I was at a function called Green Drinks at Doc Willoughby's Thursday and met Dion. We got chatting about being environmentally friendly and eventually ended up on the topic of real estate. He came up with the perfect name for what we experience in Kelowna from time to time with real estate prices and number of sales. The Doughnut Effect! It perfectly describes how as you go farther out from the center of Kelowna (the doughnut hole) the number of sales are fewer and prices are slower to respond to a upward swing. Those hubs, made up of the actual doughnut, tend also to be the first to suffer the effects of downward price movement as we recently experienced. Areas like Lake Country and Glenrosa would be good examples of this. We've got a lack of inventory in the $300-$400,000 range so prices in that range are being squeezed up. Glenrosa and Lake Country are still seeing stagnant sales for the most part. There's some great value out there in those doughnuts!
Talk to you soon...
Paige
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