Kelowna Market Update


Best February in number of sales of single family homes in Kelowna since 2008. If we look back, we can see a lot of economic predictions about the real estate market. The negative forecasts have been predicting a 40% decline, or more, in house prices while the positive ones have been predicting a more or less stable market for Kelowna. Now after 4 years of basically doom and gloom, we are seeing the first signs of improvements. In review, yes our prices did drop, basically by two years from the high of 2008 down to the 2006 level, or 20% more or less. Inventory is getting absorbed by the increase in population (10.8% last 6 years), and it looks as if we are on our way back to a balanced market; a moderate but steady upward trend. “Supply and Demand regulates the price”.

Total sales for the Central Okanagan (Peachland to Oyama) for the month rose 16.0% to 289 units compared to 249 in February 2011, and improved by 58.0% over the units sold last month (183). Total residential sales for February were up by 11.4% to 263 units compared to 236 sold last year, and jumped 39.2% from 189 in January. Single family home sales (130 units) remained similar to last February (129), but climbed 27.5% compared to last month (102). Townhouse sales in February showed a 113% improvement over 2011 (to 49 from 23), and were up 96% from units sold in January (25). While inventory for the month (4,500 units) was up 1.4% from 2011, the 954 new listings for February dropped 6.7% from the 1,022 last year at this time.

Census

In 2011, the population of Kelowna census metropolitan area (CMA) was 179,839, representing an increase of 10.8% from 2006. This compares to the national growth of 5.9% and to the average growth among all CMAs of 7.4%. In total, there were 74,942 private dwellings occupied by usual residents in Kelowna in 2011 a change representing 12.0% from 2006.
Click here for more information

Tax Credits – First-time New Home Buyers’ Bonus
The Provincial Government recently introduced the enhanced HST new housing rebate, first‐time home buyer’s bonus, and grant for new second and recreation homes programs.
Subject to legislative approval, the proposed bonus is a one-time refundable income tax credit worth up to $10,000.
Click here for more information

Okanagan Lake looking towards Peachland and West Kelowna by Colin Krieg Link to flickr page

This is still a great time to buy real estate!

Remember, Good Deals Are Not Found, They Are Made.

Major Cities Report

Victoria: Real Estate Market Reflects Consumer Confidence
February’s sale volume was virtually identical to that of February 2011, but the average price softened by 5% for single family homes over February 2011. The average sales price for a single family home in Greater Victoria was $579,985, with a six-month average of $594,027, showing a corresponding decrease of 4.7% over February 2011. 14 Single Family Dwellings sold over $1 million.

Vancouver: Greater Vancouver housing market trends near long-term averages as spring market approaches
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,545 on the MLS® system in February 2012. This represents a 61% increase compared to the 1,577 sales recorded in January 2012, a decline of 17.8% compared to the 3,097 sales in February 2011 and a 2.9% increase from the 2,473 home sales in February 2010. The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $670,900, up 6% compared to February 2011 and an increase of 0.9% compared to January 2012. The benchmark price for all residential properties in the Lower Mainland is $601,300, an increase of 5.5% compared to February 2011.

Calgary: Sales Activity On The Rise Throughout The Calgary Region
Calgary and area sales growth pushed February total residential activity up by 11.6% compared to February 2011, mainly due to increased activity in the surrounding towns. Pricing showed modest improvement in February 2012 over January, with the single-family MLS® Home Price Index increasing by 1.0% after several months of relatively flat pricing. Single-family prices rose by 3.2% over February 2011. While prices continue to remain below peak levels, the improvement points to stable price growth.

Edmonton: February Housing Prices Rise with Sales
Edmonton reports that housing prices were up in all housing categories in February in the Edmonton area. The all-residential average price at $329,911, was up 3.7% from January and up 5.7% when compared to the same month last year. In February, the average price of a single family detached (SFD) home was $375,268.

Toronto: Tight Market Pushes the Average Price above $500K.
Greater Toronto REALTORS® reported 7,032 sales in February 2012 – up 16% compared to February 2011. New listings were also up over the same period, but by a lesser 11% to 12,684. The average selling price in the TREB market area was $502,508 in February – up 11% compared to February 2011.

Kelowna Market Update


Kelowna is on the way to a more balanced market. We anticipate an improved 2012 with a steady increase in sales activity, downward trend for listing inventory, and stable home prices for balanced market conditions. Ongoing near record low interest rates will bring more first time buyers into the market. The Alberta economy is improving, the oil patch will continue to rebound in 2012 and we will benefit from it as well. We have already noticed more activity over Christmas, New Years as well as in January.
If you are thinking of selling in the near future, this is a great time to put your home on the market as there is less competition now than in the spring.

Sales in the Single Family Dwellings (SFD) improved and reached 102 here in January which is 3% above 2011 but is 15% below our 20 year average which is 117 sales.

Listings For Sale shows a slight increase to a total of 1,261 which is 2% over last year’s January but 15% below 2009 and way above the middle 2000s which were around the 700 number mark.

Percentage Listings vs Sales we are showing some improvement, but we are still clearly in a buyer’s market at 8.1% of the listing inventory selling, but above last year of 7.7% and 3.7% in 2009. If we compare to a strong market we have a long way to go which was in the middle 2000s at about 25% listings selling.

Average Price slightly dropped down to
$415,358 which is 5% below 2011 of $435,065. The median came in at $403,600 but only 1.6% below last year. The price changes are related to the composition of what was sold. The decline in average price is due to the rise in sales in the under $500,000 mark, as well as the decline in the number of homes sold in the upper-price ranges.
Only one property sold over $1 Million in January 2012 compared to 5 in 2011.

This is still a great time to buy real estate!

Remember, Good Deals Are Not Found, They Are Made.

Major Cities Report
Sellers need to be aware that average prices trending up or down may not apply to their market area. They should consult with their REALTOR® regarding prices in their own neighbourhood communities.

Victoria: January 2012 Shows Increased Activity in Victoria Real Estate Market
While the average price for a single family home in Greater Victoria softened slightly (3.62%) in January 2012 when compared to January 2011, sales over the same period have increased by 9.4%. “Buyers are still price sensitive and very aware of the market values of homes. 9 Single Family Dwellings sold over $1 million: (none over $2 million)

Vancouver: Selection Broadens And Demand Eases To Kick Off 2012 In The Greater Vancouver Housing Market
Home sellers were more active than buyers in January and overall home prices, according to the new MLS® Home Price Index (MLS® HPI), continued to experience more stability and less fluctuation compared to the beginning of 2011. Residential property sales in Greater Vancouver reached 1,577 on the Multiple Listing Service® (MLS®) in January 2012. This represents a 4.9% decrease compared to the 1,658 sales recorded in December 2011, a decrease of 13.3% compared to the 1,819 sales in January 2011 and an 18% decline from the 1,923 home sales in January 2010. The total number of properties currently listed for sale on the Greater Vancouver MLS® is 12,544, a 12.5% increase compared to December 2011 and an increase of 20.2% compared to January 2011.

Canada Mortgage and Housing predicts the average price of a home in Greater Vancouver will rise to just over $800,000 by the end of 2012, compared to $796,000.on November 30, 2011.

Calgary: Housing Market Points Towards Price Stability
The year-over-year volume of residential sales in the City of Calgary dropped, but the inventory of available homes declined even faster in January 2012. The City of Calgary residential market recorded 1,078 sales in January, nearly1% below the same month in 2011. This is in part related to the drop in new listings, which declined by 8% over January 2011, causing inventory levels to continue to contract over 2011.

Edmonton: Price And Sales Stability Maintained In Local Housing Market
Prediction is for a slow but steady growth pattern for the market in 2012 and, as usual, this year started off slowly but is already showing signs of strength as we roll into spring. Listing and sales activity is up markedly as compared to a year ago. In January, the average price of a single family detached (SFD) home was $362,926, down just 1.1% from December 2011. 1 year ago the average price was $354,180.

Toronto: Strong Sales/Price Growth Continue in 2012
4,567 sales through the TorontoMLS® system in January 2012. This number was 8.8% higher than the 4,199 sales reported in January 2011. The average selling price for January 2012 transactions was $463,534 – up by almost 9% compared to January 2011.

Kelowna Market Update


We finished 2011 on a positive note and are enthusiastic for 2012. Like most other cities reported, Kelowna had a stronger second half of 2011 which helped us to not be the slowest year in home sales since 1984 (scroll down to see graph: Last 30 years).

Our listings were on par in the average and very similar to the last few years. (scroll down to see graph: Listing Inventory).

The average price for the year in single family homes came in at $472,888 which was below 2010, and 2008, the same as 2007, but above 2009, 2006 and all previous years (scroll down to see graph: Average Price).

Taking all facts into consideration; all the major cities were up slightly in 2011, the lower interest rate, better economic conditions, plus the great selection of properties, this is very encouraging for serious buyers. We can therefore assume that we will have a better market coming in 2012. In this highly competitive market, well priced homes are being sold quickly and even sometimes over asking price.
We basically managed 4 years of a slower real estate market and are ready to go forward and upward.

Raw Stats
Overall unit sales in the Central Okanagan Zone jumped by 4.6% to 183 units compared to 175 last December, and were down 29.1% compared to the 258 units sold in November. Total unit sales improved by 9.3% to 165 units compared to 151 sold last December, but were down 30.1% from 236 in November. Single family home sales of 96 units rose 12.9% compared to 85 last year, but dipped 22.6% compared to this November (124). December’s inventory of 3,853 units was up 3.4% compared to 3,725 in 2010, and the 461 new listings for the month rose 3.3% over the 446 last year. YTD sales unit sales were off by just 0.3% compared to this time last year (to 3,633 from 3,643), while YTD sales volumes dipped to $1.4 billion compared to $1.5 billion in 2010.

Assessment Information
We all received our assessment notices in the mail last week. Some of us went up and probably most of us went down in dollar value. Nothing alarming!!! Taxes are based on the mill rate and they are a blanket assessment and do not take into consideration upgrades and renovations you may have done. Unless you had taken out a permit, the City would not know that you upgraded. Nevertheless, buyers buy what they see, what they feel, like, and see value in. The assessment value is merely a guideline, mostly for the area evaluation and tells us what kind of taxes we need to pay compared to other properties.
More information: http://www.bcassessment.bc.ca/
See other assessments: http://evaluebc.bcassessment.ca/

This is still a great time to buy real estate!

Remember, Good Deals Are Not Found, They Are Made.

Major Cities Report

Victoria: Last Half of 2011 Sees Stabilized Real Estate Market
While the real estate market started out sluggish in 2011, by mid-summer unit sales had stabilized. Housing prices have softened since December 2010, when the average single family home sold for $647,063, while in 2011 average prices fluctuated and now rest at $592,582.
December marked fewer real estate sales in Greater Victoria, with a total of 339 homes and other properties selling through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®). There were 349 sales in December 2010. There were six sales of single-family homes marginally over $1 million in December 2011.

Vancouver: Balanced Real Estate Market Prevailed Through Much Of 2011
The overall residential benchmark price, as calculated by the MLSLink Housing Price Index®, for Greater Vancouver increased 7.6% to $621,674 between December 2010 and 2011. However, prices have decreased 1.5% since hitting a peak of $630,921 in June 2011.
It was a relatively balanced year for the real estate market in Greater Vancouver with listing totals slightly above historical norms and sale numbers slightly below.

The Real Estate Board of Greater Vancouver (REBGV) reports that total sales of detached, attached and apartment properties in 2011 reached 32,390, a 5.9% increase from the 30,595 sales recorded in 2010, and a 9.2% decrease from the 35,669 residential sales in 2009. Last year’s home sales total was 6.3% below the ten-year average for annual Multiple Listing Service® sales in the region.

Calgary: Year-End Figures Demonstrate Stable Growth
2011 was a year of steady improvement for the housing market. 2011 single family sales totaled 13,186, a 9% increase over last year. While sales increased, listings remained low, with an annual total of 24,245, 6% lower than 2010 levels. The decline in listings relative to sales pushed down inventory levels to 2,761, resulting in four months of supply.
While sales activity in 2011 remained below the long run average by 17%, monthly figures point towards the trend of this gap narrowing.
Single family average price in 2011 reached $466,402, a 1% increase over last year. While there have been some strong monthly increases, primarily due to sales in the upper end skewing the prices,overall prices have remained fairly stable.

Edmonton: 2011 Edmonton Real Estate Market Provides Stable And Healthy Base for 2012
The all-residential average price for the entire year was $325,457 as compared to $329,019 in 2010. There were 10,962 Single Family Dwelling sales (up 5.5%) in 2011 and 4,638 (down 0.4%) condo sales. Total residential sales were 16,893 units (up 3.8%) on listings of 30,906 units (down 2.0%). The average price of a single family detached home was also up 2.0% to $364,803 from December 2010. Relative to last December housing prices were up overall as well.

Toronto: Second-Best Year on Record For Sales
Total sales for 2011 amounted to 89,347 – up 4% in comparison to 2010.
The average selling price in December was $451,436 – up 4% compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of 8% in comparison to the average of $431,276 in 2010.

Kelowna Market Update


Great news! We are happy to report that what looked like the slowest year in the 20 year history for Kelowna, sales for single family dwellings started to turn around slowly in the summer and did gain more speed in September and November. Year to date sales are now on par with 2010. We hope these improvements will continue and are looking forward to a strong spring.

Only 4 homes sold over $1 Million in November but in total we noticed good activity this year in the over Million Dollar market.

Our average price for the year will come in in the mid $400,000 range which will be similar to 2009 but below 2010, 2008 and 2007. Looking forward, we anticipate continued stability as we move into 2012. It’s important to look at price changes over several months and years to determine what trends are developing as there will always be month-to-month fluctuations in prices depending on what properties sell in a given month.

Listing inventory is low which helps to bring the sale-to-listing ratio up. However, the sale-to-listing ratio it is still low, at just under 10% compared to a balanced market at 15 to 20%.

Overall unit sales and sales volumes in the Central Okanagan jumped by 16.7% to 258 units ($98.1 million) compared to 221 ($76.9 million) November 2010, and were down 6.6% compared to the 277 units sold in October. Total residential sales improved by 19.9% to 236 units compared to 197 sold last November, and were down 6.7% from 253 in October. Single family home sales of 124 units rose 12.7% compared to 110 last year, but remained the same as this October (125). November’s inventory of 4,475 units was up 3.1% compared to 4,339 in 2010, and single family homes are up 1% from last November.

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RE/MAX Market Report
Balanced conditions set to return to most Canadian housing markets in 2012, while residential values expected to set new records. Full report here.

This is still a great time to buy real estate!

Remember, Good Deals Are Not Found, They Are Made.

Major Cities Report

Victoria: Real Estate Activity Stable In November
482 homes and other properties sold last month which was higher than in November of last year and showed little change from October. The average price for single-family homes sold in Greater Victoria last month was $592,034. 11 single family homes sold over $1 million in November including one for over $6 million in Oak Bay.

Vancouver: Historically Normal Activity Keeps The Greater Vancouver Housing Market in a Balanced State
Residential property sales of detached, attached and apartment properties reached 2,360 in November. This represents a 5.9% decline compared to the 2,509 sales in November 2010 and a 1.9% increase compared to the 2,317 sales recorded in October 2011. The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 7.2% to $622,087 in November 2011 from $580,080 in November 2010. Since reaching a peak in June of $630,921, the benchmark price for all residential properties in the region has declined 1.4%. Sales of detached properties on the MLS® in November 2011 reached 916, a decrease of 12.8% from the 1,050 detached sales recorded in November 2010, and a 21.3% decrease from the 1,164 units sold in November 2009. The benchmark price for detached properties increased 11.4% from November 2010 to $890,204.

Calgary: Housing Sales Trending Up
Stable Pricing Is Providing Opportunity For Buyers. Calgary residential sales in November increased 8% over last year. The year to-date sales totaled 12,464, this signifies a 10% increase over last year. The year-to-date average price of single family homes were a respective $467,140. Overall, prices remain relatively flat compared to last year.

Edmonton: Stable Market With Few Surprises
There were no surprises in the month-end Multiple Listing Service® sales figures for the month of November released by the REALTORS® Association of Edmonton today. The all-residential average* sales price of $321,135 was up less than 1% from last month and last November. Single family detached homes sold on average for $365,734 which is marginally higher than last November and last month.

Toronto: Healthy Fall Market Continues In November
Greater Toronto REALTORS® reported 7,092 residential transactions through the TorontoMLS® system in November – up 11% in comparison to November 2010. At the same time, the number of new listings was up by 14% in comparison to last year. The average price for November transactions was $480,421, representing an increase of almost 10% in comparison to $437,494 in November 2010.

Kelowna Market Update


Yes, we are still very much in a buyers market. 125 homes or 8.4% of the inventory (1,481) of single family dwellings sold last month. This means it would take about one year to sell all the homes if no additional homes would come on the market.

Overall unit sales and sales volumes in the Central Zone dipped by 1.07% to 277 units ($106.4 million) compared to 280 ($135.5 million) last October, and were down 6.41% compared to the 296 units sold in September. Total residential sales last month slipped by 0.78% to 253 units compared to 255 last year, and were down 8.99% from 278 in September. Single family home sales of 125 units showed a 10.17% drop compared to 139 last year, and were down 13.79% from the 145 homes sold this September. October’s inventory of 4,761 units was up 3.37% compared to 4,606 in 2010, and the 834 new listings for the month rose 10.17% over 757 last year.

Average Prices And Their Meaning
September Average Price Up $517,864. October Average Price Down $463,503.
In September 12 properties including condos and acreages sold here in Kelowna over 1 Million Dollars, it pushed the average price up to $517,864 compared to October only 7 properties changed hands over 1 Million Dollars and the average price came down to $463,503. People often think their homes go up and down based on the average price, but there will always be month-to-month fluctuation in prices. Average prices are particularly susceptible to change depending on whether more higher priced or lower priced properties sell in a particular month. Ultimately the average price only tells us what people are paying and not what kind of a home they are buying

CMHC Kelowna Housing Market Outlook 2012 – Summary
Expect existing home prices to edge up by 3% as demand improves and the supply of listings is drawn down later next year.
Demand for new and existing homes is forecast to strengthen in 2012. Favourable mortgage interest rates coupled with stronger employment growth will support modest growth in demand for housing next year.
Sales of existing homes are expected to increase 11% in 2012. Home buyers will continue
to benefit from an ample supply of listings available for sale.
Kelowna area housing starts are forecast to increase 18% to 1,125 homes in 2012.

This is still a great time to buy real estate!

Remember, Good Deals Are Not Found, They Are Made.

Major Cities Report

Victoria: Real Estate Activity Increases In October
The average price for single-family homes sold in Greater Victoria last month was $595,836, down from $622,393 in September. MLS® sales last month included 260 single family homes, 145 condominiums, 46 townhomes and 10 manufactured homes. 14 single family homes sold over $1 million in October.

Vancouver: Greater Vancouver At Lower End Of Balanced Housing Market
With a sales-to-active property listings ratio of 15%, the Greater Vancouver housing market continues to hover at the lower end of a balanced market and has been trending in that direction over the past five months. The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 7.5 % to $622,955 in October 2011 from $579,349 in October 2010. However, since reaching a peak in June of $630,921, the benchmark price for all residential properties in the region has declined 1.3%. Sales of detached properties in October reached 974, which represents virtually no change from the 976 detached sales recorded in October 2010, and a 34.5% decrease from the 1,487 units sold in October 2009. The benchmark price for detached properties increased 11% from October 2010 to $884,778, but decreased 1.3% compared to the previous month.

Calgary: Calgary’s Housing Market Set to Outpace 2010
Consumers are feeling more confident about the local real estate
market.
Single family home sales totaled 988 for the month of October 2011, an 11% increase over October 2010, but continue to remain well below historical levels. Year-to-date sales totaled 11,503, a 10% increase over last year. The average price of single family homes for the month of October 2011 was $455,399.

Edmonton: October real estate market slower, but not at all scary
In October the average price of a single family detached home dipped lower than the two previous years.The previous month SFD average price $362,897 (down 3.4% m/m). The balanced market continues as evidenced by the same number of residential sales in October 2011 and October 2010. There were 1,170 residential sales in October compared to 1,169 in October 2010. Listings dropped from 2,218 in October 2010 to 2,166 this year.

Toronto: Pace of Home Sales Remains Brisk in October
Sellers’ market conditions remain in place in many parts of the GTA. The result has been above-average annual rates of price growth for most home types. Greater Toronto reported 7,642 home sales through the TorontoMLS® in October 2011. This represented an increase of 17.5% compared to the 6,504 transactions reported in October 2010. The average selling price through the TorontoMLS® in October was $478,137 – up 8% compared to October 2010.

Saskatchewan
Special Highlights Of Interest

Speculators are betting big on Saskatoon’s industrial market, starting 400,000 square feet of new space so far this year.
Royalty Developments, the largest private-sector owner of undeveloped land in downtown Regina, has launched plans for a 16-storey office tower at the corner of Rose Street and 12th Avenue in the city’s financial district.
Regina has the least amount of office space available for rent in Canada, according to a report from commercial realtor Avison Young, which says "strong economic and population growth" in Saskatchewan will help keep the capital city office sector tight.
Receding flood waters have allowed drilling rigs to ramp up production in the southeast Saskatchewan oil patch, with about 50 rigs active near Estevan, Stoughton and Weyburn.
Climate changes combined with rising food prices are delivering higher prices and a brighter future for Prairie farmers

Regina:
Brisk October Housing Market Sets New Highs
There were 342 sales reported during the month in all geographic areas, up 26% from 2010 when 272 sales were reported. This represents a new high for the month of October, exceeding the previous record of 305 set in 2007. The average sales price in all market areas for the month was $282,313, a new high for October and an increase of 10% from $257,268 posted in 2010.

Saskatoon:October 2011 20% more sales than 2010
In the month of October 309 residential properties changed hands which is a 19% increase over October 2010 when 260 properties sold.
The average residential selling price in October this year increased to $327,245.00 from $294,133.00 in October 2010 reflecting an 11% increase.