The "Safe Haven" of the Interior
Happy New Year! I hope everyone had a fantastic holiday season. Now that the decorations are packed away and we are settling into 2026, the number one question I’m getting is: "Bailee, what is going on with the market?"
We’ve seen the new assessment notices, we’ve heard about new taxes, and there are a lot of headlines flying around. But if you look past the noise, Merritt is sitting in a really unique "sweet spot" right now. While other parts of BC are dealing with some heavy regulatory hurdles, our little corner of the world is looking more and more like a safe haven for homeowners and investors.
Here is the scoop on what you need to know for the start of 2026.
1. The Truth About Your 2026 Assessment
You’ve probably opened your mail to see that your property assessment might be a little lower than last year. In Merritt, the median value for a single-family home dipped about 2%, landing around $450,000.
First off: Don't panic.Assessments are a look in the rearview mirror—they are based on what the market was doing back in July 2025. A lot has changed since then! In fact, as we wrapped up last year, we actually saw buyer activity ramping up. In September alone, single-family sales in Merritt were up 66.7% compared to the year before.
The Silver Lining: A slightly lower assessment often means a slightly lighter property tax bill, which is never a bad thing! The market floor is solid, and buyers are waking up to the value we have here compared to the coast.
2. The "Invisible Border" That Saves You Money
The Provincial Government has expanded the Speculation and Vacancy Tax (SVT) again. As of the 2026 tax year, it now includes our neighbours in Kamloops, Vernon, Penticton, and Summerland (https://www2.gov.bc.ca/gov/content/taxes/speculation-vacancy-tax/how-tax-works/taxable-areas).
And guess what? Merritt IS NOT in a designated taxable area.
This is a massive advantage for us. If you are looking for a recreational property, a cabin near the lake, or a future retirement home, buying in those other towns could cost you thousands in extra taxes—especially if you fall into the "satellite family" or foreign owner category, where rates have jumped to 3% (https://www2.gov.bc.ca/gov/content/taxes/speculation-vacancy-tax/how-tax-works/tax-rates).
In Merritt? $0.That regulatory border basically puts a "On Sale" sign on the Nicola Valley compared to the Okanagan. It keeps our market accessible and makes us the logical choice for anyone wanting that BC lifestyle without the tax headache.
3. Selling Soon? Know the "Flipping Tax" Rules
If you bought your home recently and are thinking of selling, you need to be aware of the BC Home Flipping Tax. If you sell within the first 365 days of owning, there is a 20% tax on the profit.
However, I want to reassure you—this tax is designed to stop speculators, not punish real people.
- Life Happens: If you have to sell because of a separation, illness, job loss, or relocation, you are likely exempt.
- Investor Tip: The government wants more housing. If you buy a fixer-upper and add a secondary suite, you can be exempt from the tax. So, don’t just paint and flip—renovate and densify!
4. Mortgage Myth-Busting
Finally, I’ve had clients ask if banks have stopped using rental income to help you qualify for a mortgage because of new banking rules (OSFI) that kicked in this month.
False!
The rules for the banks have changed (they have to hold more capital funds), but you can absolutely still use rental income to qualify for a mortgage. It just means lenders might be a little stickier on the details, so having a solid pre-approval is more important than ever. (https://www.osfi-bsif.gc.ca/en/risks/real-estate-secured-lending/clarifying-osfis-guidance-rental-income-mortgage-classification)
Conclusion
Merritt is resilient. We have the lifestyle, we have the affordability, and now, we have a distinct tax advantage over the rest of the Interior.
If you’re wondering about how these changes affect your specific home or your buying power, let’s chat! I’m always around for a coffee and a conversation about how we can make this market work for you.