With the month of February safely in the rear view mirror we can collectively breathe a little easier with two reasonably good months in the books. The average sale price last month for residential houses was $462,500 which is up from $433,900 recorded February 2009. The median sale price in February '10 was $429,000 which represents a 9% increase from last year. We still have too much inventory on the market, especially condominiums but well priced homes are selling in less than 90 days.
Lot sales are making a comeback with 16 lots selling last month. February 2009 only saw 3 sales so builders are showing some confidence early on.
High end condominium apartments are not selling these days. I can't believe prices haven't come down in this particular segment of the market yet after looking at the data. Currently there are 118 condo apartments for sale priced over $500,000 and only 1 (not a typo) sale so far this year. Something has to happen sooner or later so so many units for sale and so few buyers. Stay tuned.
In the popular $300,000 to $500,000 market, there are only 600 residential single family houses for sale in Kelowna right now and we've recorded 174 sales for the first two months of the year. Things are looking bright for Kelowna's middle class with two strong months in what is usually a slow time of the year.
Thanks for reading and Jo or I would love to hear from you. We can be reached toll free at 1-877-330-5884 or www.okanaganbc.com .
Taken out of context, it would appear that the Kelowna real estate market is on fire and the smartest thing in the world would have been to buy a home last January.
There were 148 residential single family home sale in Kelowna last month (January 2010) compared to 51 sales January 2009. The average sale price increased from $412,800 in January '09 to $519,900 this January. On its own this is sensational jaw dropping news however long time observers of the Kelowna housing market will know that January 2009 was the worst month as far as anyone can remember in terms of unit sales. Thank goodness prices stopped falling that month because it would have psychologically disheartening to have had the average sale price drop into the $300's. It is encouraging to see prices increase by over $100,000 in a year though but we have to be level headed about this.
This trend of month-to-month increases will likely continue all year (certainly for the first 6 months) even with new mortgage rules and the Harmonized Sales Tax staring us down.
Contact Jo-Ann or I if you want to receive info on current foreclosures, Canada Mortgage and Housing forecasts or HST. Thanks for reading.
Andrew Smith
When numbers don't say what they ought to be saying it's either an anomaly to be sorted out later or the beginning of a trend. The first two weeks of housing numbers have been out of the ordinary compared to last year.
The Million Dollar Home Buyer Has Woken Up, Dusted Himself Off and Is Ready To Open Up His Cheque Book
There have been six (6) sales during the first two weeks of residential homes over $1 million. A million dollar house sale isn't an unusual occurrence in these parts except it took us until mid May last year to get to six and now we've reached that number while many agents are just getting back from Winter vacations.
There have been 62 sales so far this year compared to only 14 at this point in 2009 which isn't that remarkable except be mindful that January buyers tend to be local in town types as opposed to Albertans (who come to town
later) who have traditionally pushed our prices higher. There are over 1,300 homes for sale right now.
As for condominiums there were 29 sales during the first two weeks of '10 compared to 14 last year. There was 1 sale over $1million which is encouraging for the high end market since we didn't sell a million dollar condo until September 30th last year.
I haven't encountered anyone recently, in our out of the real estate industry, who has been able to answer the following....What is the average asking price of a residential home in Kelowna right now? Go ahead....take a stab at it.....
Answer is $932,650
A gold star to you if you were even close to guessing this number.
The real estate story of the year has to be the number of highly priced homes that continue to go unsold but remain on the market with hopes that high end buyers get off their couches and look for their chequebooks.
Right now, there are 1,450 homes for sale in Kelowna and 397 of them are priced over $800,000. The $800,000 plus segment of the marketplace generated 108 sales this year which translates into over 9 home sales a month. This means there is a 3 1/2 year supply of homes for sale right now in higher end communities. Remember, 6 months of housing inventory is considered a balanced market.
Back here in the real world, where the rest of us live, there are only 740 homes for sale in the $300,000 to $600,000 price range and 1,620 recorded sales this year. This is terrific news. If this doesn't mean the recession has been wrestled to the floor, then it's certainly been dealt a blow to the solar plexus. This works out to a reasonable 140 sales per month and a 5 month supply of homes making this segment of the market a "sellers market".
Also, there are now 40 foreclosures for sale which is higher than the usual 10 or 15 me might normally see. 17 of these homes are priced under $400,000 and the rest over. Let me know if you want the list.
A.S.
With housing dwindling inventory and the number of home sales increasing the chances of a home priced under $500,000 selling in a reasonable period of time are good. On the other hand, home owners with properties priced over $1 million are in for a long dark winter if planning on putting that home on the market. Here's why...
There are 1,625 homes residential homes for sale in Kelowna right now including 437 priced over $1 million and 312 priced under $400,000. Through November 1st there were 97 homes selling in the million dollar plus category meaning with an average of 10 homes selling a month there's about 43 months of inventory available (3 1/2 years). Home owners in this segment of the market are in need of further price corrections before moving trucks rumble through their neighbourhoods again.
On the other end of the housing spectrum, there have been 783 home sales for homes priced below $400,000 through the first 10 months. With 312 homes for sale in this price range there is a 4 month supply available. With six months of inventory considered a balanced market, the sub $400,000 market in Kelowna has become a seller's market.
The average sale price in October ('09) was $518,600 with 250 homes selling. This is up from October 2008 when there were 97 homes selling at an average price of $458,500.
Sobering news for homeowners trying to sell in the $700,000 plus range this quarter. There are currently 1988 residential homes for sale in Kelowna (and area) with an average asking price of $878,000 (not a typo). The average sale price for the first three quarters this year was $481,000 indicating the disconnect is continuing and widening with what purchasers believe homes are worth and actual values. Having almost 2000 homes on the market is well above where it ought to be and we will likely see a lot of listings come off MLS as we approach Winter.
There were 684 residential sales for the third quarter this year which is an improvement over the 441 sales recorded for the 3rd quarter last year. Q3 2008 was when the wheels fell off the bus but it looks like low interest rates are finally bringing first time buyers into the marketplace. The out of town high end investor hasn't decided to come back to the party yet so most transactions are from local buyers. The average sale price for the third quarter was $499,100 down from $530,000 for Q3 2008.
There's a lot going on in Kelowna over the next little while with the Okanagan Fall Wine Festival starting next week and then the Okanagan International Marathon will be happening during Thanksgiving.
Topic 1. Jo and I are on Twitter. Follow us at www.twitter.com/smithap01 . We have been providing CMHC market updates, mortgage rate changes, our open house schedules and other interesting tidbits so be brave and follow us.
Topic 2. Is it just me or does it seem as though all of Kelowna's roads are under construction just in time for back-to-school season? Getting two kids to school in the morning is either a 10 minute walk, 5 minute bike ride or 20 minute car ride assuming someone feels sorry enough and lets me merge onto Gordon. Older schools just weren't designed for 500 cars doing touch-and-gos twice a day.
Topic 3. Real Estate News. Are Kelowna home owners allowed to breath a sigh of relief yet? Did we slay the recession monster or is it going crawl up off the ground and subject us to another long, cold, dark winter?
August 2009 saw 209 residential sales with anaverage sale price of $521,000. Those in the "the glass is half empty" crowd will look at August 2007where we recorded 311 sales while the "half full" crowd will look at the
samedata and compare it to August 2008 when we recorded 139 sales. I think
August 2007 and August2008 were both unusual months and this past August represents a normal month with few surprises. Mercifully, lakeshore homes are selling again as our market recorded 8 sales last monthover $1 million.
The average sale price last month was $521,000 up from$504,000 in July and
$486,000 in August. The reason being the 8 lakeshore homes selling skews
the averages higher. Everyone is certainly in "wait and see" mode as to weatheror not the high end purchaser has awoken after a long slumber or if last month was just an anomaly. Stay tuned.
Until next time,
Andrew Smith and Jo-Ann McLellan
Royal LePage Kelowna
tel 1-877-330-5884 or 250 979 8066
www.okanaganbc.com
Follow us at www.twitter.com/smithap01
Are Kelowna home owners allowed to breath a sigh of reliefyet? Did we slay the recessionmonster or is it going crawl up off the ground and subject us to another long,cold, dark winter?
August 2009 saw 209 residential sales with anaverage sale price of $521,000. Those in the “the glass is half empty” crowd will look at August 2007where we recorded 311 sales while the “half full” crowd will look at the samedata and compare it to August 2008 when we recorded 139 sales. I think August 2007 and August2008 were both unusual months and this past August represents a normal monthwith few surprises. Mercifullylakeshore homes are selling again as our market recorded 8 sales last monthover $1 million.
The average sale price last month was $521,000 up from$504,000 in July and $486,000 in August. The reason being the8 lakeshore homes selling skews the averages higher. Everyone is certainly in “wait and see” mode as to weatheror not the high end purchaser has awoken after a long slumber or if last monthwas just an anomaly.
There are only 18 single family homes for sale in LakeviewHeights, Dilworth Mountain, Glenmore/North Glenmore and Rutland priced under $350,000,which make pickings slim for buyers in these traditional middle class neighborhoods. Of the 180 homes for sale in UpperMission there are only 2 for sale under $450,000 in this tony upscale neighbourhood. There is still too much inventory in this city in the $600,000 and uprange with 858 homes on the market.
The condominium market in Kelowna is off life support andshowing a strong pulse with the number of units selling in our marketplace increasingevery month this year from a dreadful 41 sales in January to 165 in July. Here’s a monthly breakdown of condosales...
January 41
February 51
March 84
April 109
May 135
June 148
July 165
We must take caution because there are still 1,614condominiums for sale and that number doesn’t include new construction. The good news for sellers is that unitsales are gaining momentum and sharply priced units in popular areas likedowntown, Glenmore, hospital area, KLO are finally selling in a reasonable timeperiod instead of going weeks without showings.
The median sale price for the first 6 months of this yearwas $270,000 which is down from the $292,000 recorded for the same period in2008. In an effort to keep thingsin perspective, the median sale price for condos sold during the first half of2007 was $257,000 which means consumer confidence is returning to thissegment of the marketplace.
What a month we have been having. What are the chances of having four forest fires in a single weekend? Thank goodness they're all contained now and only three homes were lost.
With the first half of the year complete, the Kelowna housing market continues to rebound from the long, cold, dark Winter we lived through. The most promising statistic for everyone in my industry is the number is homes selling is increasing every month indicating consumer confidence is back and buyers are jumping off the fence and into the housing market again. So far this year, the number of monthly sales are as follows...
January 60 homes sold
February 91
March 141
April 170
May 216
June 252
Before anyone gets too excited about this, take not that there are still 2,112 residential homes for sale right now in a marketplace that generates about 200 sales per month.
Overall things are terrific for those with homes price under $500,000 but still uncertain for those trying to sell homes priced over $800,000. Over 25% (523 homes) of our current inventory of homes for sale are priced over $800,000 yet there have been only 46 homes sold in this price range. Well priced homes in the $800,000 to $2,000,000 are getting few showings. On the other hand, homes priced in the $250,000 to $500,000 range are selling once priced properly which wasn't necessarily the case six months ago. This is likely the result of the loss of the Alberta buyer and increased dependance on local first time and move-up buyers to sustain our housing market.
There were 930 sales during the first half of this year with an average sale price of $467,000 which is down from the $500,000 we were getting used to in the early part of 2008 but significantly higher than the $431,000 recorded in the first quarter of this year.
We hope you're enjoying your Summer and will be in touch soon.
Andrew Smith and Jo-Ann McLellan
Time to take a moment or two and look at condominiums and how they have been selling this year. In most areas of the country condominiums are sold to either first time buyers or last time buyers. Here in Kelowna we also sell to Albertans and children of Albertans.
As of today, there are 1,581 active condominiums for sale in Kelowna ranging in price from $129,900 up to $5.5 million. So far this year (thru May 31st) there have been 410 condo sales at an average sale price of $290,800. Compare and contrast this with the first 5 months of 2008 where there were 682 sales at an average sale price of $320,000. All in all, if you’re a condo owner in town, I can’t imagine any further losses in equity since we’ve survived the slowest time of the year (Winter) and prices have increased (albeit marginally) every month since February.
2009 Units Sold Average Price
January 41 $287400
February 51 $275,000
March 81 $279,800
April 105 $284,300
May 132 $309,800
Phew! Glad To Hear This Recession Everyone Talking About Is Finally Over
Not so fast. Let’s take a look back to May 2007 when we recorded 213 condo sales at an average price of $311,000. We’re quite a ways from 200 monthly sales which should cause for concern with almost 1,600 units for sale AND these numbers don’t include new construction projects. The good news though is that we’re in the middle of a steady climb in both sale prices and total number of sales. I don’t think we will see average condo sale prices drop below $300,000 again so this might just be the right time to consider purchasing.
Regards,Andrew Smith
"Your GPS to Real Estate"
Smith McLellan Group
Royal LePage Kelowna
Kelowna BC
View all our Listings at www.OkanaganBC.com
There are currently 2080 residential houses for sale in Kelowna ranging in price from a low of $199,000 up to a high of $18,000,000. If you own a high end luxury home in the Central Okanagan you might want to sit down for the rest of this.
Out of the 2080 homes for sale right now, there are 766 priced over $800,000 which represents 37% of our inventory. Compare and contrast this with what's currently going on in the housing market where there have been 366 residential sales this year and only 14 homes selling over $800,000. After double checking my math that's 3.8% of all sales. If our market is generating 5 sales a month in this exclusive price bracket there's currently a 10 year supply of homes. Don't get me wrong, I've been in many of them and they're all beautiful, well appointed with nice fixtures, terrific neighbours close to good schools but there's a widening disconnect in our market with buyers giving these homes a collective pass.
The good news is the rest of the market is active and clicking on all cylanders (ok....almost all cylinders). There were only 60 sales in January, 90 in February and 141 in March. Prices have increased monthly as well with $420,000 in January, 425,000 in February and $438,000 in March. Unless something cataclysmic happens, April will outpace March so all arrows are pointing up. We aren't seeing average sale prices in the $500,000 plus range like we were accustomed to in previous years but we've certainly dusted ourselves up off the carpet and are swinging again.
The really big news though are mortgage rates. If you negotiated a prime less 1 point variable rate you now have a rate less than 2%! Borrowing for a home has never been more affordable and with the bottom of the Kelowna housing market two months behind us, renters who are still sitting on the fence are out of logical reasons to be on the outside looking in.
We're going to allow ourselves to be optimistic with condominiums also. The pattern with residential houses repeats itself here with January, February and March reporting average sale prices of $262,000, $267,000 and $274,000 respectively. The number of condominiums selling for these months has been increasing also with 67, 74 and 113 units each month.
Regards,
Andrew Smith
"Your GPS to Real Estate"
Smith McLellan Group
Royal LePage Kelowna
Kelowna BC
View all our Listings at www.OkanaganBC.com
There are currently 1,954 residential homes for sale in Kelowna ranging in price from $219,900 for a 2 bedroom, 2 bathroom 1,100 square foot home on Laurel in Rutland up to an asking price of $18,000,000. There are just over 400 homes available in the $350,000-$450,000 range which is were typical first time buyers with mortgages and minivans live. With interest rates at record lows and home prices looking like they’re inching up again, the “wait-and-see” crowd need to act otherwise they’ll find themselves in the “waited-too-long” crowd. There are still only 18 foreclosures on the market.
Through the first 11 weeks of this year, there have been 209 residential sales in Kelowna (and area) with an average sale price of $436,500. Compare and contract with the first 11 weeks of 2008 where we saw a $523,000 average sale price with 454 solds. What really stands out is the absence is the high end purchaser so far this year. There were 8 homes that sold over $1 million this time last year including one that sold over $7 million. So far this year there has only been 1 sale over $1 million which is really skewing our numbers.
Always trying to end on a positive note, the good news is that the market is clearly increasing, albeit slowly. The average sale price in January was $420,000, February was $425,000 and through 18 days of March $448,000. I don’t know if we will see average sale prices escalating to the level we saw early last year but there’s certainly a lot more activity these days in areas like Shannon Lake, Rutland and Glenmore. Let’s hope this isn’t a blip and this upward trend continues.
Regards,
Andrew Smith
"Your GPS to Real Estate"
Smith McLellan Group
Royal LePage Kelowna
Kelowna BC
View all our Listings at www.OkanaganBC.com
So far this year, through the first two months, there have been 144 residential home sales at an average sale price of $429,988. January saw 54 residential transactions with an average sale price of $420,000 while February saw 90 homes sell at an average price of $435,000. It's encouraging to see both the number of homes selling and prices increase, albeit marginally, this year and hopefully this will continue. It's certainly something to build on.
There certainly is a disconnect going on between Kelowna home sellers and potential buyers. While there has been equity erosion over the past ten months, many home buyers are of the mindset that Kelowna sellers are prepared to accept any offer presented to them and this just isn't the case. Kelowna remains a blue chip real estate market and continues to outperform the overall Canadian housing market.
A quick word about foreclosures...
In California, during the Fourth quarter of 2008 there were 80,595 foreclosures in that state. We all know the reasons by now which include adjustable rate mortgages, NINJAA (no income, no job, no assets) loans, no documentation loans, interest only loans etc. This has clearly created unimaginable hardship for each family involved, but 18 months into the U.S. sub-prime crises and there are only 15 foreclosures here in Kelwona. 15! There are so few, I can just about type all of them out while holding my breath...Camelot, Saucier, Carruthers, Lakeshore, Clement Quail, Westpoint, Fitzpatrick, Spyglass, Warbler, Mission Ridge, Feedham, Woodridge, Vintage Terrace and Roth.
With our neighbours from Vancouver, Alberta and USA largely staying out of the Kelowna housing market, we will continue to be dependent on local buyers which means less activity in the luxury condominium sector and the vacation home market. There has only been one sale above $1 million this year which is skewing the average price downwards. All other residential sectors in all areas of the city have active housing markets and sharply (ok, really sharply) priced homes continue to sell. The good news is that a lot of commerce is still taking place and there are a lot of unbelievable buying opportunities right now. Let me know if you would like specific information on current deals especially luxury condominiums and lakeshore properties which are becoming plentiful.
Andrew Smith
YOUR GPS TO REAL ESTATE
Smith McLellan Group
Royal LePage Kelowna
Kelowna BC
www.OkanaganBC.com
Here’s a quick snapshot of today’s housing market. Fresh off the presses.
Number of Residential Single family listings 1,878
Number of Condos for sale 1,671
The number of condominiums for sale has NEVER exceeded the number of residential houses but we’re within 200 units right now. Stay tuned.
Residential sales this year 133
Residential sales last year (thru Feb 26) 321
Average sale price this year $430,643
Average sale price last year (thru Feb 26) $500,289
Number of condo sales this year to date 84
Number of condo sales last year to date 242
Average condo sale price last year $289,023
Average condo sale price last year (thru Nov 26) $322,278
There certainly is a disconnect going on between Kelowna home sellers and potential buyers. While there has been equity erosion over the past ten months, many home buyers are of the mindset that Kelowna sellers are prepared to accept any offer presented to them and this just isn’t the case. So, who’s to blame?
In California, during the Fourth quarter of 2008 there were 80,595 foreclosures in the state. We all know the reasons by now which include adjustable rate mortgages, NINJAA (no income, no job, no assets), no documentation loans, interest only loans etc. This has clearly created unimaginable hardship for each family involved, but 18 months into the sub-prime crises and there are only 15 foreclosures here in Kelwona. 15! There are so few, I can just about type all of them out while holding my breath...Camelot, Saucier, Carruthers, Lakeshore, Clement Quail, Westpoint, Fitzpatrick, Spyglass, Warbler, Mission Ridge, Feedham, Woodridge, Vintage Terrace and Roth.
Until our neighbours from Vancouver, Alberta and USA straighten themselves out the Kelowna housing market will be dependent on local buyers which means less activity in the luxury condominium sector and vacation home market. All other residential sectors in all areas of the city have active housing markets and sharply priced homes continue to sell. It might be twenty years be before we ever see buying opportunities like this again. Let me know if you would like specific information on current deals especially luxury condominiums and lakeshore properties which are becoming plentiful.
Andrew Smith
Your GPS To Real Estate
The Smith McLellan Group
Royal LePage Kelowna BC
www.OkanaganBC.com