Another Great Investment or to Live In!

Great Investment Opportunity. 2 Beds, 2 Baths, 2 Parking stalls. Steps to 2 Great Golf Courses & UBCO. Granite countertops. Large balcony. BBQ, Rentals and pets allowed. Outdoor Pool, Hot tub, and exercise facility. Tenants willing to stay, lease up end of June they are renting for $1275/month. Or move in yourself this summer. Call Steve Higgins RE/MAX Kelowna to view. 250-864-7893

Screams Great Investment!!

Fully Furnished & Equipped 2 Bed + Den with 2 Parking Spots. Right beside 2 excellent golf courses and close to UBCO & Kelowna Airport. Great investment opportunity with tenant or you can move in and enjoy. Pets allowed. This is a Turnkey investment with tenant willing to stay, it is leased to the end of August. With Mountain, City and Valley Views.  Call Steve Higgins RE/MAX Kelowna 250-864-7893

2016 Off to a Good Start

The British Columbia Real Estate Association has reported that a total of 5,831 residential unit sales were recorded by MLS last month, that is up 33.2 per cent from January of last year. Total sales dollar volume was $4.39 billion in January, up 69.1 per cent compared to the previous year.

The average MLS residential price in the province of BC was up 26.9 per cent year-over-year, to $752,906. The BC housing market is continuing to build on momentum from a very strong 2015 with the majority of it coming from Vancouver. Heightened demand is being met with the lowest level of supply in a decade, resulting in increased pressure on prices in much of the province. 

The housing market has seen a roaring start to 2016, with housing demand supported by low mortgage rates and rising employment and wage growth in the province. However, MLS residential sales are forecast to edge lower this year. Total MLS sales last year were the third highest on record at 102,517. A record 106,310 residential unit sales were recorded in 2005, while the only other year passing 2016 was  2007 when 102,805 unit sales were recorded.

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.

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!

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.