The heat has finally arrived!

KELOWNA: The Kelowna housing market gained additional strength last month with a significant increase in sales along with firm prices. A total of 356 homes and other properties sold in May through the Kelowna Real Estate Board’s MLS®, down 6% from the 380 sales in May of last year. Prices in Kelowna have been stable around the $450,000 mark in the last few months, so house hunters should be making their buying decisions sooner rather than later to ensure that their buying power is not eroded by the rising prices.

Listings did not increase last month either which, increased our sales to listing ratio to 11%.  We need to also be cautious about declaring a firm bottom at this time, but the improvement in recent months is an encouraging shift. All signs indicate we are moving up to a more balanced and stable market. Consumer confidence is improving, prices are holding steady and inventory is stabilizing. We think some buyers are trying to predict the bottom of the market. The reality is, if you spend too much time trying to anticipate the bottom, you miss out on the choice and selection, and maybe end up paying more.

Great deals can still be made!

Major Cities Report
Victoria: Victoria housing market gains strength; up 17% from the 747 sales in April and up 14% compared to the 770 sales in May of last year. The average price for single family homes sold in Greater Victoria last month was $573,442.

Vancouver: Increased demand steadies housing market in Greater Vancouver; an increase of 17.4% from the 3,002 sales recorded in May 2008, and an increase of 18.9% compared to last month. Since the beginning of the year, the benchmark price for all residential properties in Greater Vancouver has increased 4.5% to $506,201 from $484,211. However, home prices compared to May 2008 levels are down 10.9%.

Kelowna: The Kelowna market gained momentum; in May, 189 homes sold, up 20% over April. This was still down 5% over May 08 and down 75% from May 07 (the highest ever). The average price for single family homes sold in Kelowna in May was stable at $449,867.

Calgary: Market is showing year over year gains showing an increase of 23% from 1,290 sales in April 2009 and an increase of 16% from May 2008. The average price of a single family Calgary metro home in May 2009 was $436,427, showing an increase of 2% from April 2009, and showing a decrease of 9%from May 2008.

Edmonton: Housing sales continue to trend upward over 17% as compared to the previous month and up 18.7% over the same month last year. Single family homes sold on average for $367,672 in May; up 4% from April, but still 4% lower than a year ago.

Winnipeg: Sales in May 2009 were more restrained than the last few years but that does not mean the MLS® market performed badly, unit sales were down 13%.

Toronto: May housing resales were higher than last year. Up almost 2% from May 2008 the median price was $337,000, from the $338,000 recorded during May of 2008.