until they too become Buyers and face the same challenges of their counterparts.

 

 

Another product of an over-heated market is that it attracts investors, adding yet another party to the buying pool when the pool is kind of over-crowded already.
No offense investors! We love you!
And these buyers are by their very nature – in it to win it!

 

 

 

 

They are not going to live in their property but rather buy and hold, buy and rent, or buy and sell – and we know it will be for a profit….
because after all…they are in it to win it…
You’ve got it!

 

 

Additionally, it does not look like the Mounties are coming any time soon to save the day as the Bank of Canada and other policy makers seem to agree… the economy is too fragile to sustain an Interest Rate hike at this time as many are still unemployed or only back at work with reduced hours.

 

 

Continued low interest rates are the gasoline on the fire as low interest rates translate to increased borrowing power from buyers.

 

 

Consider the increased borrowing power historically/artificially that low interest rates create:

 

 

Mortgage of $500,000
2.24% – 5 Year Fixed Fantastic Rate – Payments $2,175.61
4.5% – Payments $2,767
5.6% – 10 Year Rate – Payments $3,081

 

 

That is almost $1,000 more borrowing power per month this buyer has now that the rates are low
versus traditonally normal rates! And if you have seen a few rate increases over your lifetime, 5.6%
is not that high.

 

 

Real estate agent or broker concept. House sale offering. Hand holding building and keys. Vector illustration in cartoon style

 

 

This buyer is now in the pool.
We would all prefer the buyer take that extra $1000 per month and go with bi-weekly payments, pay off their mortgage faster or even save the money.

 

 

This looks unlikely because this buyer is without a home or needs to downsize, so they will take that
ADDITIONAL BUYING POWER AND PUT IT TO WORK FOR THEM
to secure a property by paying more for it than they might normally because they can now afford to do so.

 

 

Have I mentioned how crowded the pool is?

 

 

 

 

Deborah Moore
Broker Owner
Mother of Dragons

 

Search

About

We are a growing company with a focus on the future. Our mission is to change the way people think about widgets and have fun while doing it. Read More

We were connected with Re/Max Penticton Realty through friends of ours and were not disappointed. We decided to make the move to Penticton last winter and were in contact with our agent, Phil, immediately. He and his team were very helpful every step of the way. Would highly recommend Re/Max Penticton Realty to anyone!!
Eric M.
Eric M.
Larry V.
Larry V.
Christine R.
Christine R.
Shae B
Shae B
V T.
V T.
Very happy with our house purchase! We used Phil Fox as our realtor and he helped us find a good quality home, in an excellent location, under a short timeline, during a crazy time in the real estate market. Would recommend to anyone looking for a responsive and caring realtor.
Jennifer H.
Jennifer H.
Always above and beyond and always such a pleasure to work with. Highly recommend.
Shannon E.
Shannon E.
Kelsey C
Kelsey C
T R.
T R.
We are from out of the area so I relied upon a trusted realtor to help me choose a realtor in the Penticton area, for the sale of a home on behalf of a family estate. We have put Karrie and Paul Grewal through every challenge imaginable, and each and every time, I come away stunned by their knowledge, their resourcefulness, their willingness to help in ways that are so beyond the call, and equally their patience and good cheer with my endless requests. To say they're accommodating is a gross understatement. Do yourself a favor - list with Karrie and Paul Grewal. You will be so glad you did!
Rick R.
Rick R.
I was very pleased by the expertise provided by Steve Thompson and his team in the sale of my property--thanks!
John S.
John S.
I had a great experience working with Lana. Very professional and helpful. I felt that she had my best interest in mind so I trusted her completely through the process of buying a house.
manatala123
manatala123
Agent was extremely helpful through the whole process
Darren C.
Darren C.
John and Natasha, I am so grateful to you both. John you went above and beyond again. You made it happen. Your wisdom in decision making and deep insight into the market and procurement to ensure your clients goals are true talents. One can tell you’ve been practicing for a long time and always learning. Paralleling those skills with your transparent and caring nature and work ethic makes you’re team special. I am so pleased with another experience in excellent and effortless management of this process. Thank you team Green!
Kevin D.
Kevin D.
Well first we started with Eileen who gave us a real good overview of the different cities in the South Okanogan. Then, to look in Penticton, we dealt with Karrie Grewal. Very pleasant and informative, she told us about all the 55 plus places in Penticton and their characteristics' - this was very helpful in our search.She narrowed it down so that we only got listings we were interested in. Karrie and her husband showed us a couple of places. Even though they were very busy they met our restrictive timelines. She helped us with an offer on one place which got too competitive. Then on the way home we got a listing we liked and so her and her husband did a 'facetime' tour of the location. She helped us put in a great offer that saved us money and we got the place.On possession day she met us there but the keys wouldn't work because someone locked the screen door so she called around and resolved the issue within an hour.Later we got a beautiful basket of wine and goodies. Thank you team, especially you Karrie.
Clarence M.
Clarence M.
We had an excellent experience , being out of province, buying a home through Lana Pontello. She made our move go so smoothly and helped us with so many recommendations.
marie k
marie k
We found Rhonda Van Der Veer and she was super responsive and helpful in giving us information about the Penticton area. We were able to find a condo and close with relative ease. If you are looking for a realtor I would highly recommend Rhonda.
Janice H.
Janice H.
Diane Fox was outstanding, as usual. She has been our realtor for buying and selling two homes over the last two years.Very caring and intelligent. Is always responsive to any of our concerns and questions.
Cats K.
Cats K.
We have enjoyed the professional real estate services of Ernie Sheridan at Re/Max Penticton for not one but two homes in the past. Ernie and staff are just wonderful to work with...always concerned that our wishes and needs in both buying and selling were met and ensuring that we were always kept up to date on details. Because Penticton has been Ernie's home for many years, he has all the knowledge and experience that you need to move within the Okanagan Valley.
Lee S.
Lee S.
Re/Max Penticton Realty and specifically Team Green (John & Natasha) are leaders in their field. We have bought and sold with them on more than one occasion and will continue to work together on future real estate ventures in both residential and commercial. Fun, reliable, honest and real. These guys earn there income and make your experience a good value and positive one! 5+ stars. Thanks!
Chad H.
Chad H.
Pat C.
Pat C.
Great customer service. Very knowledgable about the area.
Bryce T.
Bryce T.
My wife and I had the awesome experience of working with Bruce Dilley and his knowledge of the market and previous experience as a contractor really allowed us to have peace of mind as we made our purchase and move during these uncertain times. Highly highly recommend Bruce and the entire team at RE/MAX Penticton!
Trevor S.
Trevor S.
Ben I.
Ben I.
What a great welcome to Penticton!! Karrie and Paul went out of their way to show us all the different areas of Penticton before we made our decision where to live. Even though the Covid 19 pandemic made it more difficult, Karrie was always able to make timely appointments for viewings whilst taking care to uphold all the required health restrictions for both seller and buyer (providing us with sanitizers, masks, and bootees). Karrie also had an uncanny ability to recognize what I liked and didn't like about about a place. She and Paul were always available, no matter how often we had questions or concerns, always professional, and always friendly.
Fiona C.
Fiona C.
Karrie & Paul really took the time to learn exactly what we were looking for in finding us our beautiful new home in Penticton! Their extremely professional manner ,and patience made the whole experience very enjoyable. I would highly recommend them .They are by far the best team in town. Thanks Peter
Peter C.
Peter C.
Awesome Team
Todd S.
Todd S.
Went up for the weekend met Karrie from the Crush team, she was so helpful and knowledgeable about her town, and the Okanagan, anyone will be in great hands
Veronica L.
Veronica L.
Karrie and her Team at Crush are incredible. The team worked tirelessly to sell my place with great success. They If you need to buy or sell contact this team- you will not be disappointed!
Erin L.
Erin L.
Karrie, Paul and Angela are all amazing! They work hard and tirelessly for their clients and at the same time provide such a positive, fun and enthusiastic experience for their clients. They are realistic and honest and I would recommend them to anyone requiring a realtor in a heartbeat.
Jody M.
Jody M.
Harald R.
Harald R.
Keith K.
Keith K.
The best real estate service in Penticton
LJ H.
LJ H.
Jody B.
Jody B.
Experienced knowlegable agents.
Sandra K.
Sandra K.
I have had the pleasure of knowing Karrie Grewal for several years.I remember her drive and enthusiasm when she first started.Karrie has successfully sold a few houses and found some new homes for friends of mine.Her work ethic, honesty , and down to earth personality make her approachable and easy to to work with.I would absolutley recommend Karrie and her team.
Kathy R.
Kathy R.
The only game in town as far as I'm concerned
Terry V.
Terry V.
karrie G.
karrie G.