I can't believe it is December already!
If we look back on the year, it has been a tough year for many parts of the Kelowna Real Estate Market. In reviewing the residential real estate sales, there have been some great deals for Buyers.
The number one question to Real Estate Agents continues to be 'How is the Market' and 'What do you think is going to happen to home prices in Kelowna'?
In my 'quest' to find the answer, I have been looking to a number of different sources, such as CMHC, Stats Canada and the BC Real Estate Association.
Only last week I attended a talk by Paul Farbi, Market Analyst for CMHC, about the Real Estate Market in Kelowna.
As part of his presentation, he talked about the reasons why the investment and second home market has been declining - putting it down to slower economic growth which cooled demand, investors pulling back due to uncertainty in the markets and softening prices, financing became harder and stronger competition from cheaper homes in the U.S.
What is the immediate future for Kelowna Real Estate?
Regionally, we are seeing job numbers beginning to rebound, and economic growth is beginning to recover. We have a number of positives for this area in particular - the growth in UBCO, the expansion projects at Kelowna International Airport and Kelowna General Hospital, Residential Construction is now stronger and Best Buy have just opened their new 34,000 square foot store in Orchard Park Mall.
The Rental Market has also been hit over the last couple of years with vacancy rates, in 2011, being around the 6% mark, whereas it was 3.7% in the previous year. The good news is that rents are now beginning to stabilise, and hopefully this area of the market will continue its recovery.
All in all, the economic and employment growth tend to support housing demand for 2012, so I do agree with the view that prices will remain stable over the coming months with a modest increase later in 2012, as inventory continues to be absorbed.
Central Okanagan Real Estate Sales for November 2011
*Figures are as at close of business 3oth November 2011, and may be subject to slight change.
As you can see from the November sales figures, numbers have remained quite reasonable, given that things do traditionally slow down during the winter months, and much better than this time last year.
For those of you I may not see or speak to over the next few weeks, I would like to take this opportunity of to wish you a very Merry Christmas and a Prosperous New Year!
Cell 250 864 1707