Kelowna, BC – The Okanagan Mainline Real Estate Board (OMREB) reported December 2011 sales activity of all MLS® property types improved over the same month last year as the housing market continued to normalize with prices stabilizing and inventory on the decline at year end. 

“As 2011 came to a close, overall sales activity in the recovering Okanagan-Shuswap market continued to  strengthen with moderate but steady improvement during the last two quarters of the year, and showed remarkable resiliency despite ongoing global economic and financial uncertainty,” says Rob Shaw, an active REALTOR® in the North Zone and OMREB Vice President.  “Sales in most segments are stable and holding their own compared to 2010, as historically low interest rates continue to positively impact purchasing power and improve affordability for buyers.  However, modest economic recovery and job growth have affected disposable income for potential recreation and investment purchasers so these sectors remain sluggish.

“Although listings are trending downward and keeping inventory in check, there is still an ample supply and good selection of properties available in this market,” Shaw notes.  “The 686 new residential listings taken Board-wide for the month of December in both 2011 and 2010 are at 2002 levels (637) and on par with the 10-year average (679) for this month. However, year-to-date listings reported for the 12 months of 2011 (17,619) are 9.8% higher than the 10-year average (16,491) but similar to pre-recession levels (17,855 in 2007).”

Read the rest of this entry »

This is the time of year that we reflect and give thanks. As Canadians we have much to be thankful for compared to what is happening in other countries. Our financial status is secure? world financials may be a little shaky, but the Canadian dollar remains solid. We are admired around the globe even though there are still are areas we need to place more attention on here at home.

On a more local note; this spring and summer have been very busy for me. Buyers’ confidence had returned, helped by low interest rates and more affordable pricing. The savvy buyer had been watching our market and this was the time to purchase…

View Bonnie’s entire newsletter, including her Featured Listings.

Click here to view the Central Okanagan market update (year to date)

The BC Labour Market Outlook – 2010 - 2020 provides labour market demand and supply projects for BC and its regions for the period of 2010 to 2020.  This second annual edition was prepared in partnership with BC Stats and the Ministry of Finance.

Key Findings:

• 1,027,400 job openings are projected for BC over the next ten years;
• Tight labour market conditions, with demand exceeding supply are projected province-wide by 2016;
• The largest number of job openings over the next 10 years is projected for the Mainland/Southwest (666,300 job openings), followed by Vancouver Island/Coas152,600 job openings) and Thompson Okanagan (110,300 job openings). Other regions will account for 10 percent of projected job openings.

Click here to view the full report.

Excerpt from  – e-news business update for the Central Okanagan August 22, 2011 Central Okanagan Economic Development Commission

 A recent survey from CMHC revealed what many in the Real Estate and Mortgage Businesses knew all along.

More and more people are using the internet when seeking information on buying a home.

The CMHC 2011 Mortgage Consumer Survey, states that, “the internet continues to be a valuable resource for homebuyers. Among recent buyers using an online search engine, the most popular search terms included interest rates (86%), mortgage options (76%) and mortgage calculators (69%). Of those who noted using the internet during their research, 86% used an on-line mortgage calculator, 56% printed information, 54% did a financial self assessment and 50% researched other financial products.”

With the surge of internet activity, this is useful information for those in the industry, to be sure- it is about ensuring that marketing dollars are being spent in the right direction- and in this case- the right location, ensuring a stable and steady online presence.

Another interesting finding is that Canadians consumers, for the most part, do not like to rush into anything. Respondents said that they take, on average 11 months to make a home purchase. 88% said that they have a good general idea what their limits were in taking on a mortgage before actually purchasing a home.

“Buying a home is one of the biggest financial decisions most Canadians will make in their lifetimes” stated Pierre Serré, Vice President, Insurance Product and Business Development. “CMHC is committed to supporting homebuyers throughout their decision making process.”

Even before taking on a mortgage, many Canadians felt that it was important to get rid of it. 75% of those surveyed felt that it was important to pay down their mortgage as swiftly as possible. 39% of recent buyers have their mortgage payment set higher than the minimum required, and 20% have made a lump-sum payment at some point in their mortgage.

Most homebuyers (80%) indicate that they follow some sort of household budget to manage mortgage payments- and many of those (71%) anticipated a rise in interest rates in the establishment of perimeters of their budget. Many analysts have expressed fears that a rise in interest rates would push those already stretching their budgets over the edge, but as this survey indicates, that many have at least acknowledged the impact that a looming rise in rates would have on their budgets.

Excerpt from Property Wire Canada – National News – June 23, 2011.

CMHC predicts that the housing market will stabilize in 2011, and that housing starts are expected to keep reflective of ‘demographic fundamentals’ through 2011-2012

“Modest economic growth, in conjunction with relatively low mortgage rates, will continue to support demand for new homes in 2011 and 2012. Nonetheless, we are expecting new and existing housing markets to fall in line with demographic fundamentals, as changes to mortgage rules take hold,” said Bob Dugan, Chief Economist for CMHC.

Housing starts are forecast to be in the area of 166,600 to 192,200 units in 2011, with a point forecast of 179,500 units. In 2012, housing starts are expected to be in the range of 163,200 to 207,500 units, with a point forecast of 185,300 units.

CMHC predicts that existing home sales will be between 429,500 to 480,000 units in 2011, with a point forecast of 452,100 units. In 2012, MLS sales will move up and are expected to be in the range of 410,000 to 511,900 units, with a point forecast of 461,300 units.

The average MLS price nationally has been propped up by a buoyant property market in regions like Vancouver, where a run on luxury housing and an influx of foreign property investors has contributed to significant price appreciations.

There is expectation though, as 2011 unfolds, that MLS prices will begin to fall in line closer to stable expectations.  That said, there is still an expectation that the average MLS price will increase through 2011.  In 2012, they expect that the market will shift towards stability and more balanced conditions, and that price growth- while still forecast, it expected to be much more moderate.

The report says, “We expect the average MLS® price to be between $347,700 and $374,300 in 2011 and between $349,500 and $385,000 in 2012. CMHC’s point forecast for the average MLS® price is expected to move up to $361,100 in 2011, while 2012 will see a further increase to $364,200.”

Looking at different regions, CMHC expects that BC will see the smallest declines in housing starts. In 2012, they predict that the greatest increase will be in BC and in Alberta. Ontario also will see a slight decline in 2011, with positive employment and economic recovery contributing to an increase in 2012.

Excerpt from Property Wire Canada National News – May 31, 2011.

Sending Holiday Greetings to everyone and wishing you Good Health, Happiness and
Prosperity in the New Year.

2010 has been an interesting year in the Real Estate market. An over abundance of
Inventory has definitely created a buyers market. Low interest rates are still very
attractive for first time buyers. The HST has had an effect on new homes. Buyers need
to realize that it does not apply to the resale market only on new product. Read the rest of this entry »

According to a recent survey sponsored by mortgage insurer Genworth Financial Canada, homeowners are in the best shape when it comes to financial fitness in Canada.

Sixty-five percent of homeowners pay off their credit card balances each month (versus 48% of non-homeowners). Furthermore, a quarter of those homeowners with mortgages have managed to make a lump-sum payment or accelerate their mortgage payments in the past year.

Nearly half (44%) of homeowners were able to pay all of their bills and save some money in the past year, suggesting a strong correlation between homeownership and financial fitness. Read the rest of this entry »

Selecting the mortgage term that is right for you can be a challenging proposition for even the savviest of homebuyers, as terms typically range from six months up to 10 years.

By understanding mortgage terms and what they mean in dollars and sense, you can save the most money and choose the term that is best suited to your specific needs.

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One day its doom and gloom:
    The listing inventory is high
        The number of sales is down
           The interest rates are rising
                There are too many people unemployed

The following day, “The recession is over”
    The average home price is up
        The interest rates are near all-time lows
            The selection of properties is excellent
                The number of building permits (jobs) is up 

Who is right?

 When in doubt, Google it!

Read entire newsletter…

Kelowna’s new home construction market, led by the detached home sector, began 2010 on a positive note. 
 
First quarter detached home starts more than doubled from the same three month period in 2009.
 
First quarter existing home sales were up from the same three month period in 2009, with detached and attached home and apartment condominium sales all posting big year-over-year gains.

Excerpt from News from the Central Okanagan Economic Development Commission – June 21, 2010. To read the entire newsletter click here.