December 2008 - Kelowna Market Update for all Buyers, Sellers and Investors of Real Estate
December 2008 - Kelowna Market Update for all Buyers, Sellers and Investors of Real Estate
By Jaime Briggs
www.BriggsOnHomes.com
The November ’08 Stats for the Central Okanagan have just been released from the Okanagan Mainline Real Estate Board (OMREB).
Here’s what they show…………..
LISTINGS – We currently have 5,149 active listings in the Central Okanagan, Which means we are only +63% up over November ’07. (The listing inventory is continuing to drop slightly every month as Sellers who are not serious to sell, pull their listings off and either decide to wait out the market, or rent out their properties in the interim.)
SALES – Sales are still down about -59% for the month of Nov. ’08 vs. Nov. ’07, and are down -38% year to date (YTD). November ’08 only saw 149 sales during the month, vs. 364 sales same month last year. Of the 149 sales only 71 were for residential homes. Again, the high inventory and lack of consumer confidence played a major role in decreased sales.
AVERAGE HOUSE PRICES – Kelowna Residential (single family home) prices overall still remain quite strong. Year to Date our prices have actually INCREASED +6.49% from $506,450 to $475,588.90 average price YTD. For November ’08 the average price of a SF house compared to Nov. ’07, has dropped only -0.35% to $460,992 vs. $462,609 the same month last year. Again, good news for home buyers as house affordability starts to come back into their range.
Vancouver, BC – December 12, 2008. British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 67 per cent to $1.07 billion in November, compared to November 2007. Residential unit sales were down 62 per cent to 2,707 units during the same period. The average MLS® residential price in the province was $395,687, down 12.5 per cent from November 2007.
“The average sale price of a home in the province hit a 26-month low in November,” said Cameron Muir, BCREA Chief Economist. “The irony of markets is that there’s no shortage of buyers when prices are near a peak and a scarcity of buyers when prices are near a trough.” Home prices were 8 per cent lower in November 2008—nine months after the peak—than they were nine months prior to the peak.
“Today’s homebuyers are benefiting from a greater selection of homes for sale, more time to thoroughly investigate their choices and the ability to negotiate attractive prices,” added Muir
Year-to-date MLS® residential sales dollar volume in the province declined 30 per cent to $30.3 billion compared to the same period last year. Provincial MLS® sales declined 32 per cent to 66,467 units, while the average residential price increased 4 per cent to $455,537 over the same period.
Kelowna remains a strong real estate market. We have the benefit of being a 4-season destination and a tourism Mecca for the region. Real Estate prices have decreased slightly MTD, but overall the YTD figures remain strong +6.49% YTD vs. ’07. Over the next few months I feel we will return to a more balanced market (equal number of buyers vs. sellers). Low mortgage rates and many great deals on homes will see renters starting to get back into home ownership now and over the coming months!
For more market statistics and graphs go to www.OMREB.com or go to www.BriggsOnHomes.com