Monday, 1 August 2011

Kelowna Real Estate Update August 2011

The sun finally came out as we approached the end of July. I have lived here for 6 years now, and I can’t remember the hills still being green at this time of year before!

With the sunshine came our ‘out of town’ visitors who are both welcomed by the Tourist Trade, and the Real Estate Market.

It has certainly felt busier in areas such as Sunset Drive and in Quail Ridge, as Investors and Buyers have been pleasantly surprised with the prices they are seeing.

Central Okanagan Statistics for July 2011

Date
Total
S/F
Strata
Lot
Manuf
Jul-11
329
149
130
27
23
Jun-11
331
200
90
20
21
May-11
328
184
119
13
12
Apr-11
285
161
89
12
23
Jul-10
225
122
78
10
15


Figures are as at close of business July 31st, 2011 and may be subject to minor change

As you can see Strata sales have been the big success this month, which I believe will reflect the influence of investors in the market, when we see the Buyers Survey Results later in the month.

Against last year at this time the figures look miraculous, with an overall increase of 46%! I am not cheering too hard however, as these figures are certainly not reflecting in increased pricing for Sellers, as it remains a Buyer’s market.

My Forecast for the coming months.

I believe that August will continue to be busy for the condo market, and in the areas of the City that have more ‘seasonal selling’.

In my Open Houses I have been seeing visitors from Saskatchewan, Alberta and Vancouver, and the economy and general weak consumer confidence does not seem to be affecting their buying habits.

There is a concern that prices my fall further, and there are a number of storm clouds on the horizon – the U.S. Debt Crisis, a highly valued Canadian Dollar, high gas prices and rising interest rates. Any one or all of these factors could have a negative effect on the Canadian economy, jobs and consumer confidence.

On the positive side, industries such as oil and timber are doing well, which have a strong influence on the economies of BC and Alberta.

In Kelowna, I continue to believe that pricing will remain fairly flat, providing we don’t see a large increase in inventory, which would further skew demand and supply, which already favours Buyers.

Kind Regards

Trish Cenci

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