Tuesday, 2 February 2016

2016 First Quarter Housing Forecast Update



The British Columbia Real Estate Association has released 2016 First Quarter Housing Forecast Update the other day. The Multiple Listing Service residential sales in the province look like they may have a slight turn back 6.2 per cent to 96,100 units this year, after reaching 102,517 units in 2015. Strong consumer demand is expected to push MLS residential sales up by 2 per cent to 98,000 units in 2017.

Housing demand in the province is being supported by a relatively robust economy, leading to strong employment growth and rising wages. In addition, with net inter-provincial migration on an upswing as many Albertans look to BC for job opportunities. BC home sales are forecast to remain well above the ten-year average of 83,200 units over the next two years.

The inventory of homes for sale is now at its lowest level in almost a decade. Fewer homes for sale and strong consumer demand are expected to push home prices higher in most BC regions this year and in 2017. The average MLS residential price in the province is projected to increase 6.4 per cent to $677,200 this year and a further 4.1 per cent to $705,300 in 2017. All good news for those selling their homes!

New home construction activity is expected to remain at elevated levels corresponding to strong consumer demand and relatively low inventories, particularly on the South Coast.  Total housing starts in the province are forecast to remain close to an annual pace of 30,000 units through 2017, which will be the strongest two year performance since the 2007-2008 period.

Tuesday, 22 December 2015

Season's Greetings, From the Higgin's Household to You!

                             
We would just like to wish all our client's, friend's and family a very Merry Christmas, Happy Holidays and a great New Year that is filled with happiness, health and prosperity for each and everyone of you. May all your hopes, wishes and dreams come true in 2016!

Tuesday, 15 December 2015

Mortgage Rate Outlook



While the benchmark qualifying rate for Canadian mortgages has not changed in the past eight months, offered or discounted mortgage rates at banks and by other lenders
have recently moved higher. The average 5-year rate offered by lenders has increased by about 20 basis points in recent weeks to 2.79 per cent and the discount from prime
lending rates on variable rate mortgages has narrowed from 60 to 40 basis points.
 
These increases are largely due to regulatory and other market structure changes that are pushing the bank's cost of capital higher.
While these recent increases are likely one-time adjustments, with the forthcoming normalization of US monetary policy will likely be a more persistent factor in determining future mortgage rates. 

Given stable inflation and moderate economic growth in the Canadian economy, pressure from rising US rates will likely be the main source of upward pressure on mortgage
rates over the next year. They are forecasting that 5-year qualifying rate on mortgages will increase to 4.79 per cent in early 2016 before gradually rising to 5.11 by the end
of next year.

BC Housing Market



The British Columbia Real Estate Association reports that a total of 8,032 residential unit sales were recorded by the Multiple Listing Service in November, up 34.5 per cent from the same month last year. Total sales dollar volume was $5.38 billion, up 56.4 per cent compared to the previous year. The average MLS residential price in the province rose to $668,317, up 16.3 per cent from November 2014. 

Housing demand last month was the second strongest ever recorded for the month of November. You need to look all the way back to the market of 1989 to find more homes trading hands in November. The largest increase in consumer demand occurred in the Fraser Valley, where home sales climbed over 60 per cent from November 2014. Vancouver and Chilliwack experienced an increase of over 40 per cent, while Kamloops home sales were up 30 per cent. The year-to-date, BC residential sales dollar volume increased 35.4 per cent to $60.7 billion, when compared with the same period in 2014. 

Residential unit sales climbed by 21.5 per cent to 95,927 units, while the average MLS residential price was up 11.4 per cent to $632,209.

Tuesday, 24 November 2015

Welcome to 3329 Gates Road, West Kelowna

If you are looking for a great family home in nice area, priced around the $400, than look no further. This renovated 4 bedroom, 2 bath home has a huge family room that is currently being used as a bedroom. Covered Carport and 2 Car Garage/Shop with Wood Stove is perfect for your hobbies & Toys. Lots of room for your dog to run in the fully fenced yard. Nothing needs to be done, just move in. Call Steve Higgins RE/MAX Kelowna 250-864-7893 for viewing.

Friday, 13 November 2015

The October Housing Market in Kelowna.

Election fever has finally passed and the winds of change have blown through, bringing with it a tide of ‘Trudeau-mania’. With the new Prime Minister and his cabinet now sworn in, only time will tell what this will mean for Canada. I have to admit that I’m happy to see the end of the political dog fight so Facebook will return to normal.
It’s finally starting to feel like fall in the Valley and there’s soon to be snow falling in the hills. We’ve had an incredible fall this year with great weather and buyers keeping local realtors busy. October was a busy month with there being 355 new listings for the month bringing Kelowna's active listings to 1,683 and 151 new listings for the month bringing West Kelowna's active listings to 886 in total. With the average days on the market for October at 62 in 2015 compared 69 for the same time in 2014.

Here are some of the highlights:
• Listing inventories are down - listing inventories dropped by just over 15% from September of 2014, from 761 to just 644 in September 2015.

• Sales are up - Sales increased by 9.4% in October, to 477 listings sold compared to 426 last year. The weather plays an important role in keeping the market active.

• Average house prices are unchanged – the price of a single family home in October was almost identical to the average sale price last October at $496,639 compared to $496,250. What’s interesting is the average sale price year to-date is $524,995 compared to first 10 months of 2014, up by 5.7%. This suggests that more higher value homes are selling.

• Houses are selling faster – the average number of days on the market has decreased by 3.25% compared to October of last year. There are plenty of well informed buyers waiting for well priced homes to come on the market.

• Lower inventories and eager buyers are pointing to continued strong market conditions as we head into winter. With 2016 expected to be one of the largest mortgage renewal years in terms of dollar values, the last Bank of Canada meeting will be welcome news to many.

Thursday, 12 November 2015

BC Housing demand to Ease going into 2016



The British Columbia Real Estate Association has released its 2015 Fourth Quarter Housing Forecast Update. The Multiple Listing Service residential sales in the province are projected to surpass 100,000 units this year. This level of home sales will be the third strongest on record and mark the first year since 2007 that BC home sales exceed the ten year average. After climbing 15 per cent in 2014 and nearly 20 per cent this year, BC MLS  residential sales are forecast to decline 7 per cent to 93,700 units in 2016. 

Less latent pent-up demand and gradual upward momentum of mortgage interest rates is expected to ease housing demand next year  The inventory of homes for sale is now at its lowest level in nearly eight years. Sellers’ market conditions are prevailing in many communities and causing home prices to be pushed higher. The average MLS residential price in the province is projected to increase 10.2 per cent to $626,000 this year and forecast to slow to a 2.2 per cent increase at $639,700. Total housing starts in the province are projected to reach over 30,000 units this year, the highest level of production since 2008. Capacity constraints and an edging back of consumer demand is largely behind a forecast decline of BC housing starts, with it being forecasted to about 28,800 units in 2016.

Wednesday, 14 October 2015

BC's Strong Housing Demand Pulls Our Inventory to an Eight Year Low.




The British Columbia Real Estate Association reports that a total of 8,553 residential unit sales were recorded by the MLS in September, up 12 per cent from the same month last year. The total sales dollar volume was $5.2 billion, up 18 per cent compared to the previous year. The average MLS residential price in the province of BC rose to $605,258 up 5.3 per cent from September 2014.

The strong consumer demand has pulled down the inventory of homes for sale to its lowest level in eight years! BC's market conditions are favouring home sellers in some of our board areas, while contributing to relative balance between buyers and sellers in others. There was a five month supply of residential inventory province wide in September. A balanced market typically exhibits a 5-8 month supply of homes for sale.

The year-to-date BC residential sales dollar volume increased by 33.8 per cent to $49.5 billion, when compared with the same period in 2014. Residential unit sales have climbed by 21.1 per cent to 79,170 units, while the average MLS residential price was up 10.4 per cent to $624,659

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