Kelowna: Unbelievable... a remarkable turnaround from a near free-fall last year as you can see in our graphs. Undoubtedly, the recovery in Kelowna’s housing market came sooner than expected this past year. Pent up demand from first time buyers, record low mortgage rates (the lowest in 50 years) and improved affordability with lower prices have helped bolster the Kelowna market especially in the second half of 2009. This same time last year, the cards were stacked in favour of the buyer. This month, sales once again show Kelowna has returned to a more balanced market already. While our sales did taper off slightly in December, as expected for this time of year, home buying activity in Kelowna indicates we are in a sustained recovery. We think the spring will be strong, fueled partly by fears of new taxes on home sales, and higher mortgage rates by next summer as most analysts predict, but forecasts are for rather modest hikes.

FORECAST for the Okanagan
We cannot help to think that the excessive printing of money will result in higher inflation and higher real estate prices. At the same time, we are in a fantastic location. Real estate values will grow where people want to live, play and retire; in rare areas like here in the Okanagan. And do not forget we, the baby boomers are getting older every day one more day. How many people want to move to Winnipeg to retire?

 

Skiier at Big White that Colin took a photo of.

Major Cities Report
Victoria: 2009 - A year of recovery for the Victoria area real estate market! Total sales of homes and other properties rose by 24 % compared to 2008. The average price of single family homes in Greater Victoria last month was $651,316. 16 sales of over $1 million, including one sale in Central Saanich of over $5 million affected the overall average. The six-month average was $601,237

Vancouver: Slow start, strong finish for the housing market in 2009. After beginning the year at near record low sales levels, buyers’ confidence in the Greater Vancouver housing market quickly returned, allowing for significant and sustained increases in the number of residential property sales for much of 2009. The Real Estate Board of Greater Vancouver (REBGV) reports that total unit sales of detached, attached and apartment properties in 2009 reached 35,669, a 44.8% increase from the 24,626 unit sales recorded in 2008, but a 6.3% decline from the 38,050 residential sales in 2007. The residential benchmark price, as calculated by the MLS Link Housing Price Index®, for Greater Vancouver increased 16.2% to $562,463 between Decembers 2008 and 2009.

Kelowna: A remarkable turnaround from a near free-fall last year. The recovery in Kelowna’s housing market came sooner than expected this past year. Our listing inventory is down to 1,058 single family homes from a high of just under 2,000 last year or down from December last year of 1,534 by 31%. Sales are up by 65% and came in at 109 for December 09, compared to only 66 in Dec. 08. The average price remained fairly stable at $469,514.

Calgary: The Calgary housing market continues to show signs of a sustained recovery. December 2009 saw 799 single family homes sold in the city of Calgary. This is a decrease of 27% from 1,095 sales in November 2009. In December 2008, single family home sales totaled 449. The average price of a single family home in the city of Calgary in December 2009 was $451,349, showing a decrease of 3% from November 2009, when the average price was $464,444, and showing an increase of 8% from December 2008, when the average price was $417,398.

Edmonton: December results create positive year-end! Residential sales through the Edmonton Multiple Listing Service® were at the second highest level ever for December (after a record number of sales in 2006 of 1,074). Sales of single family homes, condominiums, duplexes and other residential property totaled 948 units for the month. Total sales of all types of real estate for December was 1,066, also a second place finish for monthly sales. The price of residential property remained stable in December with single family homes dropping just one third of a percent and condos increasing 5.4% to reverse the 2.5% drop in November. An average priced single family property in the Edmonton area sold for $366,761 in December; down from $368,018 in November.

Toronto: After a slow start to the year, existing home sales rebounded during the second half of 2009. Greater Toronto REALTORS® reported 87,308 MLS® transactions in 2009 – a 17 % increase over 2008. This result included 5,541 sales in December. The 2009 result was in line with the healthy levels of sales experienced between 2004 and 2006, but lower than the record of 93,193 set in 2007. The average home price in 2009 climbed four % to $395,460. The average price for December transactions was $411,931.