Kelowna Jump In or Sit This One Out? Housing Bubble?

Kelowna Jump In or Sit This One Out? Housing Bubble?

Should a prudent, price conscious home buyer be looking at investing in Kelowna’s housing market these days or should he be sitting this one out and renting until things cool off and prices come back down to earth?

Is Kelowna In A Housing Bubble?

 

I don’t think there’s any argument that the housing market in Kelowna has been insane this year.  Multiple offer stories don’t even warrant a real estate office lunch room conversation anymore and homes are sometimes sold before hitting MLS.  It’s really difficult to schedule a home inspection unless a lot of notice is given and real estate lawyers are busier than they’ve ever been.  Sellers are tougher to negotiate with and aren’t moving much from their asking prices if they’re even moving at all.   You get the picture.  The numbers reflect this…

Average Housing Sale Price $616,000

 

There have been 1,910 residential sales so far this year at an average sale price of $616,000 compared to 1,500 sales year-to-date last year at an average sale price of $541,000.  That’s a 27{f0a0a72383b5d412aa1cdd82beeb3baa9f2169d63afba57b72be67b4c5074c09} increase in unit sales and a 13.8{f0a0a72383b5d412aa1cdd82beeb3baa9f2169d63afba57b72be67b4c5074c09} increase in prices.  Can this continue indefinitely?  Is an average sale price over $600,000 the new normal?  Will prices fall once this bubble we read about bursts?  Can a community like ours with an average household income under $60,000 support even higher prices?   I’ll submit that the answers are Yes, Yes, No, Yes.

 

Let’s take a look at the above questions in a historical sense.  Not really historical in terms of when Orchard Park Mall was a farm but let’s look back to 1996 only because that’s when I moved here.  The year ending in 1996 was kind of dismal and lackluster but so was 1995 so it wasn’t an anomaly.  The average selling price was $176,000 and that could buy you a newer grade level entry home in North Glenmore or a 1970s era bi-level in the Mission.  Ten years later prices jumped to $419,000.  That 1996-2006 period saw a jaw dropping price increase of 138{f0a0a72383b5d412aa1cdd82beeb3baa9f2169d63afba57b72be67b4c5074c09} despite losing our biggest private employer and a forest fire that we still talk about.  People from away discovered us and they haven’t stopped coming.  Even with the numbers jumping into the stratosphere this year, the 2006-2016 period saw housing jump a conservative 47{f0a0a72383b5d412aa1cdd82beeb3baa9f2169d63afba57b72be67b4c5074c09}.  If anything there’s a strong argument that Kelowna might still be undervalued.

 

Housing Bubble

There’s no housing bubble.  Full stop.

 

Most people don’t  like buying in this market I get the skepticism from potential buyers when the see what little you can get for $400,000 but I can’t see things going back to the way they were, way way wayback in December of 2015.   There are just too many people who live in other parts of the country who’ve wanted to live here for some time, and now seems to be the time.  These people aren’t flinching at new homes in Winfield with asking prices in the $700s and they all have like-minded friends with the same dreams of living in a place like ours.

 

Thanks for reading.  Please follow me on Twitter at @smithap01 or visit my website at www.okanaganbc.com

 

 

Andrew Smith - RealtorLiving in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here Okanagan real estate listings

Selling Your Home With A Reverse Mortgage

Selling Your Home With A Reverse Mortgage

More and more older home owners have turned to reverse mortgages because it allows them to take advantage of their equity in their homes. In most cases, people take out a reverse mortgage, and they have plans to stay in the home. However, sometimes you may have to sell your home, and this is when people wonder how to sell their property even though it has a reverse mortgage.

 

The good news is selling a home with a reverse mortgage is similar to selling a regular home. However, there are a few things you should be aware of. One of those things is you need to pay the reverse mortgage in full once the home sells.

 

Family members are often left with paying a reverse mortgage off. In fact, it’s quite common for kids of a deceased parent to figure out how to sell a home that has a reverse mortgage on it. With that said, if you want to learn how to sell a house with a reverse mortgage, then continue to read on.

to sell your home

  1. Difference Between Selling A House With A Reverse Mortgage– One of the first things you should do when you want to sell a home with a reverse mortgage is to look at mortgage documents. The key is to figure out what you will need to pay should your home sells, and this includes interest and fees. If you don’t know what the amount you have to pay is, then contact your lender because they will provide a quote and then you will know how much the total payout will be.

 

After finding out how much you need to pay,  compare that figure to the estimated worth of your home, and consider speaking with an experienced Realtor, who will be able to provide a detailed report on how much your home may sell for. Your market and comparable sales in the neighborhood are some factors that play a role in how much the home will sell for. The main goal is to sell the home for more than the reverse mortgage amount because you don’t want to sell your home for an amount that is less than the balance of the mortgage.

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  1. How To Sell Your Home– After you figure out whether or not it is viable to sell your home, you can begin the sales process. There are a few things you should do. One of those things is hiring a real estate agent, which will be discussed in the next section.

 

 

 

Andrew Smith- Royal LePage Kelowna

 

  1. Hire A Real Estate Agent– Sure, you can sell your property on your own, but this requires a lot of work on your part. You can hire a real estate agent to handle everything, and they can help you sell your home for as much as possible, all without pushing away potential home buyers due to the price of the home. A good agent will know how to generate attention, and they will know what to do to spread the word about your home, which can result in you selling your home much sooner rather than later.

 

Contact numerous realtors before you hire one because you want to choose the right agent, and you want to make sure you hire an agent that has plenty of experience with selling houses. This is because putting a home on the market is a big deal, so take the time to verify any references the agent provides you and make sure you find an agent that sells homes for almost the full asking price or for the full asking price. The goal is to find an agent that can help make everything easier for you.

 

Choose a real estate agent with excellent communication skills because this is really important. Meet with a real estate agent that responds quickly to any questions you have before you even hire them. If an agent doesn’t respond to you right away, then the chances are they will not respond to you quickly if you hire them. The quicker a Realtor responds, the better off you will be if you hire them.

 

A good Realtor will have a solid online presence. Pay attention to the presence they have online. A good agent will have excellent photos and they will have great listing descriptions, and they may offer video tours of the homes they are currently trying to sell.

 

Keep in mind that homes with reverse mortgages tend to take a bit of time to sell. This is why hiring a real estate company makes sense. Just remember that there are thousands of agents out there, so take your time to research different ones and then hire the one you think will provide you with the most benefits.

how to prepare your home

  1. Preparing Your Home– When the time comes to sell your home, you will want to attract as many potential purchasers as possible and this is why you should work with a real estate agent. They know what you need to do to attract buyers. There may be specific areas of the home that need work done, and a good sales person will be able to point out the areas to focus on making repairs.

 

Put yourself in the shoes of potential buyers, and this means taking a look around the home and figure out what work is needed to update it. Knowing what areas to improve can aid selling your home. As previously mentioned, a good real estate agent can help you with this.

 

The truth is that people want to buy a home that is in turnkey condition because most people don’t want to do work on a new purchase, and this is due to various things such as having a busy work schedule or busy life in general. If you can do it, then you should make small repairs and small improvements. The key is to make your property as marketable as possible, and a real estate agent can help you with this. The more attractive your home is, the better off you will be.

sell your home

  1. Keep Residence In Good Shape– When the time comes to show your property, you want to make sure it is clean and looks great. You can hire a professional cleaner to make your home spotless so that it will be in good shape for future showings. The right buyer can walk through your door at any given minute.

 

Make sure the house is free of odors if you own pets. Yes, we may love our pets, but many potential buyers don’t like the smell of the odors they give off.

 

If you have pets, then consider letting a friend watch them on days you know you will be showing the property. Some people may not like to see your pets lounging around the home. However, if you already know that the potential buyers don’t mind pets because they have some of their own, then you probably don’t have to make your pets scarce for showings.

 

  1. updating your homeNot Updating Your Home-A real estate agent can help you update your home. Some of these things may include wallpaper and old carpets. If you have outdated items in your home, then this may make it harder to sell it.

 

 

There is a good chance a real estate agent will point out what needs to be replaced if you want to make a quick sale. Sure, you may not like what an agent says about changing your wallpaper, rugs or other things in your home, but is a quick sale is not a priority then don’t make any updates to it.

 

Repairs that should have been done may have been ignored, but if you want to sell your property that has a reverse mortgage, then you should put effort into making general repairs. Plus, a home inspection can either make or break a potential sale, so it is important to make general repairs. Many homes fail a home inspection, and this is why you should be as prepared as possible.

Conveyancing Lawyer

  1. Verify If You Need A Lawyer– You may have to work with a real estate agent if you want to sell your home and if it has a mortgage on it. You can speak with an agent to figure out if you should hire a real estate attorney. Getting legal presentation makes perfect sense when you’re selling or buying property.

 

 

 

Selling your house

  1. Listen To The Agent– You need to choose a real estate agent you truly trust because when you work with a Realtor, then you want them to get you the best results. Also, it’s important to take your agent’s advice into consideration, and this means you should make updates to areas of your home that the agent tells you to update. Remember, a real estate agent is a professional, and the chances are they know exactly what needs to be done to increase the chances of a home being sold, so don’t be stubborn and try to do things on your own.

 

After your home sells and you have paid everything off, you can enjoy the profits. Now you should know more about selling a home that has a reverse mortgage on it. Keep what you have just learned in mind and you should be fine.

 

Selling a home with a reverse mortgage can be challenging, and it can seem impossible to do at times, but the truth is it doesn’t have to be hard. As previously mentioned, this article can help you sell your home, even if you have a reverse mortgage on it. Just remember, your best bet is to hire a real estate agent, and you may want to consider hiring a lawyer that specializes in real estate, bt one thing you do want to do is to hire a good real estate agent. If you do that, and you keep this article in mind, then sooner or later you will sell your home, and you can enjoy the money you make from the sale.

Andrew Smith - RealtorLiving in Kelowna,
Andrew Smith
Royal LePage Kelowna
1-1890 Cooper Rd, Kelowna, BC V1Y 8B7
250-979-8066 or Toll Free 1-877-330-5884
Follow me on Twitter @smithap01

Cal for more information https://www.okanaganbc.com/ or view here Okanogan homes for sale