Ever wonder where home buyers come from?
Since September 2010, the Okanagan Mainline Real Estate Board (OMREB) has been collecting information from our members with regards to where our buyers are coming from – both geographically and demographically.
The purpose of collecting this data is to add another element to our market knowledge and a better understanding of current trends.The longer record, the more insight the Board will have.
Results of OMREB’s new Board - wide monthly Buyers Survey indicate that serious buyers are taking advantage of the current market and leveraging their positive purchasing power while it lasts. Buyer profiles gathered through each monthly survey include property type, family dynamic, financing, and areas moving from and to.
On average during the past 11 months (September 2010 through July 2011), home buyers have beencoming from: within the OMREB Board area (57.63%); Alberta (13.93%); Lower Mainland/Vancouver Island (12.5%); other areas of BC (7.75%); Saskatchewan/Manitoba (3.37%); Eastern Canada/Maritimes (2.79%); and outside Canada (2.04%).
During this period, move‐up buyers accounted for 23.87% of the purchasers while first - time buyers comprised 23.87%.
Real estate markets can be driven by local demand, demand stemming from outside the region or province, by international sources, or by a combination of all three.
Knowing how many homes are sold and at what price is an important part of the picture. However, understanding who your buyers are and where they come from can reveal not only market dynamics but also identify which factors actually drive local demand.
For example, a change in entry level buyer activity can have a ripple effect throughout the entire market as many move-up buyers rely on first‐time buyers to purchase their existing homes. First‐time buyers area a driving factor and they stimulate the chain of ownership.
Low interest rates and attractive pricing alone don’t necessarily mean increased sales activity. Manyadditional factors affect consumer confidence, including local employment opportunities and the overall economic environment. Real estate markets can also react differently depending on the influence of various buyer segments.
Housing markets in Vancouver, for example, are being bolstered by off‐shore buyers while the Alberta market is closely linked to natural resource prices and their job market. Since a sizable proportion of local sales come from buyers that originate outside our region, 40% being non‐local, we need to keep an eye on Alberta and the Lower Mainland. Our monthly Buyers Survey helps to do just that.So if you were curious as to what is moving our local real estate market, this is a bit of insight.
OMREB is comprised of 1,155 member REALTORS® and 86 real estate offices in the Southern Interior of BC, and the Board area covers the Central Okanagan, North Okanagan and Shuswap – from Peachland to Revelstoke.
July 2011 Buyers Survey Results.
The results of OMREB's July 2011 Buyers Survey are in! A total of 152 respondents participated in this survey – representing 43% of the 352 OMREB sales representatives who acted as Buyers Agents and 28% of the 542 deals closed on behalf of Buyers in July.
JULY SURVEY SUMMARY & HIGHLIGHTS
26.0% of purchases were by Move-Up Buyers
14.0% by First Time Buyers
11.5% moving from Single Family Home to Strata Unit
9.3% buying Revenue/Investment Property
4.7% moving from Strata property to Single Family Home
4.7% Recreation Property Buyers
4.0% moving into Retirement Home/Seniors Community
To read the full survey results, please click on the attached link -:
The point of interest this month is that we can see a swing from first time buyers to move up buyers. It will be interesting to see if this trend continues in the coming months.
Certainly the news of lower fixed interest rates and the predictions of the Bank of Canada delaying their interest rate rise will help first time buyers.
Tel 250 864 1707