Sunday, 31 October 2010

November 2010 Newsletter

Central Okanagan Sales Stats for October 2010

Type       Total       S Fam       Strata       Lot       Manuf

Oct 10     246         149           74            10            13

Sep 10     219        132            72             5             10

Aug 10    269         129          107           15            18

Jul 10      219         122           72           11            14

Jun 10     343         207           97           18            21

Oct 09     406         242           129         16            19

Whilst October did not seem as busy, you can see from these stats. that that more buyers came to buy rather than browse, which is good news.

Within these figures there were some obvious highlights - 14 single family home sales over $1m and 1 sale of $10m.

The bulk of the home sales remained within the 'affordable' side of the market with 123 sales under $600,000.

My forecast for the Central Okanangan Real Estate Market.

It is interesting that as I read information from such sources as the Globe and Mail, and CREA (Canadian Real Estate Association) they are all predicting a down turn in real estate markets. Anything from a modest fall to 'the bubble is about to burst'!

Whilst markets in Toronto and Vancouver may certainly be looking at a downward price correction, areas such as Winnipeg are still holding up well.

In my opinion the Kelowna Real Estate market has largely gone through the painful transition into a much more realistic market. We all knew that house price increases could not be sustained above inflation on an ongoing basis.

I am far more willing to subscribe to the view that basic economics are going to form the basis of our future pricing - i.e. supply and demand.

We certainly have an oversupply of inventory in the valley, and this will continue to affect condo prices in particular.

My current view is that we will see residential property prices be fairly stable over the winter and spring,as the sellers who didn't really need to sell, have decided to hold off for now. The rental market has improved a little, and that option will, in most cases, at least cover their costs.

During the next year, I believe a rise in prices between 2% and 5% is possible, however that is very dependant on consumer confidence, which is in part influenced by interest rates.

The good news is that the Government is well aware that Real Estate related spending forms up to 20% of our GDP and it would be dangerous for the economy as a whole, if the market fell too heavily across the country.

It remains a buyers market here in the Central Okanagan, and correct pricing and good presentation of a property is everything at.

In all cases buyers and sellers should expect to negotiate!

Feedback.

As many of you who read this newsletter are from 'out of town', I would be very interested to know how you feel about the market, both here and in your area.

I encourage you to e.mail me with your thoughts - trishcenci@shaw.ca.

Kind Regards

Trish Cenci
Coldwell Banker Horizon Realty
Cell 250 864 1707

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