The results of OMREB's May 2011 Buyers Survey are in!
A total of 151 respondents participated in this survey – 40% of the 376 OMREB sales representatives who closed the 538 deals on behalf of Buyers last month.
MAY SURVEY SUMMARY
Property Type: 27.4% of purchases were by Move Up Buyers
19.2% by First Time Buyers
9.6% moving from Single Family to Home Strata unit
7.5% buying Revenue/Investment Property
6.2% moving from Strata property to Single Family Home
5.5% moving into Retirement Home/Seniors Community
2.7% Recreation Property Buyers
Family Dynamic: 29.8% of Buyers were Two Parent Families with Children
23.2% Empty Nesters or Retired
21.2% Couples without Children
13.9% Single Females
9.9% Single Males
4.6% Single Parent Families with Children
Financing: 60% financed via Conventional Mortgage (with more than 20% down)
26% paid by Cash
14.7% by High Ratio Mortgage (less than 20% down)
0.7% required Rental Income to Qualify for Financing
Moving From: 53.6% from Within OMREB Board Area
19.2% from Alberta
11.9% from Other Areas in BC
6.6% from Lower Mainland/Vancouver Island
4% from Eastern Canada/Maritimes
3.3% from Saskatchewan/Manitoba
1.3% from Outside Canada
Moving To: 49.7% of purchases were in Kelowna/West Kelowna
25.2% in Vernon/Coldstream
9.3% in Central Okanagan (other than Kelowna/West Kelowna)
6% in Shuswap/Revelstoke (other than Salmon Arm)
6% in North Okanagan (other than Vernon/Coldstream)
4% in Salmon Arm
Vancouver, BC – June 15, 2011. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential unit sales in the province edged down one per cent to 7,857 units in May compared to the same month last year.
The average MLS® residential price climbed 20 per cent to $596,872 last month compared to May 2010.
“Tighter mortgage rules, tepid employment growth and advance buying during the first quarter kept BC home sales on a lower note in May,” said Cameron Muir, BCREA Chief Economist.
“However, recent downward pressure on mortgage interest rates is expected to provide some incentive to consumers over the summer months.”
I am sure a number of your, particularly Sellers, will be anxiously waiting to see whether sales numbers have increased this month, after the fall last month.
Well I am pleased to say that they have, but they are still down on the last two years.
Central Okanagan Statistics for May 2011
Date Total S/F Strata Lot Manuf
May 11 328 184 119 13 12
Apr 11 285 161 89 12 23
Mar 11 324 185 105 18 16
Feb 11 249 142 86 7 14
May 10 372 202 130 18 22
May 09 367 215 132 11 9
*Figures are as at close of business May 31, 2011 and may be subject to minor change.
My advice, to Sellers, is not to be too downhearted though! Everything from the garden, to the arrival of the Humming Birds has been weather delayed, this year, by 4 to 6 weeks!
Real Estate sales are no exception. Whilst we have started to see 'out of town' buyers looking, and I am starting to see an increase in showings on some of my 'lifestyle' type properties, the numbers are still down on previous years.
For Buyers, when you a ready to start looking, there are some really great deals around, and it remains a Buyers market, and will be for some time to come.
The additional good news is that the ongoing forecasts for interest rate increases are now revised until September, and there are still some really good mortgage rates to be found in the marketplace.
In the recent past the demand for properties in the Central Okanagan has been affected by speculators who were looking to 'buy and flip' properties as there were good profits to be made. Now the market is being driven by local buyers, clients looking for vacation homes and investors who are prepared to 'hold' on to their investments for the long term, which is a far more sustainable Real Estate Market to be in.
By the end of this month, I hope to report stronger sales in the real estate market and lots of summer Okanagan sunshine!