As signs promising reduced house prices pop up over the province, one realtor says that the booming real estate market could be headed for a substantial correction.
And the number of houses being listed is up by nearly a third -- another indication that fewer people are buying, said Tony Klassen of Royal LePage.
"(Buyers are) waiting to see how the vendor will go," said Klassen. "And with that creates apprehension. No one is putting pen to paper."
The correction could be as much as a quarter of current prices, he said.
"Twenty-five per cent is not I believe an unreasonable figure," said Klassen.
In Kelowna last year, there were about 600 condominiums on the market. Today, that number is about 1200.
"I'm going to wait it out a little longer," said Alana Marrington, a potential buyer who says now just isn't the time to buy.
Despite that, developers are following through with projects that will add hundreds more, betting that the Okanagan lifestyle will overcome the market shift.
"I say to my friends back east, imagine summer, without humidity and bugs," said developer Doug Taylor.
An economic report released Friday is predicting substantial price drops across Western Canada, suggesting that some markets are 30 to 35 per cent overpriced.
Realtor Gary Athans is predicting nothing like that here -- but if the prices drop a bit, he says that might be a healthy thing.
"Things have grown to a certain height and now they're definitely levelling," he said. "I'm not sure whether we'll see a huge correction downwards."
With a report by CTV British Columbia's Kent Molgat
