July 2012 Kelowna Real Estate Market Update

Apartment and Townhome Sales WAY Up
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Kelowna Market Update

Finally, it feels like summer here in Kelowna, and it is the great weather we need to attract more people to Kelowna.

We just came back from Calgary and we noticed tremendous activity in the residential and commercial construction. This is good news for Kelowna, as the Alberta market is responsible for about 20% of our transactions, freeing up our sellers here to make their move to the next property.

As you can see in our graphs, the sales for single family homes are up. The listings are also up, but only slightly in comparison, this will slowly push us to a balanced market, which does not favor the buyer or the seller. Prices are relatively stable and we expect them to stay flat as long as the inventory stays consistent. Well priced properties are selling in a relatively short time and sometimes triggering a multi offer situation.

If we listen to the news regarding the real estate market, it certainly can be very confusing between bubble, overheated, recession and so on. We are in Kelowna and we need to look at our market and how we fit in. Compared to other cities and areas like Victoria, Calgary, Toronto, Edmonton and even including Vancouver which slowed down some, they are all selling much faster and more of their inventory, than we here in Kelowna. Their prices are all the way up, therefore making Kelowna look more reasonable and affordable. Again that is all good news for us, as we benefit from all the other cities doing well and the people moving to Kelowna.

Of curiosity; we were speaking with one of our relatives who recently moved to N.Y city and he tells us an 800 sqft apartment in New York – Manhattan costs $4,000 a month in rent. Also while in Calgary on the weekend, we visited some showhomes in the SW and saw a 5,000 sqft two storey spec, nicely finished on all three levels, no view, no waterfront, no water nearby, asking 1.8Mill plus GST.

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Active Listings: Single Family, Apartments, Townhomes
Number of Sales: Single Family, Apartments, Townhomes
Average Price: Single Family, Apartments, Townhomes

Major Cities Report
Victoria:

Real Estate Market Continues Slow Growth
It’s been a typical spring market in Greater Victoria real estate with good volume, but average prices are lower than a year ago. Last month 370 single family homes sold throughout the Victoria Real Estate Board’s region, whereas 348 sold in June 2011. The average price for single family homes sold in Greater Victoria last month was $580,557, a decrease from June 2011’s average of $618,429. Total MLS® sales for June 2012 was 637, with 602 of those residential, compared to 618 and 596 respectively for the same period in 2011, and 659 and 636 last month. There are 5,189 active listings. 21 Single Family Dwellings sold over $1 million (3 over $2 million) .

   
Vancouver:

Greater Vancouver Housing Market Favoured Buyers In June
The number of residential property sales hit a 10-year low in Greater Vancouver for June, while prices remained relatively stable.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales of detached, attached and apartment properties reached 2,362 in June, a 27.6% decline compared to June 2011 and a 17.2% decline compared to May 2012.
June sales were the lowest total for the month in the region since 2000 and 32.2% below the 10-year June sales average of 3,484.

   
Calgary: Sales Activity Trending Towards Long-Term Stability
Residential sales in the City of Calgary totaled 11,752 for the first half of this year, a 16% increase over the same period last year. New listings are declining as consumers appear to delay putting units on the market until they see further price recovery. The single-family benchmark price for the month of June 2012 was $430,800, a 7.3% increase over the previous year.
   
Edmonton: Market Continues To Be Robust And Housing Prices Are Higher Than They Were Last Year.
On average, residential prices are 3.2% higher than June of last year. The all-residential average price was $342,014 in June while single-family detached homes sold for $393,471, up 3.7% year-over-year.
   
Toronto:

Low-Rise Home Types Drive June Price Growth
The average selling price in June was $508,622 – up by 7.3% compared to June 2011. The mortgage payment associated with the average priced home in June, assuming 5% down with a five-year fixed rate mortgage amortized over 25 years, would account for approximately 35% of the average household’s income in the GTA after adding property tax and utility payments.

   
Single Family Home Average Price 2009 – 2012

Single Family Home Average Price Graph 2000 - 2008

 

Number of Sold Single Family Dwellings 2009 – 2012

ber of Sold Single Family Dwellings Graph 2005 - 2008

 

Single Family Listing Inventory 2009 – 2012

Single Family Listing Inventory Graph 2005 - 2008

 

Single Family Percentage of Sales to Listing Ratio 2006 – 2012
(Percentage of How Many Listings Sell in a Month)

Single Family Percentage of Sales to Listing Ratio

 
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250-868-8000
info@wolfhomes.com
RE/MAX Kelowna
#100 – 1553 Harvey Av.
Kelowna, BC, V1Y 6G1

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