Kelowna BC Real Estate

2011-02-08T16:32:00.001-08:00

‘Wild card’ props up Canadian housing markets

over past decade

Inventory remains key to stability in 2011

Tighter inventory levels helped to make the last decade one of the healthiest periods on record for Canadian real estate, insulating markets in major centres from the peaks and valleys characteristic of past decades, according to a report released by RE/MAX.

The RE/MAX Housing Barometer Report measured monthly sales-to-new listings ratios in 18 major centres across the country from January 2000 to December 2010. The report found strong seller’s/balanced conditions prevailed for much of the time frame, prompting significant gains in housing values. The lone exception was when the market dipped into buyer’s territory during the latter half of 2008 and early 2009. However, fewer listings served to offset diminished demand and provided greater stability. Average price increases from 2000 to 2010 ranged from an annually compounded rate of return of 4.82 per cent in London-St. Thomas to a high of 9.56 per cent in Regina. The national average was 6.82 per cent. By far the tightest market in the nation was Winnipeg, where seller’s ruled the roost for 85 per cent of the decade, followed by Hamilton-Burlington (67 per cent), Regina (63.6 per cent), Kitchener-Waterloo (59.8 per cent) and Edmonton (57.5 per cent).

While population growth, pent-up demand, and a strong economy also contributed to the run up in activity, inventory played a major role in price growth. The recent recession was case in point. Supply remained largely in check, keeping prices on the upswing despite softer demand. That is expected to continue, given an improved global economic picture, lower unemployment rates and rising consumer confidence—all of which have buoyed home buying activity since November. While sales figures are expected to be slightly off 2010’s heated pace, housing values are forecast to continue to climb in Canadian real estate markets in 2011—with most a direct result of lower listing levels.

A number of city centres are already reporting stronger than usual housing activity out of the gate, with first-time buyers comprising the vast majority of purchasers and move-up buyers in close pursuit. Demand and supply are on relatively even keel at present in most areas, but the traditionally busy spring season is expected to keep the market at a perfect equilibrium in the days and months ahead. However, there may be some exceptions to the rule. The country’s largest markets—Greater Toronto, Greater Montreal, and Greater Vancouver—are expected to head into the second quarter with fewer listings overall. Two centres—Newfoundland & Labrador and Kelowna—are still firmly entrenched in buyer’s markets.

Inventory has always been the wild card. Its influence is remarkable, but a number of other factors will serve to bolster Canadian real estate moving forward including land scarcity, intensification, immigration, continued infrastructure and capital spending, improving money markets and the rebounding economy. The threat of rising interest rates and the changes to mortgage lending may also prompt a flurry of activity affecting price growth in the weeks ahead. Yet, overall, gains in 2011 will be more moderate than those noted in the past decade.

-more-

RE/MAX Housing Barometer…2

Western Canada experienced some of the highest rates of return for real estate over the 11-year period. While values in Regina posted the greatest percentage increase (9.56 per cent), Edmonton, (9.25 per cent), Saskatoon (9.2 per cent), Winnipeg (9.01 per cent), Kelowna (8.42 per cent), Greater Vancouver (7.8 per cent), Calgary (7.7 per cent) and Victoria (7.59 per cent) all outperformed the national average.

Equally strong gains were posted in Quebec. While solid balanced market conditions prevailed for much of the decade, housing values in Quebec City and Montreal rose 9.2 and 8.48 per cent respectively on an annually compounded basis.

Increases were more moderate in Ontario and Atlantic Canada—with the exception of Newfoundland & Labrador, where values escalated 8.14 per cent on average. Ottawa led in terms of price appreciation in Ontario at 6.78 per cent, followed by Hamilton-Burlington at six per cent, Kitchener-Waterloo at 5.69 per cent, the Greater Toronto Area at 5.35 per cent, Moncton at five per cent, and London-St. Thomas at 4.82 per cent.

There’s no question that price growth has been solid over the past decade, but history tells us that exceptional growth supported by sound fundamentals is healthy. Concern is only raised when the underpinnings are insufficient to justify the trajectory. By all accounts, Canada’s real estate market measures up to conventional wisdom, and the faith in homeownership has not been misplaced.

While the statistics are impressive, they alone cannot tell the tale. The gains realized over the past decade speak to the tremendous resiliency of the Canadian residential housing market. Considering catastrophic events, both natural and manmade, that occurred throughout the period—SARS, forest fires, ice storms, 9/11, a recession—the performance of the real estate sector proved that much more significant. It remained a consistent bright spot supporting economic growth and ancillary spending, and subsequently helped lead the nation out of the greatest downturn in recent memory—its hardy nature heightening its appeal as a long-term investment.

2011-01-18T09:43:00.000-08:00

Carney keeps rate at 1%

Bank of Canada raises estimate for Canada's economic growth

The Bank of Canada elected to hold its benchmark overnight lending rate steady at one per cent in its latest policy decision on Tuesday.

"The global economic recovery is proceeding at a somewhat faster pace than the bank had anticipated, although risks remain elevated," the bank said in a statement.

"Any further reduction in monetary policy stimulus would need to be carefully considered."

The statement gave no clear indication as to when the bank might start raising rates again.

2011-01-17T09:09:00.000-08:00

New rules for Canadian mortgages

Finance Minister Jim Flaherty announced new rules for Canadian mortgages on Monday that he said will "protect the stability of the economy."

The Monday announcement included three new rules for the mortgage industry that will come into effect March 18:

Mortgage amortization periods will be reduced from 35 years to 30 years.
The maximum amount Canadians can borrow to refinance their mortgages will be lowered from 90 per cent to 85 per cent of the value of their homes.
The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.

The measures are equivalent to boosting interest rates by half a percent but are more specific, according to Douglas Porter, deputy chief economist at The Bank of Montreal.

http://www.ctv.ca/CTVNews/Canada/20110117/flaherty-mortgage-rules-110117

2011-01-16T14:39:00.000-08:00

Welcome 2011

by Contributed - Story: 59301
Jan 7, 2011 / 5:00 am

Happy New Year and it is hopefully a better year for our economy than last year. It certainly looks to be that way for real estate. Whilst predictions are bearish, there are signs of increasing activity, certainly for my office we have seen more activity than usual over the holiday season which is typically very quiet.

We shared with you the good news stories for Kelowna a few weeks ago and now it is time to confirm that the good news is happening to the east of us too with our neighbours in Alberta.

I was scanning the headlines for the oil patch a few days ago to see if the industry had mobilized and it certainly has. My contacts in Northern Alberta are telling me that jobs are available, work is busy and ancillary businesses such as restaurants and hotels are benefiting from increased work. Alberta is even talking about hiring problems again this year. A recent article in the Calgary Herald had this to say:

"Nearly 12,000 oil and gas wells have been drilled in Western Canada in 2010, the second-weakest number of the past decade, but still representing a 30 per cent rebound over 2009.

Oil and gas activity is expected to continue to grow this year, observers say, a bellwether of better economic times especially for rural Alberta, where many of the thousands of oilpatch workers reside and where dozens of oilfield services companies buy meals and rent hotel rooms.

"We're starting to see a lot more optimism in the community not only from 2010 but going forward into 2011," said Mayor Moe Hamdon of Drayton Valley, a centre of unconventional oil development this year.

"And 2012 is projected to be the largest year ever as far as activity in the oilfield in the Drayton Valley area."

Read more: Optimism riding high in Alberta oilpatch

While natural gas prices may be a cause for concern, many companies are moving their efforts to the oil patch for 2011.

While this column is not focused on oil activity per se, it does have a marked effect on BC and the Kelowna market in general. With some good fortune we will see increased tourism here this year even though our dollar will suppress that a little, domestic tourism can mean a lot to us in terms of home sales. Naturally we look forward to a silver lining and 2011 may just bring that.

2011-01-14T14:15:00.000-08:00

3815 Brown Road MLS# 10017341

2011-01-12T17:18:00.000-08:00

2011-01-11T14:37:00.000-08:00

PROPERTY TAX ASSESSMENTS

More than 80,000 property owners in the Central Okanagan received their 2011 assessment notices last week.

Click here for BC Assessment’s 2011 Roll News Release for the Central Okanagan and the Provincial Media Backgrounder. These documents provide information on the Assessment Notices mailed to the property owners in this area during the week of January 1, 2011.

Please note that these news releases and those for other areas in BC can also be found on the public website at www.bcassessment.ca

Assessments are the estimate of a property’s market value as of July 1, 2010. This common valuation date ensures there is an equitable property assessment base for property taxation. The value of the provincial assessment role exceeds $1 trillion for the first time!

2011-01-06T09:54:00.000-08:00

Real estate market faces stronger year: report

Last Updated: Thursday, January 6, 2011 | 8:12 AM ET Comments71 Recommend26

The Canadian Press

Canada's real estate market is heading into a stronger-than-expected year that will likely see home prices rise steadily, with overall transactions dropping slightly, a survey suggests.

Royal LePage sees a better-than-expected year for the Canadian real estate market. (CBC)

Royal LePage reports Thursday that average home prices are expected to rise three per cent to $348,600 in 2011.

Meanwhile, the number of transactions is predicted to fall two per cent, it said.

The survey also found that average house prices rose between 3.9 and 4.6 per cent in the fourth quarter of 2010.

Royal LePage said that price appreciation is expected to continue a moderate and steady climb throughout the year.

Activity in the housing sector was helped by low borrowing costs in the fourth quarter, and the report said that trend will likely continue into the first half of 2011 as homebuyers weigh possible rising mortgage rates later this year.

Housing Prices on the Rise?

2009-10-21T16:50:00.000-07:00

This article is worth a read.

The Province

B.C. house prices forecast to hit new highs over next 2 years

http://www.theprovince.com/business/house+prices+forecast+highs+over+next+years/2126604/story.html

2009-04-01T08:57:00.000-07:00

Regular Maintenance Is the Key to Protecting your Home’s Value

Inspecting your home on a regular basis and following good maintenance practices is a great way to protect your investment in your home. Whether you take care of a few tasks at a time or several all at once, regular maintenance can guard against many small problems as well save you money in the long run by avoiding major problems. Here is a quick checklist of things that should be looked at to clean up after Winter and get ready for Summer.

Spring Checklist

Check and clean or replace furnace air filters each month during the heating season. Ventilation system, for example heat recovery ventilator, filters should be checked every two months.
Have fireplace or woodstove and chimney cleaned and serviced as needed.
Shut down and clean furnace humidifier, and close the furnace humidifier damper on units with central air conditioning.
Check air conditioning system and have serviced every two or three years.
Clean or replace air conditioning filter (if applicable).
Check dehumidifier and clean if necessary.
Turn OFF gas furnace and fireplace pilot lights where possible.
Have well water tested for quality. It is recommended that you test for bacteria every six months.
Check smoke, carbon monoxide and security alarms and replace batteries.
Clean windows, screens and hardware, and replace storm windows with screens. Check screens first and repair or replace if needed.
Open valve to outside hose connection after all danger of frost has passed.
Examine the foundation walls for cracks, leaks or signs of moisture, and repair as required.
Repair and paint fences as necessary.
Ensure sump pump is operating properly before the spring thaw sets in. Ensure discharge pipe is connected and allows water to drain away from the foundation.
Re-level any exterior steps or decks which moved due to frost or settling.
Check eaves-troughs and downspouts for loose joints and secure attachment to your home, clear any obstructions, and ensure water flows away from your foundation.
Clear all drainage ditches and culverts of debris.
Undertake spring landscape maintenance and, if necessary, fertilize young trees.

For More Information please visit www.jesseeast.com .

Enjoy your day.

2009-03-26T12:44:00.000-07:00

Keeping Up to Date

It is always difficult to keep up to date on the market and even more difficult with the current conditions that we are in. Most people know that Real Estate prices have come down but the question is how much and from when. The following are the February 2009 Residential Statistics compared to February 2008.

Summary of Market Stats as of February 2009

Units Listed -14.08%
Units Sold -62.95%
Inventory +28.71%

Condo -- Sales 29
Condo -- Days to Sell 137
Condo -- Average Sold Price $233,268.96
Condo -- % change in sale Price -17.08%

Townhouse -- Sales 18
Townhouse -- Days to Sell 103
Townhouse -- Average Sold Price $328,546.12
Townhouse -- % change in sale Price -10.62%

Lots -- Sales 5
Lots -- Days to Sell 208
Lots -- Average Sold Price $341,633.34
Lots -- % change in sale Price 97.30%

Residential -- Sales 86
Residential -- Days to Sell 86
Residential -- Average Sold Price $447,819.37
Residential -- % change in sale Price -9.83%

Welcome

2009-03-23T08:20:00.000-07:00

Hello and Welcome to my blog.

With all the Advertising, Press and Opinions out there it is difficult to get a real idea of what is happening in the Housing Market. I will be providing up to date statistics on the Housing Market in the Kelowna Area from Peachland to Winfield as well as letting you know what is really going on out there. In addition to the Stats I will be giving my opinion on what I think of new projects, condo developments and Commercial Real Estate. If there are any questions that you have please feel free to ask and I would be happy to answer.

Enjoy.

Jesse East