Kelowna Market Update


Best February in number of sales of single family homes in Kelowna since 2008. If we look back, we can see a lot of economic predictions about the real estate market. The negative forecasts have been predicting a 40% decline, or more, in house prices while the positive ones have been predicting a more or less stable market for Kelowna. Now after 4 years of basically doom and gloom, we are seeing the first signs of improvements. In review, yes our prices did drop, basically by two years from the high of 2008 down to the 2006 level, or 20% more or less. Inventory is getting absorbed by the increase in population (10.8% last 6 years), and it looks as if we are on our way back to a balanced market; a moderate but steady upward trend. “Supply and Demand regulates the price”.

Total sales for the Central Okanagan (Peachland to Oyama) for the month rose 16.0% to 289 units compared to 249 in February 2011, and improved by 58.0% over the units sold last month (183). Total residential sales for February were up by 11.4% to 263 units compared to 236 sold last year, and jumped 39.2% from 189 in January. Single family home sales (130 units) remained similar to last February (129), but climbed 27.5% compared to last month (102). Townhouse sales in February showed a 113% improvement over 2011 (to 49 from 23), and were up 96% from units sold in January (25). While inventory for the month (4,500 units) was up 1.4% from 2011, the 954 new listings for February dropped 6.7% from the 1,022 last year at this time.

Census

In 2011, the population of Kelowna census metropolitan area (CMA) was 179,839, representing an increase of 10.8% from 2006. This compares to the national growth of 5.9% and to the average growth among all CMAs of 7.4%. In total, there were 74,942 private dwellings occupied by usual residents in Kelowna in 2011 a change representing 12.0% from 2006.
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Tax Credits – First-time New Home Buyers’ Bonus
The Provincial Government recently introduced the enhanced HST new housing rebate, first‐time home buyer’s bonus, and grant for new second and recreation homes programs.
Subject to legislative approval, the proposed bonus is a one-time refundable income tax credit worth up to $10,000.
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Okanagan Lake looking towards Peachland and West Kelowna by Colin Krieg Link to flickr page

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 Market Reflects Consumer Confidence
February’s sale volume was virtually identical to that of February 2011, but the average price softened by 5% for single family homes over February 2011. The average sales price for a single family home in Greater Victoria was $579,985, with a six-month average of $594,027, showing a corresponding decrease of 4.7% over February 2011. 14 Single Family Dwellings sold over $1 million.

Vancouver: Greater Vancouver housing market trends near long-term averages as spring market approaches
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver reached 2,545 on the MLS® system in February 2012. This represents a 61% increase compared to the 1,577 sales recorded in January 2012, a decline of 17.8% compared to the 3,097 sales in February 2011 and a 2.9% increase from the 2,473 home sales in February 2010. The MLS® HPI benchmark price for all residential properties in Greater Vancouver currently sits at $670,900, up 6% compared to February 2011 and an increase of 0.9% compared to January 2012. The benchmark price for all residential properties in the Lower Mainland is $601,300, an increase of 5.5% compared to February 2011.

Calgary: Sales Activity On The Rise Throughout The Calgary Region
Calgary and area sales growth pushed February total residential activity up by 11.6% compared to February 2011, mainly due to increased activity in the surrounding towns. Pricing showed modest improvement in February 2012 over January, with the single-family MLS® Home Price Index increasing by 1.0% after several months of relatively flat pricing. Single-family prices rose by 3.2% over February 2011. While prices continue to remain below peak levels, the improvement points to stable price growth.

Edmonton: February Housing Prices Rise with Sales
Edmonton reports that housing prices were up in all housing categories in February in the Edmonton area. The all-residential average price at $329,911, was up 3.7% from January and up 5.7% when compared to the same month last year. In February, the average price of a single family detached (SFD) home was $375,268.

Toronto: Tight Market Pushes the Average Price above $500K.
Greater Toronto REALTORS® reported 7,032 sales in February 2012 – up 16% compared to February 2011. New listings were also up over the same period, but by a lesser 11% to 12,684. The average selling price in the TREB market area was $502,508 in February – up 11% compared to February 2011.