Keremeos

Keremeos doesn’t get mistaken for a high-growth Okanagan hub. It’s the “Fruit Stand of the Valley,” and that identity is baked into its DNA. As the oldest settlement in the Similkameen—a former Hudson’s Bay trading post—it has maintained its frontier, agricultural character without any major industrial disruption. The economy here runs on the seasons, driven by the orchards and vineyards that line the valley floor. It’s a quiet, small-town life, defined more by the local Grist Mill and the massive “K” on the mountainside than by new development.

Frankly, the economic fundamentals require a clear-eyed assessment. Agriculture is the backbone, but it’s a sector with inherent vulnerabilities to climate and market prices. Beyond the farm gate, the top employers are in healthcare and retail, which is typical for a community serving a settled population. The statistics reflect this: a median household income around $53,200 and an unemployment rate north of 10% signal a lack of high-wage jobs and economic diversity. This isn’t a place people move for career opportunities.

They move here to retire. The town’s demographic profile is unambiguous, with a median age of 63.6 and nearly half of its 1,600 residents aged 65 or older. This is the key stabilizing factor for the local property market. Retirees bring capital from more expensive markets, creating a reliable, if not aggressive, source of demand for housing. They are drawn by the warm climate, the Similkameen River, and a pace of life that has remained unchanged for decades. This influx of outside equity provides a floor for property values that the local economy alone couldn’t support.

The real estate market itself is thin and moves slowly. The housing stock is predominantly single-detached homes, with a notable portion of movable dwellings. For an equity lender like us, market liquidity is a primary concern. A property in Keremeos simply takes longer to sell than one in a larger center. In a default scenario, that extended timeline for recovery means more risk—more accumulated interest, more carrying costs.

We’re active in Keremeos, but our approach is necessarily conservative. The lifestyle appeal is real and provides a measure of stability, but we can’t ignore the underlying economic fragility and the slow sales cycle. For a solid deal with a sensible property and a clear exit, we’ll look at it. Our exposure, however, is capped. We will not exceed a maximum LTV of 55.0% in this community.