Although sales activity in the last three months in Kelowna has increased, we still need to remember the market (recession) that we are currently in.
If you are a Buyer ~ it is still very good news for you. Prices are down about 20% from last year and mortgage rates are at an all time low!
The average SF House price has dropped to $451,651 (-14.3% vs. last YTD) and Condo average price $245,691 (-13.77% vs. last YTD). A great time to still get in the market.
If you are a Seller, it is not as good news. Sellers need to remember that overall market prices are DOWN nearly 20% from last year and that "days to sell" are much higher. April 2009 sales volume was down (-49.88% vs. last YTD) and down in revenues by (-58% vs. last YTD).
The good news for Sellers is that there is less inventory now, so less competition for your properties. However, Buyers still have choices and lots of competitive price options out there, so remember that when an offer comes in! Don't be too hasty to turn away low-ball offers that come in.
Across the Province, the British Columbia Real Estate Association (BCREA) reports that April was the third consecutive month of increasing home sales in the province, on a seasonally adjusted basis. Consumer demand was bolstered by lower home prices and record low mortgage interest rates. Housing affordability hit a three-year high at the beginning of the month.
“Downward pressure on home prices has eased considerably,” said Cameron Muir, BCREA Chief Economist. “An increase in consumer demand combined with fewer homes for sale has trended the market near balanced conditions.” The number of homes for sale through the Multiple Listing Service (MLS®) fell to a twelve-month low in April, on a seasonally adjusted basis.
MLS® residential sales dollar volume in BC declined 25 per cent to $3.1 billion in April, compared to the same month last year. Residential unit sales declined 20 per cent to 6,918 units during the same period. The average MLS® residential price in the province was $449,372 in April, down 6 per cent from April 2008. Year-to-date, MLS® residential sales dollar volume was down 41 per cent to $7.8 billion over the same period last year. A total of 1,889 units were sold in the first four months, down 35 per cent from 2008, while the average MLS® price declined 9 per cent to $433,246.
So . . . . "How long until prices go up?" "Have we hit the bottom yet in prices?" "Will prices continue to go down?" These are all questions that I am asked on a daily basis as an active Realtor in this market. Although I don't have a "crystal ball" and cannot predict what the last half of the year will do, I think everyone is aware of the cycle of "supply and demand". If we keep seeing increased sales activity as we have this past three months, then prices can only go up! That's my opinion.............