2014 Fourth Quarter Housing Forecast for BC

Consumer demand has really gone up this year and is expected to remain at a more elevated level through 2015. With historically low mortgage rates to support the demand, the housing market is also being underpinned by a more robust economy and associated job growth, strong migration and consumer confidence.

The BC MLS residential sales are forecast to increase 15.1 per cent to 83,900 units this year. Stronger economic conditions are expected to be somewhat offset by higher interest rates later next year, and keep home sales from advancing much further. As a result, MLS residential sales are forecast to edge up a further 1.2 per cent to 84,900 units in 2015. The 15-year average is 80,400 unit sales and a record 106,300 MLS residential sales were recorded in 2005.  

The average MLS residential price for the province is forecast to increase 6 per cent to a record $569,800 this year and a further 1.2 per cent to $574,300 in 2015. The new construction activity is generally keeping pace with population and household growth, keeping supply in line with consumer demand. BC housing starts are forecast to increase 4.6 per cent to 28,300 units this year and a further 1.4 per cent to 28,700 units in 2015.

August Market Report.

The British Columbia Real Estate Association (BCREA) has reported that a total of 7,341 residential sales were recorded by the Multiple Listing Service (MLS) in August, were up 7 per cent from August 2013. Total sales dollar volume was $4.1 billion, an increase of 12.4 per cent compared to August 2013. The average MLS residential price in the province rose to $560,318, up 5 per cent from the same month last year. Consumer demand remained relatively busy in August.

The Okanagan and Chilliwack board areas posted the strongest year-over-year gain of 22 to 25 per cent in unit sales, while Victoria and Vancouver increase was lower around 10 per cent. Home sales last month were the highest for the month of August since 2009. With low mortgage rates, increased net-migration and improving economic conditions continue to drive housing demand in the province. Year-to-date, BC residential sales dollar volume was up 22.8 per cent to $28.5 billion, compared to the same period last year. Residential unit sales were up 15.8 per cent to 57,715 units, while the average MLS residential price was up 6.1 per cent at $564,466.

It is heating up in Kelowna and so is the Market!

Kelowna's sales activity took a big jump in April compared to earlier months with unit sales seeing a 19% increase in activity compared to the same month last year. Single family home sales jumped almost 21%. This recent activity now has the market on par to last year given the slower start to the year with a total of 1,190 units sold in the greater Kelowna area year to date. Listing inventory is now down about 10% compared to last year.

The average price of a single family home is just slightly lower than last year at $441,182 compared to $452,859. The median price remains the same for all residential properties however at $349,500. With the expected increased sales activity to continue in our area over the next few months, it will be interesting to see what  will happen to prices. Even though the number of listings are down 10% so far this year, April saw the same number of new listings as April last year.

Our area is definitely doing better than the Lower Mainland where their activity continues to be sluggish in most Greater Vancouver markets. Our lower prices, continuing record low interest rates and the strength of the prairie markets has a positive impact for real estate sales in our area.
Also, as the sunbelt areas of the US continue to strengthen with monthly price increases, many buyers for second homes are looking to the Okanagan once again.

First Time Home Buyers and Anyone with a Mortgage

Here are a few tips to help you pay off your mortgage faster and save you thousands of dollars.

If you are making monthly mortgage payments switch to bi-weekly mortgage payments you are then making 26 bi-weekly payments instead of 12 monthly payments. You are accelerating your payments and paying down your mortgage faster. By doing it this way it adds up to one extra payment a year every year.

Make annual lump sum mortgage payments on the principle. Many mortgages allow you to make a lump sum payment once very 12 months or at renewal time., which is applied directly to the principal. This will shave years off your mortgage and save you thousands of dollars in interest payments.

If you come into a large sum of money through an inheritance or bonus consider making a prepayment, which can shave years off your mortgage.

If you double up on your payments once per year for 25 years, on a $250,000.00 25 year mortgage at 5% you can save over $30,000.00 and shave 3 or more years from your amortization term. So just imagine what you could save if you could double up 2 or 3 times a year!! That mortgage would be paid off in no time.

Speak to your mortgage specialist to see what will work to help you save thousands in interest and shave years of the mortgage. If you are looking for a great Mortgage Specialist let me know and I may be able to help you.

Budget Friendly Tricks for Selling your Home.

Often clients are looking for ways to create stylish lookswith limited budgets. Here are some favorite tricks to try for getting the most out of your budget.

Consider painting those cupboards instead of replacing them. Opt instead to update the cabinetry knobs with a modern nickel, porcelain, glass or pewter or splurge on a granite counter top. Small details make a big difference.

Update your existing baseboards if they are small by adding a topper to give the appearance of a larger more elaborate baseboard and repaint. Upgrade inexpensive store bought drapery panels by adding glamor such as jeweled or tasseled fringe edging finish. Dress up standard furniture by adding touches of style with luxurious throws or pillows.

Consider repositioning your furniture. You will be amazed at how a redesigned room makes a fresh statement. Repainting gives many of our clients the biggest bang for their buck…but only if the right color is applied in the correct area in a professional manner. Painting a focal wall a modern design color is a way to
instantly update your look.

Bicycle Sale

On Saturday Aug 4th there will be a bicycle sale that will help those in Ghana to ride. Bicycles for Humanity will sell a variety of children's bikes for a minimum of a $5.00 donation. The group is collecting adult bikes to send to Ghana, some children's bikes were also donated however, they are not needed. As Bicycles for Humanity can only afford to send over bikes for the people that need them most the adult caregivers or those in need of transportation for employment.

The money raised in selling these kids bikes will go to help cover some of the costs of shipping the much needed adult bikes. In addition to selling the kids bikes the group would be happy to take any adult bikes that are in reasonable operating condition.

The sale will be held in front of St. Charles Garnier Parish on 3645 Benvoulin Rd. starting at 8 am. Come out, buy your child a bike and help a worthy cause. The kids bikes include a few scooters, some tricycles and assorted 2-wheelers for both boys and girls.

This year's second container of Kelowna bikes will be sent in October.