Kelowna Market Update


Yes, we are still very much in a buyers market. 125 homes or 8.4% of the inventory (1,481) of single family dwellings sold last month. This means it would take about one year to sell all the homes if no additional homes would come on the market.

Overall unit sales and sales volumes in the Central Zone dipped by 1.07% to 277 units ($106.4 million) compared to 280 ($135.5 million) last October, and were down 6.41% compared to the 296 units sold in September. Total residential sales last month slipped by 0.78% to 253 units compared to 255 last year, and were down 8.99% from 278 in September. Single family home sales of 125 units showed a 10.17% drop compared to 139 last year, and were down 13.79% from the 145 homes sold this September. October’s inventory of 4,761 units was up 3.37% compared to 4,606 in 2010, and the 834 new listings for the month rose 10.17% over 757 last year.

Average Prices And Their Meaning
September Average Price Up $517,864. October Average Price Down $463,503.
In September 12 properties including condos and acreages sold here in Kelowna over 1 Million Dollars, it pushed the average price up to $517,864 compared to October only 7 properties changed hands over 1 Million Dollars and the average price came down to $463,503. People often think their homes go up and down based on the average price, but there will always be month-to-month fluctuation in prices. Average prices are particularly susceptible to change depending on whether more higher priced or lower priced properties sell in a particular month. Ultimately the average price only tells us what people are paying and not what kind of a home they are buying

CMHC Kelowna Housing Market Outlook 2012 – Summary
Expect existing home prices to edge up by 3% as demand improves and the supply of listings is drawn down later next year.
Demand for new and existing homes is forecast to strengthen in 2012. Favourable mortgage interest rates coupled with stronger employment growth will support modest growth in demand for housing next year.
Sales of existing homes are expected to increase 11% in 2012. Home buyers will continue
to benefit from an ample supply of listings available for sale.
Kelowna area housing starts are forecast to increase 18% to 1,125 homes in 2012.

This is still a great time to buy real estate!

Remember, Good Deals Are Not Found, They Are Made.

Major Cities Report

Victoria: Real Estate Activity Increases In October
The average price for single-family homes sold in Greater Victoria last month was $595,836, down from $622,393 in September. MLS® sales last month included 260 single family homes, 145 condominiums, 46 townhomes and 10 manufactured homes. 14 single family homes sold over $1 million in October.

Vancouver: Greater Vancouver At Lower End Of Balanced Housing Market
With a sales-to-active property listings ratio of 15%, the Greater Vancouver housing market continues to hover at the lower end of a balanced market and has been trending in that direction over the past five months. The MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 7.5 % to $622,955 in October 2011 from $579,349 in October 2010. However, since reaching a peak in June of $630,921, the benchmark price for all residential properties in the region has declined 1.3%. Sales of detached properties in October reached 974, which represents virtually no change from the 976 detached sales recorded in October 2010, and a 34.5% decrease from the 1,487 units sold in October 2009. The benchmark price for detached properties increased 11% from October 2010 to $884,778, but decreased 1.3% compared to the previous month.

Calgary: Calgary’s Housing Market Set to Outpace 2010
Consumers are feeling more confident about the local real estate
market.
Single family home sales totaled 988 for the month of October 2011, an 11% increase over October 2010, but continue to remain well below historical levels. Year-to-date sales totaled 11,503, a 10% increase over last year. The average price of single family homes for the month of October 2011 was $455,399.

Edmonton: October real estate market slower, but not at all scary
In October the average price of a single family detached home dipped lower than the two previous years.The previous month SFD average price $362,897 (down 3.4% m/m). The balanced market continues as evidenced by the same number of residential sales in October 2011 and October 2010. There were 1,170 residential sales in October compared to 1,169 in October 2010. Listings dropped from 2,218 in October 2010 to 2,166 this year.

Toronto: Pace of Home Sales Remains Brisk in October
Sellers’ market conditions remain in place in many parts of the GTA. The result has been above-average annual rates of price growth for most home types. Greater Toronto reported 7,642 home sales through the TorontoMLS® in October 2011. This represented an increase of 17.5% compared to the 6,504 transactions reported in October 2010. The average selling price through the TorontoMLS® in October was $478,137 – up 8% compared to October 2010.

Saskatchewan
Special Highlights Of Interest

Speculators are betting big on Saskatoon’s industrial market, starting 400,000 square feet of new space so far this year.
Royalty Developments, the largest private-sector owner of undeveloped land in downtown Regina, has launched plans for a 16-storey office tower at the corner of Rose Street and 12th Avenue in the city’s financial district.
Regina has the least amount of office space available for rent in Canada, according to a report from commercial realtor Avison Young, which says "strong economic and population growth" in Saskatchewan will help keep the capital city office sector tight.
Receding flood waters have allowed drilling rigs to ramp up production in the southeast Saskatchewan oil patch, with about 50 rigs active near Estevan, Stoughton and Weyburn.
Climate changes combined with rising food prices are delivering higher prices and a brighter future for Prairie farmers

Regina:
Brisk October Housing Market Sets New Highs
There were 342 sales reported during the month in all geographic areas, up 26% from 2010 when 272 sales were reported. This represents a new high for the month of October, exceeding the previous record of 305 set in 2007. The average sales price in all market areas for the month was $282,313, a new high for October and an increase of 10% from $257,268 posted in 2010.

Saskatoon:October 2011 20% more sales than 2010
In the month of October 309 residential properties changed hands which is a 19% increase over October 2010 when 260 properties sold.
The average residential selling price in October this year increased to $327,245.00 from $294,133.00 in October 2010 reflecting an 11% increase.