Sunday, 1 May 2011

Kelowna Real Estate Update May 2011

Central Okanagan Real Estate sales, for April, got off to an extremely slow start, and I was a little concerned about the numbers at one stage. I am pleased to say that things eventually ‘rallied’ and we saw sales much nearer to recent averages, during the last week of the month.

It is likely that some buyers may have brought forward their purchases to March to beat the changes in mortgage rules, and due to the continued threat of interest rate increases.

If we look at the results of the March OMREB Buyers Survey, we can see that 25.6% were move up buyers and 18.9% were first time buyers, with 57.8% coming from the Okanagan area.

I suspect that when the Buyers Survey comes out for April we will see that it was largely local buyers in the market, one of the indicators being that 91% of the sales were under $600,000.

Central Okanagan Statistics for April 2011

Date        Total     S/F    Strata    Lot   Manuf

Apr 11     285*   161       89        12      23

Mar 11     324    185     105        18      16

Feb 11     249    142       86          7       14

Jan 11      200    115      66           9      10

Dec 10     157      93      46         10        8

Apr 10     390    218    127         28      17

Apr 09     304    177    103           7      17

*Figures are as at close of business April 30th, 2011 and may be subject to minor change.

As you can see from the figures above, the final sales numbers were disappointing. I do think the weather played a part, as we did experience several snow showers, during the month, which is quite unusual in recent years. Our ‘growing season’ seems like it is 2 or 3 weeks late, and I still haven’t seen my first Humming Bird this year!

My forecast for the months ahead.

Economically, things are pointing to better times, and we are certainly hearing positive news from the oil and timber industries. I, therefore, have every reason to believe that sales numbers will continue on an upward trend, and I am certainly being contacted by more 'out of town buyers'

We do have to bear in mind that the real estate market remains fragile and it continues to be a 'Buyers Market'.

It will be interesting to watch over the next few weeks, to see whether we see an influx of additional inventory on the market, as I am aware that the end of April was a busy ‘move out’ time for renters – particularly as it was the end of the UBCO school year.

My view is that pricing will remain flat, therefore good presentation of a property and correct pricing will remain very important, to attract Buyers.

Kind Regards

Trish Cenci

Tel 250 864 1707

Coldwell Banker Horizon Realty

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