Kelowna BC, Canada – Real Estate – Information and Listings

While market conditions continue to be balanced and supported by the economic fundamentals of strong employment and immigration, and historically low interest rates, economists predict it may be 2010 before we once again experience the robust conditions of past. With the Okanagan no longer being the booming market it once was, buyers may soon have the upper hand. It’s been more of a seller’s market over the past few years but people looking to buy a home are beginning to find more options on the market, resulting in a balanced market. Experts remind us that real estate, like the economy is cyclical in nature and the market will eventually balance out again. A balanced market is typically a 6 month supply of inventory. The easing Canadian market differs from the U.S. Prices to the south of us were driven up by speculative investment and relaxed lending standards. Canadian resale housing prices, especially in B.C. and Alberta, climbed due to strong job growth and low interest rates. Downward pressure on home prices is expected to ease by the second quarter of 2009, as an increase in affordability and consumer confidence induces a modest growth in sales.

Two major events have happened in October, but it’s uncertain how that has impacted MLS sales in the market. Mortgage changes took effect Oct. 15, which include the requirement for buyers to put down at least five per cent for a down payment. The federal government also implemented a reduction of government-backed mortgages from maximum amortization periods of 40 years to 35 years. Another factor in the current MLS sales is the “tremendous erosion” in equity values on the stock market. So people who were saving for a down payment will likely have to wait for those equities to rebound.

For additional information on the Okanagan Real Estate Market, please visit http://www.chriswhitney.ca/

Kelowna BC, Canada – Real Estate – Information and Listings

It’s official: it’s now becoming more affordable to buy a home in the Central Okanagan!As property listings continue to outpace sales, housing prices in the Central Okanagan have drawnback with the median price for a residential detached home, declining 5.5% since May 2008, from $497,500 to $470,000. Condo median prices dropped substantially by 11.5% from$280,000 in May 2008 to $247,500 in July. Townhouses were more modest at a 4% decline from $365,000 in June 2008 to $350,000 in July. There are more price reductions inproperties listed on the market, which has a leveling impact on the housing price increases experienced earlier this year. July indicates a slight decline in the total active listings on themarket; a departure from recent trends. Sales of existing homes have continued to trend down in 2008, second quarter residential sales declining almost 40 per cent from last year. Withdemand cooling off, the time required to sell a home has edged up. Similarly, the sale price to list price ratio has moved downward, reflecting an increasingly competitive market.

Residential property sales in the Central Okanagan declined 38.23% in July 2008 to 307 from 497 sales recorded in July 2007. New listings for detached, attached and apartmentproperties increased 46.13% to 1,226 in July 2008 compared to July 2007, when 839 units were listed—condos indicated the highest increase of 77% in inventory from 328 new listingsthis July compared to the same month last year. Total inventory on the market this month over July 2007 shows an increase of $106.81%

The Kelowna area saw second quarter housing starts edge down from the same three month period in 2007. Fewer starts of detached housing more than offset an increase inmulti-family construction. Despite this year’s second quarter decline, housing starts, led by the multi-family sector, reached the highest January-June level ever. This year’s first quartersurge in condominium construction carried over into the second quarter. Construction began on eight projects totaling 422 units, including Kelowna’s second high rise building this year.Lower prices relative to the cost of detached housing and lifestyle are the key drivers.With few detached units available for less than $400,000,more first-time buyers have turned to higherdensity housing.

Resort housing and second residences have become the fastest growing segments of Kelowna’s condominium market. Both absorptions and pre sales have begun to moderate.Demand is weakening as consumer confidence declines in the wake of slower economic and employment growth. Rising costs together, with strong competition from an increasingly wellsupplied resale market and growing number of resort developments elsewhere in BC, have taken a bite out of new condominium sales.

For additional information on the Okanagan Real Estate Market, please visit http://www.chriswhitney.ca/

1st TIME BUYERS REPORT

Potential buyers were asked to rank their top incentives for purchasing a first property. While home prices and interest rates took the number one and two rankings, respectively, the thirdmost popular incentive was the First-Time Home Buyers’Tax Credit.   The recently introduced Home Renovation Tax Credit for 2009 was cited by 42 per cent of potential first-time buyers as either ‘very likely’ or ‘somewhat likely’ to impact their purchasing decision.

In provinces such as British Columbia where high housing prices have kept some buyers out of themarket in recent years, 92 per cent of potential first-time buyers are now motivated by low interest rates and 96 per cent say lower home prices are likely to prompt themto buy.

June 2009 – Kelowna BC, Canada – Real Estate – Information and Listings

The number of sales of single family homes and condos in the Central Okanagan are beginning to close in on last year’s figures.

MLS® sales activity of single family homes in the area was 189 for May 2009 a mere 4.55% down from 198 sales in May 2008.

The number of condo saleswas down only 4% from last  year; 72 to 75 respectively.

Townhome sales show a solid increase of 60 properties sold in May 2009 over 41  sales in the same month last year—an increase of over 46%, the largest increase in the market.

The average price for a single detached residential property sits at $449,870 last month compared to May 2008’s figure of $531,150 and median prices comparing at $425,000 to last year’s figure of $497,500.  Both of these statistics can help determine market trends and current MLS® data is having a stabilizing effect on home prices and showing a trend towards amore balanced market.

May, 2009 – Kelowna BC, Canada – Real Estate – Information and Listings

In April 2009, OMREB reported 841 sales in total– down fifty per cent from April 2008. While April sales remained lower than last year, the housing market gained momentum on amonth-over-month basis.

The median price of a residential detached home is down by just over 15.5 per cent over April 2008 but up by a slight 1 per cent over March of this year, and up 5 per cent from January’s low. Home purchases have increased as households have taken advantage of low interest rates and slightly lower home prices.

In other cities across Canada, new listings are decliningmonthly, yet Kelowna is experiencing a minor monthly listing and inventory increase since the beginning of the year, with only the condomarket showing a slight decline lastmonth.

There’s a greater balance in the housing market, as evidenced by an increase in sales to active listings ratio with houses (9.21%). More and more first time home buyers are taking advantage of great inventory and very

low interest rates. Spring sales activity will likely also get a boost from the federal government incentives announced in the last budget, including the increase in the maximum withdrawal allowed under the Home Buyers’ Plan and the First Time Buyer Tax Credit.

For additional information on the Okanagan Real Estate Market, please visit http://www.chriswhitney.ca/

Kelowna BC, Canada – Real Estate – Information and Listings

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 resales 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.

January, 2009 – Kelowna BC, Canada – Real Estate – Information and Listings

According to Canada Mortgage and Housing Corporation quarterly report, economic expansion and job creation in B.C. will outperform the national average in 2009. Despite the province’s growing population and job numbers, a well supplied resale home market will offer more choice to home shoppers and moderate new home demand.

Again, within B.C., the impact on housing demand of slower job growth will be partly offset by income and population growth with expectations for fewer home starts and resales, and lower prices.

Low unemployment bodes well for housing demand. Incomes are increasing population-driven demand for housing.

Resale markets are already responding to the changing conditions. Increased home listings and fewer resales will moderate house price increases. Home buyers will take more time to shop and lower prices will be welcomed, especially first-time homebuyers.

According to the Royal LePage Economic report released January 6, 2009, emotional reaction to recent economic and political instability did much to dampen consumer confidence during the latter part of 2008, causing a marked slowdown in house sales activity.  However, as a more rational understanding of the issues gains ground, together with a wide range of announced corrective measures, consumer confidence is anticipated to recover, prompting real estate activity to pick up once again in the latter half of 2009. Further, Canada in 2009 enjoys a stronger economic foundation than most countries and that should temper the housing market correction. The combination of low inflation, reasonable employment levels and improving housing affordability, driven in part by low mortgage rates, are anticipated to stimulate demand in the coming months.

For additional information on the Okanagan Real Estate Market, please visit http://www.chriswhitney.ca/

Kelowna BC, Canada – Real Estate – Information and Listings

Canada’s housing market is tilting in favour of buyers, but a U.S.- style collapse is not expected in the future, says a new report from Scotia Economics.  The report says the longest postwar housing boom has ended with the most significant slowdowns in the previously hot markets of Western Canada.  Still, the report says “virtually all regions” are now in favourofthe buyer for the first time in years. The bank is warning Canadians not to take an “overly alarmist view” to the future of the housing market. “This is not a ‘U.S.- style’ bust caused by overbuilding, speculative buying and imprudent lending, but rather a cyclical slowdown accompanied by a valuation adjustment in several large centres where booming demand conditions and temporary supply constraints led to an overshooting in prices,” the report states.

The bank says the market adjustment in Canada has been hastened by the sharp downgrading in global economic prospects and severe turbulence in financial markets. The bank expects the correction in national average prices in Canada, from their late 2007 peak, will be in the 10 to 15 per cent range. “Much of this realignment will occur in Canada’s three Western-most provinces, and will leave intact most of the significant price appreciation of recent years,” says the report.

For additional information on the Okanagan Real Estate Market, please visit http://www.ChrisWhitney.ca