What does 2015 indicate with lower oil prices?

There is no doubt in my mind that the price of oil will come into play and it will affect our buyers from Alberta, who make up close to 20% of our transactions. Realistically, if we maintain the same activity as 2014, then we are in for a strong year. Prior to the drop in oil prices, 2015 looked like it was just going to continue to move right on as it did in 2014. But even with a significantly lower oil price, December was one of our strongest months for increased activity and January has started off strong too.

Should the oil prices remain low for a relatively short time, which we all think they will, then we may not see much affect at all. If 2015 sees a full year of low oil prices, it may start eroding consumer confidence which has been the main driving force for a strong 2014. The next few months will be interesting.

Real Estate Outlook for 2013

I am sure we are all wondering what the real estate market is going to look like in 2013! Here in Kelowna we expect a healthy housing demand with growth to be slow but steady for Kelowna's resale market. As positive growth is forecast both regionally and provincially particularly in the mining, forestry and tourism sectors.

The elimination of the HST in April will likely be good for housing across the board, but particularly new construction. With consumer confidence expected to increase, that should bring some buyers back into the market especially those that held off buying in 2012. There is a strong outlook for Alberta that should also help the Kelowna market as Albertans make up approximately 20 percent of the city's buyers. Also, there are indication that the mortgage rates will continue to remain low for another year, which will help with first time buyers and those wanting to move up.

February Buyers Survey Results:

The results of OMREB's February 2012 Buyers Survey are in!
A total of 123 respondents participated in this survey – representing 43% of the 285 OMREB sales representatives who acted as Buyers Agents and 32% of the 385 deals closed on behalf of Buyers in February.

FEBRUARY SURVEY SUMMARY

Property Type:

20.7% by First Time Buyers
20.7% of purchases were by Move-Up Buyers
14.0% buying Revenue/Investment Property
13.2% moving from Single Family Home to Strata Unit
6.6% moving into Retirement Home/Seniors Community
4.1% Recreation Property Buyers
3.3% moving from Strata property to Single Family Home

Buyer Type (Family Dynamic):

28.0% Two parent family/children
23.2% Couple without children
16.8% Empty Nesters/Retired
12.8% Single Female
9.6% Single Male
4.8% Single Parent with children

Moving From:

64.8% from Within OMREB Board Area
19.2% from Alberta
9.6% from Lower Mainland/Vancouver Island
4.8% from Other Areas in BC
0.8% from Saskatchewan/Manitoba
0.8% from Eastern Canada/Maritimes
0% from Outside Canada
0% from NWT/Yukon (fifth month reported)

OMREB- Okanagan Mainline Real Estate Board.