Summer Sales Continue to Rebound – August 2010
Rob Marak Royal Lepage 250.470.1311
The number of residential real estate sales rose 5% from June to July, marking six consecutive months of gains for the first time in many years based on the recent statistics from the Okanagan Mainline Real Estate Board.
These gains are spurred by low interest rates and affordable home prices, and strongest in the $300K—$350K price range, a market that is continuing to be fueled by first-time home buyers.
Single family home sales are also up 60% over July of 2008 (231 and 145 respectively) adding momentum to what is typically considered “summer slowdown”. Average price of a single family home is down just under 4% from last year with July 2009 in at $483,184 over the July 2008 figure of $502,887.
With recent news that an economic recovery, although gradual, seems to be underway, buyer moods appear to have been buoyed. As consumer confidence grows, typically so will the move-up buyer market.
Interestingly, the median price is holding level, coming in for the third month in a row at $425,000, unlike the condo market which experienced a solid increase of almost 7.5% ($249,450) over June’s median price and less than a mere 1% over the July 2008 figure of $247,500.
The median price is the price that is midway between the least expensive and most expensive home sold in a given period of time.
Current market activity differs by area and property type and it’s important to tap into local housing market expertise to understand why some properties are attracting multiple offers, while others are not moving.
The real estate sector has been one of the sectors making a positive contribution to economic growth in the Okanagan with a recent report indicating that $60,200 in economic spin-offs and .42 jobs are created for every residential home sale transaction in B.C.
A Few More Real Estate Stats
Average House Price in July 2009 $ 483,184
Median House Price in July 2009 $ 425,000
Number of houses listed last month: 446
Number of lakeshore homes sold last month: 3
Average Mobile Home Price: $ 93,988
Dollar value of sales in July 2009 $188,273,200
Dollar value of sales in July 2008 $136,674,480
Kelowna area housing starts totaled 49 homes in July, down from 159 homes a year ago, according to Canada Mortgage and Housing Corporation (CMHC). Slower employment growth, strong price competition from a well supplied existing home market and rising inventories of new, completed and unoccupied units have all contributed to fewer housing starts this year.
“Detached homes have become the focus of new home demand this year, singles starts surpassing multi-family construction for the first time since 2004," noted CMHC Market Analyst Paul Fabri. Condominium construction is expected to pick up in 2010.
The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.
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