News
OMREB Market Update: January 19, 2010
Posted: Tuesday, 19 January, 2010
Okanagan Housing Market on the Road to Recovery
Kelowna, BC – The Central Zone of the Okanagan Mainline Real Estate Board (OMREB)reported December 2009 sales activity of all MLS® property types improved over last year and the early part of 2009 as the market continues on a steady road to recovery. “If the last six months have been any indication, we are on our way to more balanced and
sustainable market conditions in 2010 as sales continue to rise and inventories drop. This is good news for Buyers as well as for Sellers,” says Brenda Moshansky, OMREB Director and REALTOR® in the Central Zone. “The first part of 2009 was very slow but activity picked up significantly during the last half compared to the downward trend experienced in late 2008.”
Total sales of 241 units jumped 99% in December from the 121 sold in December 2008. However, due to the typically slow holiday season, there was a 25% drop from the 324 sold this November. Residential units sold showed an 84% improvement over last year (214 from 116) – a 19% dip from last month (266). Sales of single family units were up 65% over last year (109 from 66) but down 20% from November (137). Townhouse and apartment sales improved 100% (30 townhouses sold compared to 15) and 154% (56 apartments from 22) over last December.
“While it is taking longer to sell a home, inventory is coming down considerably and bringing more balance into the Central Okanagan market. By the end of 2009, median and average prices averaged out to a decrease in the 7% range. Prices have pretty much stabilized and are expected to increase moderately over the next few months,” Moshansky notes. “Low mortgage rates, strong consumer confidence and an economy that is growing again will positively influence the housing market in 2010 – continuing to drive purchases for first-time buyers, and enticing potential investors and recreation property buyers to consider returning to the
Okanagan.” Brenda adds, “If a home is priced well it will sell. The guidance of a REALTOR® to help determine market value in this competitive marketplace is important for both Buyers and Sellers.”
The Central Zone of OMREB covers an area from Peachland to Lake Country and east along Highway 33 to Westbridge (including the Christian Valley). The Okanagan Mainline Real Estate Board (OMREB) is comprised of 1,139 member
REALTORS® and 86 real estate offices in the Southern Interior of BC. For the most comprehensive source of all real estate listings, home buying and selling information, visit our national websites at www.realtor.ca and www.icx.ca. Our local public website is available at
www.omreb.com. All OMREB listings are published in the MLS® Real Estate Review magazine available at all real estate offices and various locations in the Central Okanagan, North
Okanagan, the Shuswap and Revelstoke areas.
For comprehensive Board-wide statistical information please visit www.omreb.com
October Market Update
Posted: Monday, 16 November, 2009
Housing Prices Stabilize as Market Achieves Balance
Kelowna, BC – The Central Zone of the Okanagan Mainline Real Estate Board (OMREB)
reported October 2009 sales activity of all MLS® property types has picked up since last month and has continued to improve over last year and the early part of 2009. Total sales in October rose marginally by 4% to 417 units from 403 in September but increased substantially by 141%
over the 173 units sold in October 2008. The 215 single family residential units sold last month were up 2% compared to the 210 units sold in September but rose 136% from 91 last year. Townhouse and condo sales continue to
heat up with 56 townhouse units sold – a 211% improvement over 18 last October, and 73 condos sold – up 114% from 34 in 2008.
“Although sales figures have taken a significant leap from October 2008, we have to remember that the market was in a downward spiral last year at this time as the impact of the world economic crisis was becoming evident,” Brenda Moshansky, OMREB Director and REALTOR® in the Central Zone. “The robust sales activity we are seeing now is trending towards 2002 levels. The gradual but steady growth in the Okanagan has resulted in a healthier and balanced
market as inventory drops and prices stabilize. Now is a good time to buy.”
“Summer recreational sales were down but there seems to be more interest in winter recreational properties this fall – contrary to the seasonal slow down expected at this time of
year,” Moshansky notes. “We could anticipate an influx of activity as prices continue to rise in the Lower Mainland and buyers look to the Interior for more reasonably priced retirement, investment and recreational property. As the Alberta economy shows signs of improvement and home prices continue to rise, the resulting increase in consumer confidence and home equity could bring investment buyers back to the Okanagan in the spring.”
Brenda notes, “If a home is priced well it will sell. The guidance of a REALTOR® to help determine market value in this competitive marketplace is important for both Buyers and Sellers.”
The Central Zone of OMREB covers an area from Peachland to Lake Country and east along Highway 33 to Westbridge (including the Christian Valley). The Okanagan Mainline Real Estate Board (OMREB) is comprised of 1,146 member
REALTORS® and 87 real estate offices in the Southern Interior of BC. For the most comprehensive source of all real estate listings, home buying and selling information, visit our national websites at www.realtor.ca and www.icx.ca. Our local public website is available at
www.omreb.com. All OMREB listings are published in the MLS® Real Estate Review magazine available at all real estate offices and various locations in the Central Okanagan, North
Okanagan, the Shuswap and Revelstoke areas. For comprehensive Board-wide statistical information please visit www.omreb.com
September Market News
Posted: Tuesday, 27 October, 2009
Summer Housing Market Momentum Carries into Fall
Kelowna, BC – The Central Zone of the Okanagan Mainline Real Estate Board (OMREB)
reported September 2009 sales activity of all MLS® property types has picked up since last
month and has continued to improve over last year and the early part of 2009. Total sales in
September rose marginally by 3% to 398 units from 388 in August but increased 51% over the
264 units sold in September 2008. The 207 single family residential units sold last month were
up 20% compared to the 173 units sold in August and up 60% from 129 last year. Townhouse
sales continue to heat up with 62 units sold – a 121% improvement over the 28 last September.
“The market momentum gained in the summer is carrying over into the fall as consumer
confidence begins to rise,” says Brenda Moshansky, OMREB Director and REALTOR® in the
Central Zone. “Sales are robust and the year-over-year sales activity levels continue to improve
while supply and demand continues to climb.”
“The resurgence of market activity in Metro Vancouver and Victoria was expected to filter into
the Okanagan; however, the lag has been longer than past historical trends. The good news is
that the gradual but steady growth in the Okanagan is seen as more sustainable, whereas the
sharp rebound at the Coast is expected to plateau and cool off in the coming months given the
lack of other economic indicators to support it,” Moshansky adds.
“Recovery is along the lines of expectation given the slow economy and low employment in the
province as the resource sectors continue to struggle. While the demographics are still very
much in our favour, we will be seeing shorter cycles as people delay retirement until the
economy improves and stock markets stabilize.”
Brenda notes, “Buyers are driving hard bargains but if a home is priced well it will sell. The
guidance of a REALTOR® to help determine market value in this competitive marketplace is
important for both Buyers and Sellers.”
The Central Zone of OMREB covers an area from Peachland to Lake Country and east along
Highway 33 to Westbridge (including the Christian Valley).
The Okanagan Mainline Real Estate Board (OMREB) is comprised of 1,141 member
REALTORS® and 87 real estate offices in the Southern Interior of BC. For the most
comprehensive source of all real estate listings, home buying and selling information, visit our
national websites at www.realtor.ca and www.icx.ca. Our local public website is available at
www.omreb.com. All OMREB listings are published in the MLS® Real Estate Review magazine
available at all real estate offices and various locations in the Central Okanagan, North
Okanagan, the Shuswap and Revelstoke areas.
For comprehensive Board-wide statistical information please visit www.omreb.com
March Market Statistics
Posted: Friday, 24 April, 2009
In March 2009, the Central Okanagan Real Estate Board began to shake off its winter blues and reports a total of 248 sales, up 53% over last month. This was a decrease of 56% from March 2008 when total sales equaled 458.
Sales in March for residential detached and condos are also up 53% and 62% respectively over February 2009 indicating more confidence in the housing market today and rising to more typical levels coming into the spring season.
The absorption rate for residential single detached housing settled in at a 12-month supply— reminiscent of the rate seen in early summer 2008. March resale’s show some positive results during these challenging economic times as a greater number of households take advantage of increased affordability in the housing marketplace, however, this same segment of the marketplace is continuing its 2009 trend to indicate an elevated number of days on the market (91 days) before selling—numbers not seen since late 2005.
First time buyers are showing increased interest, attracted to low interest rates, a good supply of inventory, greater affordability and a considerably lower overall cost of servicing a mortgage compared to recent years in the Central Okanagan.
The Conference Board of Canada has determined that British Columbians are more likely to go out and buy a home right now than they have been over the past months, although credit difficulties will be one of the largest obstacles to overcome.
Despite the current challenges in the economy, migration will become increasingly important over the coming decades, as BC’s population ages. An increase in migration means that demand for housing will continue to be robust over the long term. Buyers will continue to have choice and affordability in this market, but competitive pricing remains a reality. Real Estate Report, April 2009 – Rob Marak Royal LePage.
Sales By Price 2009 2008
$0 to $200,000 1 0
$200,001 to $240,000 5 1
$240,001 to $280,000 7 10
$280,001 to $320,000 25 12
$320,001 to $360,000 44 30
$360,001 to $400,000 50 68
$400,001 to $440,000 37 81
$440,001 to $480,000 27 70
$480,001 to $520,000 28 69
$520,001 to $560,000 9 61
$560,001 to $600,000 10 40
$600,001 to $999,999 25 83
$1 Million and over 2 5
A Few More Real Estate Stats:
• Average House Price in Mar. 2009 $438,493
• Median House Price in Mar. 2009 $410,000
• Number of houses listed last month: 440
• Number of lakeshore homes sold last month: 0
• Average Mobile Home Price: $ 81,671
• Dollar value of sales in Mar. 2009 $90,095,504
• Dollar value of sales in Mar. 2008 $193,840,992
Courtesy of John Thomson Report, Castanet.net
March 2009 Market update!
Posted: Wednesday, 04 March, 2009
Buyer’s market for those who look
Updated: Mon Mar. 02 2009 22:34:53
ctvbc.ca
It is officially a buyers’ market now as real estate prices continue to fall. That means your dream of owning your own home could come true sooner than you thought possible.
Josh Grover and Carmen Oke recently celebrated moving into their first home.
"Neither one of us actually thought it would happen," said Josh.
Before they started looking they sat down with their bank and set a firm budget.
Carolyn Heaney of Bank of Montreal helps clients make a plan.
"Plan carefully and be realistic," is her advice to those starting the process of looking.
Many banks have tools to help home buyers, like this BMO First Home Essentials kit.
"Everything from looking for a realtor to actually shopping for your first home," explained Heany. "It has worksheets in it that actually compares one home versus the next one you see. How to chose a lawyer, how to chose an inspector," she said.
Many experts say you will save money with a variable-rate mortgage versus a fixed rate, but there are risks.
"With a fixed rate mortgage you know absolutely what your monthly housing costs are going to be month after month, regardless of what the economy is doing. With a variable rate mortgage not so much it can change, but for some people they don’t mind they have a higher risk tolerance for that sort of thing," explained Heaney.
Carmen and Josh chose a five-year fixed-rate mortgage at below five per cent.
With the mortgage pre-approved, they visited many open houses.
"We were really aggressive when we started looking. We know what we wanted and how much money we wanted to spend," said Josh.
They found there were lots of condos on the market. The catch? Many were overpriced -- with owners not adjusting to the buyers’ market
"A lot of places need a lot of work and people are still expecting top dollar for them and it’s just not a reality any more," noted Josh.
Their condo has a great view and inside was extensively renovated -- but they still bargained hard -- and the price dropped $30,000.
"We feel pretty lucky for the price we did and he dropped it quite quickly," said Carmen.
And they didn’t skip any steps, including a thorough inspection.
"Our place is only 1,000 square feet and he spent over two hours in here going through the outside of the building the parkade the inside here checking everything out,"
It was all documented in a huge binder, which they went over item by item. The condo got a passing grade and Carmen and Josh now own their first home.
Carmen and Josh said they asked lots of questions along the way -- learning more than they ever thought they would. It’s the beauty of the buyers market. You have the time to make the right decision.
With a report by CTV British Columbia’s Chris Olsen.
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