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John Thomson  

Thomson report

REAL ESTATE REPORT – November 2010
Provided by: Rob Marak
Royal LePage
250-470-1311
www.robmarak.ca

So . . . What is Next?

As we head toward the end of the year, we always like to reflect on what has happened and also try to figure out what is coming next. Trying to figure out what is going to happen in the market is difficult as even the top economists and other pros have differing opinions. Some of the opinions are based on trends, statistics and the big one...gut feeling. We have some buyers that feel the market is going to drop and they will get a better price for their dream home if they wait, but we also have sellers that believe if they wait until spring to sell they will get more for their home - but it probably can’t go both ways. One of the biggest questions we get being in the Real Estate industry is, “What do you think the market is going to do?” If the top economists have different opinions, it is fair to say that Real Estate Agents do, too. So based on...you guessed it, trends, statistics and gut feeling here are some things we do know:

CREA predicts in 2011, Canada overall will experience a decline of 0.9% in house prices. There is another national report that suggests the average home price will climb by 1.6%. CREA also predicts that sales will decline by 7.3% while the other national report suggests that they will go up by 5.5%. Interest rates are expected to rise in 2011, most seem to agree on this. While at historical lows, any hike in interest rates can have a big effect on pricing and the market. If you are a home buyer it is important to realize that if the market went down only 5% and you were approved at that price, even a 1% interest rate hike could make it hard to qualify for this home. What we can learn from this is, if you like the home you see and can afford it, it is a great time to buy. It is almost impossible to time the market, we usually know it is at its lowest when it has already started going back up. At the end of the day there was a great quote from Mark Twain, "Buy land, they're not making any more of it".

Story from Royal LePage, Kelowna

Residential Sales by Price – Year to Date

Price Range 2010 2009

$0 to $200,000 10 12
$200,001 to $240,000 11 28
$240,001 to $280,000 46 37
$280,001 to $320,000 80 115
$320,001 to $360,000 186 242
$360,001 to $400,000 238 308
$400,001 to $440,000 248 244
$440,001 to $480,000 200 215
$480,001 to $520,000 162 188
$520,001 to $560,000 133 114
$560,001 to $600,000 89 91
$600,001 to $999,999 205 211
$1 Million and over 43 19

Summary of Residential Sales – Year to Date

TYPE 2010 2009

Acreage 31 18
Acreage/House 85 69
Acreage (Waterfront) 4 2
Business 16 13
Townhouse 459 529
Condo 635 713
Duplex 78 90
Farms 11 13
IC & I 76 24
IC & Lands 5 4
Lots 143 96
Leases 34 64
Lots (Waterfront) 3 0
Multi-Family 2 3
Multi Plex 3 8
Mobile Homes 182 163
Recreational 9 10
Residential 1650 1824
Residential (waterfront) 30 26
Timeshares 1 0

TOTAL 3451 3669


A Few More Real Estate Stats

Average House Price in Dec. 2010 $ 440,123
Median House Price in Dec. 2010 $ 420,000
Number of houses listed last month: 273
Number of lakeshore homes sold last month: 0
Average Mobile Home Price: $ 101,571
Dollar value of sales in Dec. 2010: $73,538,882
Dollar value of sales in Dec. 2009: $118,878,126

ACTIVE LISTINGS

Residential Mobiles Strata Lots

1340 179 1324 587


More John Thomson articles

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About the Author

John Thomson is the Okanagan's pre-eminent business columnist writing his column, Rumours and Things, for over 24 years. Plugged in to the valley's who's who, John keeps his readers coming back for more with his straight talk and optimistic perspective on where we are headed next.

When John is not writing his column, he runs a sixteen year old think tank called the Executive Roundtable and holds his popular "Thomson Presents" quarterly business speaker seminars.

Have a comment, question, or tip for John? 

E-mail John at
[email protected]
or send him a fax at 250-764-8255.

 



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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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