February's Market 2013

The Okanagan Mainline Real Estate Board (OMREB) reported February’s sales activity down in comparison to the same month last year. Exceptions to the rule were lot sales and Acreage properties which were both up. The impact of tightened mortgage lending rules introduced last year can still be felt. 236 Properties traded hands in February, in comparison to 287 in the previous year which is down 17.77%. Year to date sales are down 8.63% with a total of 455 properties changing hands in comparison to the 498 we experienced last year.

New listings taken last month were also down just over 17% with 784 properties being listed in February in
comparison to the 954 listed in the same month last year. This decrease however is a good thing, as we
have substantial inventory that needs to be absorbed in order to achieve a more balanced market. It is still a
buyer’s market and sellers would be well advised to seek professional advice when pricing their properties prior to putting them on the market as values are dependent on neighborhood, style and inventory level. Attractively priced properties are being sold to willing buyers.

Sellers must remain patient as Days to Sell have been extended to 130 days from last year’s 110. The Average Residential price is $439,786 which is up 2.84% over last year to date indicating that the we might have hit bottom as far as pricing levels are concerned.

Taking into account all other types of Residential property, such as Condominiums and Townhomes, the Average Residential Price drops to $375,122 offering affordable alternatives to home buyers. The recent reduction in mortgage lending rates will boost sales into the spring market.

Courtesy of  
Deborah Moore
Managing Broker

Market Report for January

Buyers felt slightly more optimistic to the start of 2013 than in the last few years.
Overall sales were up 3.8% in the Central Zone in comparison to the same month last year as reported by the Okanagan Mainline Real Estate Board.

In January, 219 properties traded hands in comparison to 211 in 2012. These sales represented a sales volume improvement of over 17% and equated to a dollar volume of $87.7 million in comparison to 2012’s dollar volume of $74.8 million. The continued low cost of borrowing buoyed demand as reflected in the total residential sales for last month rose 4.2% with 197 units sold versus 189 units sold in January of last year.

The sales volume for total residential sales also increased a significant 17.51% representing over $49 million in comparison to $42 million last year. The single family homes and townhouse sector showed an improvement of 4.9% and 16% respectively. The average for all types of Residences was also up 8.93% and came in at $394,815 in comparison to 2012’s $362,440 average.

This total takes into account all styles of residential living including mobile homes, duplex’s, recreational real estate, timeshares, apartments and townhomes. Values and marketing times vary depending on location, property type and price range.

How's the Market

Last month we asked the question…Is the market
taking a pause?... following Septembers sales numbers
dropping 19% in comparison to the previous year.
We are pleased to report a respectable showing of
MLS® unit sales for the month of October, down only
slightly, 1.12%, with 266 residential properties trading
hands in comparison to 269 in October of 2011 as
reported by OMREB.
Other noteworthy results include Westbank First
Nations Residential sales up 400% last month and
39.13% YTD. Apartment and Townhome unit sales
are up 10.54% and 10.73% YTD, respectively.
Year To Date, acreage unit sales are up 28.57%. Lot
unit sales up 23.31%, Westbank First Nations lot sales
are up 200%, total lot unit sales are up 100% and the
sale of Commercial Land units are also up 400%.
These results reveal increased consumer confidence
locally.
The Okanagan Mainline Real Estate Board (OMREB)
is on track to post its best year for MLS® residential
sales since 2009. Home sales are expected to finish the
year up over last year. Currently total residential sales
are up 7.20% year to date.
“Recovery in consumer demand is being bolstered by
improved affordability, resulting from lower unit
prices and persistently low mortgage interest rates.
Market conditions in the OMREB area continue to
favour home buyers. However, the inventory of homes
for sale has trended lower in recent months as new
listings activity slowed.” Reports BCREA.
Currently, listing inventory is down 3.21% year to
date. The reduction in new inventory will help our
market return to a more balanced market in 2013 as
unabsorbed inventory will be reduced.
The BC Real Estate Association forecasts that the
average residential sale price is to remain relatively
unchanged this year and increase just under 2% in
2013. The Residential Average Sales Price year to
date is $400,464 down 1.12% over last year.
Home market values depend on a variety of factors
such as location, inventory, condition and competition.
We invite you to contact our office to receive your
complimentary market evaluation.
Courtesy of
Deborah Moore
Managing Broker
RE/MAX Kelowna