OUR STRONG SPRING MARKET CONTINUES

Real estate activity in March just continued where February left off with unit sales up almost 29% over March of last year with 516 properties of all types changing hands. That means year to date our market is up 23.5% over last year. Our listing inventory is now starting to build as 1,205 new properties came on to the market in March for a total listing inventory of 3,551 which is still about 300 fewer listings than last year at this time but is up about 280 more than in February.

Percentage wise for March, townhouses had the greatest gain in sales at 44% increase over last year with condos following closely behind at 42%. Single family homes, which make up the bulk of the sales, were up over 30%. As far as average price goes, single family homes have held steady at $487,700 year to date but the median price is up 4% at $462,500. Condos and townhouses have maintained a relatively flat median price but condos are starting to show possible gains.

So far the price of oil has had very little effect on our market but it may be too early to conclude that it won’t. Alberta is now making up about 12% of the buyers, down from 18%, but the biggest jump in purchases is from our own local area where they make up about 65% of all purchases, up about 10% from before. The very low interest rates have definitely helped first time home buyers get into the market and overall consumer confidence is strong. Recently, a BC economist stated that if one is not associated with the oil industry, the BC economy is very good for everyone else. With the resurgence of the US economy demand for BC resources and soft wood lumber is increasing. Tourism is expected to increase with our weaker dollar, particularly with the Americans and one would be pretty hard pressed to find a better tourist destination than the Okanagan valley right now.

As we move into April and May, traditionally two of the busiest months, it will be interesting to see this strong trend continue and how it will be affecting housing prices. As we all know, if the listing inventory cannot keep up with the demand, we will see prices continue to climb. So, if you have been sitting on the fence trying to decide whether to make your first purchase or move up into another home, now might be the best time to actually do it.

Market Report for September.

The British Columbia Real Estate Association (BCREA) reports that there were a total of 7,636 residential sales were recorded by the MLS in September, up 17.5 per cent from September 2013. Total sales dollar volume was  also up $4.4 billion an increase of 25.8 per cent compared to a year ago. The average residential price in the province rose to $574,641, up 7.1 per cent from the same month last year. 

Consumer demand remains strong in most BC regions.  More homes traded hands last month in BC than any September since 2009 while the Okanagan had its best September in nine years which is great news for us here in the Okanagan. With Population growth, low interest rates and strengthening economic conditions continue to be supportive of housing demand. 

Year-to-date, BC residential sales dollar volume was up 23.2 per cent to $37 billion, compared to the same period last year. Residential unit sales were up 16 per cent to 65,353 units, while the average MLS residential price was up 6.2 per cent at $565,655.

Strongest January Residential Sales Since 2010

The British Columbia Real Estate Association (BCREA) reports that a total of 4,244 residential sales were recorded by the Multiple Listing Service® (MLS®) in January, up 24.5 per cent from January 2013. Total sales dollar volume was $2.4 billion, an increase of 36.8 per cent compared to a year ago. The average MLS® residential price in the province rose to $565,036, up 9.9 per cent from the same period last year.

"Residential sales activity in the province posted the strongest January since 2010,” said Cameron Muir, BCREA Chief Economist. “Consumer demand has recovered from last year’s lower levels and is now trending at the long-term average.” The ten-year average for January is 4,276 unit sales.

"Stronger economic conditions are expected to underpin a modest uptick in home sales later this year,” added Muir.

The demise of the federal Immigrant Investor Program is expected to have little impact on the Metro Vancouver housing market. “The only impact we foresee is less pressure on the inventory of detached homes in Vancouver’s West Side, Richmond and West Vancouver,” said Muir.

The number of investor immigrant landings peaked at 5,876 in 2008 before declining to just 2,644 in 2012, with a similar number expected for 2013. These numbers include spouses and dependents. The total number of added households is estimated to be between 900 and 1,000 per year since 2011.

Courtsey of BCREA 

Real Estate Signs: Pros Predict the Spring Market

Real Estate Signs: Pros Predict the Spring Market