Kelowna: In the first quarter this year we noticed increased activity, probably because of the anticipated mortgage hikes. In May, sales slowed, especially in Western Canada. Kelowna did not drop like other cities, but we believe there are a number of factors contributing to this slowdown. There are a declining number of first time home buyers in the market, a rise in monthly carrying costs as mortgage rates rise, and to some extent, fear about the European financial crisis. Consumers are feeling a little nervous, so it’s understandable that urgency among buyers has lessened.

We were at a luncheon presentation by Robert Fine and he outlined our economic fundamentals, including employment and net migration; Kelowna’s overall outlook is positive. These steady improvements should offer some stability to Kelowna’s housing market as we enter the second half of 2010.  While listings continue to increase and therefore provide more selection for buyers,  our sales are shifting to higher price points as move-up buyers re-enter the market. We again experienced good activity in the over $1 Million market with 7 sales in May. This has also resulted in an overall boost in the average price. In this competitive market, everything matters including your neighbourhood, property type and the appearance of your home. Sellers will need patience as more choice for buyers means they take more time to evaluate decisions. Buyers and sellers must come together with realistic expectations if they wish to see results. 

We are looking forward to a hot summer and doing some great sailing.


 

The greatest compliment we can receive are the referrals from our clients, friends and acquaintances.

 

Major Cities Report
Victoria: The number of homes and other properties sold throughout the Victoria area softened in May while the choices for buyers increased with a further rise in the number of properties available for sale. A total of 695 homes and other properties sold in May down from the 756 sales in April. There were 879 sales in May of last year. Prices were mixed depending on the property type. The average price for single-family homes sold in Greater Victoria last month was $646,483 up from $624,149 in April. There were 24 sales of over $1 million including one sale in Oak Bay of over $3.5 million.

Vancouver: The number of properties listed for sale in Greater Vancouver continued to rise in May, while the number of sales showed a year-over-year decrease. The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in Greater Vancouver totaled 3,156 in May 2010, a decline of 10.4 per cent compared to the 3,524 sales in May 2009; 5.1 per cent more than the 3,002 sales in May 2008; and 27.1 per cent less than the 4,331 sales in May 2007. May 2010 sales also represent a 10.1 per cent decline compared to last month’s sales. New listings for detached, attached and apartment properties totalled 7,014 in May 2010, a 48.2 per cent increase compared to May 2009 Over the last 12 months, the overall MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 16.7 per cent to $590,662 from $506,201 in May 2009.

Calgary: Calgary home sales showed a marked decline in the month of May. The number of single family homes sold in May 2010 was down 20 per cent from the same time a year ago and a decrease of 7 per cent from 1,352 sales in April 2010. The average price of a single family home in the city of Calgary in May 2010 was $483,240, showing an increase of 5 per cent from April 2010, when the average price was $460,378, and showing an increase of 11 per cent from May 2009, when the average price was $436,427.

Edmonton: The housing market was relaxed in May with slightly lower sales than last year and prices generally stable. Despite the sales drop, the current sales figures compare favorably with levels set in 2008. Single family residences in the Edmonton area rose in price by less than one percent and sold on average for $390,583 in May.

Toronto: Greater Toronto reported 9,470 sales in May, representing a one per cent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record. New listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 – up 13 per cent compared to the average of $395,609 recorded in May 2009.