We have also seen a marked stability in average and median sale prices since April - the average sale price for a single family home has been between $466,000 - $470,000, with the median price reflecting that HALF of all residential single family homes sold UNDER $430,000 - really demonstrating where the most of activity is taking place.

Supply has continued to creep up every month of 2011, so that with July’s weaker sales volume, yet increase in product, we are at our most well supplied point of the year. With further uncertaintity in the stock market, and world economic concerns taking up much news space in the headlines, these factors could combine to make Fall 2011 a fabulous time to invest in Okanagan Real Estate.

There are some really tremendous values out there right now, with 121 foreclosures in the Central Okanagan, as well as the rest of the resale market having to compete and adjust at our new pricing levels, easily as low as 2006-7 costs. In certain segments, like affordable, older style condos, sale prices are reaching levels comparable to sales recorded as far back as 2005-2006, notably The Lagoons in downtown Kelowna and The Evergreens, also in the downtown core have both had sales that are most similiar in history to the prices recorded in those years.

Some hot deals right now - 2 bdrm, 2 bath condo downtown Kelowna, top floor, corner unit for $179,900. With 5% down, you could be in for as little as $730/ mo! There are also numerous deals in every segment - homes with pools under $400,000,a newer Rutland 3bdrm townhome w/ double garage for $254,900, 4 acres with a mobile in a great part of West Kelowna for $375,000…basically great bargains every where you look.

Enjoy the rest of our beautiful Summer 2011

I watch the foreclosure market quite closely, and while I was at court with clients who purchased one just last week, we were one of the lucky recent buyers who went unchallenged with our trigger offer. Buying a foreclosure can be a more complicated process than a listing being sold without the need of a court order: the main difference being that between getting your offer accepted and KNOWING that you can actually buy the property you want, your offer price is disclosed to any and all other interested parties. This, in the case of an exciting offer price, can drum up more interest and other competing offers. On the court date, the judge may be presented with multiple offers, and his/her mandate will be to sell the property to the highest bidder ( not necessarily the first buyer to come along). We were fortunate and my buyers are ecstatic about their purchase - but sole offers are happening less and less as the market picks up and the number of buyers prepared to do their due diligence and go to court for the chance at a bargain is increasing. There is a home in the Upper Mission that was just reduced from $849,000 to $799,000 on Tuesday, and by Thursday there was word of TWO cash offers awaiting a court date. For this price point, that is a tremendous level of interest considering our winter market conditions- and there is yet another few weeks likely before the judge will get a chance to decide who wins…meaning there could be additional offers as well.

If you are interested in buying a foreclosure there are a few strategies that could help you achieve success; look early, look often, be ready to go with your financing, be prepared to make decisions quickly- and most importantly be prepared to be patient with the red tape of dealing with a lender when they act as Seller in the initial stages of the transaction.

There are currently 98 foreclosures in the Central Okanagan, ranging from mobiles to waterfront condo’s, to starter and high end homes.

There are numerous excellent values out side of this segment as well! As always, your best strategy is to work with an agent who will be dedicated and will work hard to help you achieve your goals.

Here are some interesting numbers I had emailed to me today from a competing brokerage looking to hire me off… I thought I would post them since I lack enough ego (or patience) to sit down and produce these on my own. LOL.

For 2010

List to Sales Price Ratios: OMREB average for 2010 was 95.42% of asking price for sellers.

MY Number: 98%

·Listings Taken vs. Listings Sold: OMREB average for 2010 was 30.7% of listings taken sold

MY Number: 53%

·Average Days on Marker: OMREB average days on market was 105 days to sell.

MY Number: 68

Call anytime for a consult on your specific real estate needs!

It was an odd year - strong in the first six months, likely due to an overall optimism created in part by the Olympic games, Spring market fever and some pent up demand… then the switch flipped down and from June - December, we headed back into a very sluggish market ; frustrating for sellers needing to sell, and difficult to feel confident in a buying decision if you were on the other side of the fence. Although it should be a time where Buyers are jumping in with glee at the vast array of bargain priced product in EVERY segment, human nature dictates to question a good thing. Many buyers have still held back, speculating on a double dip recession and further decreases in pricing.

In 2010 we saw a decrease in investors and out of town buyers looking to speculate in our formerly desirable marketplace - hesitancy and fiscal restraint are good explanations as to why this stagnancy had a second resurgence in the second half of 2010.

Seasonally, the New Year is often a time of activity in our market place, which then trickles through the reliability of a strong spring market. Local employment numbers are optimistic, as is the expected migration rate to the sunny Okanagan. I predict that 2011 will be a year of stability - and an exciting year to buy in as we are in year 3 of a down cycle and the opportunities are tremendous! Combined with super low interest rates, affordabilty is not an issue. For most people, owning can be cheaper than renting.

I predict it will continue to be a challenging time to sell ; unless you are prepared to confidently address the BIG 3 - Pricing, pricing, oh - and wait - yes- PRICING! You need to price your home within a very small margin of where you expect it to sell, make sure it presents well for each and every showing and be prepared to negotiate with buyers who will undoubtedly have the advantage throughout the year- especially in the higher priced segments.

My favourite picks for the smart buyer this year are large pieces of land, especially anything that may be sub-dividable, fabulous locations close to the lake, and view properties. Look for features that in a upswing market create excitement in buyers and can raise your value faster than those around you. Its a price war right now, and in the current market, these features don’t fetch the same premium price they will in a tighter market place.

Real estate markets are cyclical…they will always change over time. The trick is to recognize where we are in the cycle and buy and sell accordingly.

Happy New Year!

Looking at the stats as delivered by our board earlier this week, I faced the puzzling question of WHY…with the slower sales and price reductions rampant…are we seeing an increase in average sale price, year to date, reflected in the data? The answer has proven interesting and insightful and worthy of the dedication of this blog - WHO has FOUND the inspiration to buy when many others are resistant? The wealthy. Plain and simple.

In 2009, January - October saw 39 sales of homes $1,000,000 plus. The same period this year saw DOUBLE the volume - with 78! In October, we were excited to report a sale of a home on 29 acres of premium waterfront for $10,000,000!

The theme of being greedy when others are cautious, and cautious when others are greedy is boldly displayed by these numbers. Those who have the MOST confidence in the Central Okanagan as a solid investment opportunity are those with the most amount of money on the line. Perhaps the rest of us need to take note of this trend and feel a bit bolder about our current and future investment strategies.

The deals are rampant, interest rates are rock bottom and the rental market is stable. For an overview of your specific neighbourhood of interest, call me anytime for a one on one.

My predictions for winter and early spring are for a slight rebound in the market place, as recent inventory levels have adjusted slightly downward, and many of our current pricing levels are too good to resist! I expect this to gradually spur on many buyers who have been waiting on the sidelines, wondering what the future holds.

A great example of the value available is a 2 bedroom, 2 bath 1050 sqft downtown condo I just sold for $169,000! The lowest sale in that building since 2005… There are tremendous amount of fabulous single family homes throughout our area for the low 300’s to high 300’s, and years of supply in the high end segment, making it especially ripe for a Buyers Market mentality when negotiating your deal.

Wishing you a happy fall!  

From a year to date perspective, sales volume is clearly up : 849 single family homes sold this year, up from only 620 last year at this time. Increased confidence in the marketplace has meant many sellers who resigned the idea of moving their holdings last year and waited for a sign of increased activity, have now began trickling that pent up inventory back into this years abundance of real estate offerings.

Total listing inventory stands at a total listing count of 5561 listings.. up over last years 5395…despite the increased level of sales. The single family market experienced 187 sales in May 2009, but with a total inventory of over 1800 homes for sale, it means a supply in excess of a 10 month absorption rate, which is typically a strong indicator of a Buyer’s market.

The condo market scene is even more supplied with an increase over last years inventory from 1082 to 1195 units listed for sale. We have seen a shift with many developers abandoning in-house marketing teams, or working cooperatively with the MLS system. Sopa Square and Copper Sky are a couple of recent examples. There are numerous other developments, which although were proudly promoted as SOLD OUT by developers near the completion of the building, are now over run with individuals attempting to dump the units they scooped up in hopes of making a profit… many of these individuals are now facing a tough decision- sell at a loss, rent with a monthly deficit or hang in for the long haul.

The diversity and selection of product is staggering, and I have started to make it a weekly habit of seeking out new developments and previewing the product selection, as it is clear we will be dealing with this inventory for quite some time.

The good news for buyers is that there are multitudes of fabulous deals to be had… Congrats to Sarah who just landed herself a hot condo buy - 2bd, 2bath 1182 sqft corner unit by Parkinson Rec for the low 170’s! This is certainly the happiest part of my job right now, finding the deals!

I have some excellent values in my inventory, and I invite you to check them out, or link directly to realtor.ca to shop the whole market. Feeling overwhelmed? This is definitely the kind of market to enlist the help of a real estate professional who will work hard to find you the right home!

Affordability in the Okanagan is in high demand…and since that’s the segment I nearly always work in, it has meant a huge first quarter for myself and my clients.

Pricing and preparation are like chocolate and peanut butter-better together. A home simply can’t be too clean or too ready for market if you want to sell it quickly. I’ve been fortunate that all my sellers so far this year have been in complete agreement.

We are starting to see inventory levels climb to seasonal and predictable highs-so competition for buyers remain strong, and will continue to be more fierce. To balance it out-the buyers have started migrating from colder climates, and my love of all things Albertan has returned! I am looking forward to a balanced spring and summer market, with moderate price increases over last years dismal lows.

Small changes to lending policies concerning rental properties will make it a bit tougher to acquire a second or third investment home. After April, you will need to show a 20% down payment. Most people in the position of investing in another home will likely be able to satisfy this requirement, and for those of you feeling like you missed the boat- you just need to look at it from another angle. Keeping your current dwelling is likely easier to do than acquiring a new revenue property. ‘Moving on up” in the deflated market into a new home will only cost you the same 5% down payment as before - as long as it will be your new primary residence. So take the best advice I ever got - and continue to give - keep you first home if you are in a position to do so… when we do see the market rebound, your gains will double with minimal effort.

There are deals EVERYWHERE now, so if you want to head out shopping, call me and we’ll get to work !

Happy Spring!

The summer saw slow gains and moderate sales throughout the valley, but September and October have seen big gains over last year’s volumes. Combined with higher consumer confidence and lingering amazing low interest rates, as well as a depleted lower end inventory, we are starting to see some strong signs of a stabilizing market…if not sporadic evidence of moderate INCREASES. Although incidence of strong gains are hard to track, with the science of statistical averages painting only a very broad picture - there are specific examples to be found. In April, I sold a 2 bdrm, 2 bath downtown condo to a hard working single woman… for the crazy GREAT price of $175,000. D’arcy was a first time buyer, with retirement plans in the long range goal, and the need of scoring a tremendous deal large on her priority list. I was confident we were able to do just that - and I strongly believe she capitalized on the bottom of the market. Since her sale a corner unit ( slightly larger but on the same floor and in similar condition) sold for $220,000! The cause; lack of supply of affordable,urban, non age restricted condos! I couldn’t be more pleased that D’arcy is already in a positive equity situation after only a few months!

Lack of supply is expected to continue throughout the winter months, as it seasonally tends to be a market less homeowners want to try to sell in - but in truth it could be a GREAT time to sell if your situated in a high demand segment as it means less competition. High supply levels still exist in higher end ( over $600,000 single family homes and condos/ townhomes over $350,000) so there are still allot of great deals to be had if you want to buy up!

Investors are back, the future looks bright, and their are still choices sitting anywhere from 10% - 15% off peak market levels of early 2008. My top investment picks are still Peachland flats ( walk to the beach, self contained home for under 350,000 ), Lakeview Heights ( just sold my sister a home there, so I MUST be serious on that recommendation :), as well as anything with a view! View properties tend to be more volatile than non view properties - in a hot market they will sell for a large premium, but in a softer market, they tend to get lumped with all the other competition. It is my experience that when prices rise, view homes can out pace the rest of the market by about an extra 5%.

As we rapidly gear up for the holiday season, I wish you all time to enjoy one of the most beautiful times of year in our scenic valley! If you would like more detailed information on a changes in a particular market segment, please don’t hesitate to email me or call with your requests. I also have begun emailing out a monthly statistical review, and would be happy to add you to the program.

Cheers!

Suzie