The BC Real Estate Association has reported that 2014 sales in British Columbia are up 15.2% over 2013, and that year over year increases were reported in all but one Real Estate Board area. This is the strongest rebound since 2009.
The South Okanagan Real Estate Board (SOREB) is finally seeing what appears to be a sustained recovery in the number of sales this year. In 2014, SOREB reported a total of 1757 residential sales across the board area, up about 25% from the 1401 sales in 2013 and just 1335 sales in 2012. This represents the highest number of residential sales in the Board area since the peak in 2007 of 2431 sales.
Oliver’s sales were up about 21% for total residential sales in 2014 of 149. This compares to just 123 sales in 2013 and 145 sales in 2012. 2007 saw 290 residential sales.
In Osoyoos the market has improved even more. There were 184 residential sales in 2014, up almost 43% from 129 sales in 2013 and only 111 in 2012. This compares to a total of 293 residential sales in 2007.
Across the SOREB area the total number of sales in all categories by the end of the year was 2,010 compared to just 1614 sales last year. The average sale price of a single family home ended the year at $375,529.
In Oliver 3 single family homes sold in December for a total in 2014 of 106 sales. This compares to 2 single family sales in December 2013 for a total last year of 92. The average single family home sold for $316,233. This compares to an average price at the top of the market in 2008 of $358,935.
This past year, there were 22 mobile home sales and 21 condo/townhome sales in Oliver. In addition, there were 6 farm sales, 11 lots and acreages and 5 commercial sales in 2014.
In Osoyoos, 5 single family homes sold in December for a total year to date of 110 homes. This compares to 2 sales in December 2013 and total year end sales last year of 81. The average sale price of a single family home sold in 2014 was $369,861. This compares to an average price of $425,012 at the peak in 2007.
In 2014, there were 3 mobile homes sold and 71 condo/townhomes sold in Osoyoos. In addition, there were 11 farms, 17 lots & acreages and 4 commercial property sales.
Beth’s Crystal Ball: Where does it go from here?
So, we’ve seen a year of pretty significant improvements in the number of real estate sales across the Province. The press is expounding on the return to ‘balanced’ markets, and even in some case ‘seller’s’ markets. What will happen here in our little corner of the South Okanagan?
I’ve been in this business pretty much full time since 1988. I’ve seen a number of ups and a number of downs. The real estate market is always a bit of a roller coaster. However, this last downturn seems a little different somehow. Other market places in the Province (most notably the larger communities) have seen a really solid rally, while in our smaller communities it has been a little spottier.
Here in Oliver and Osoyoos, 2014 started out gangbusters then began to fizzle by about mid-September. We closed the year up over all, but the rate of improvement had slowed. Kelowna, by contrast, continued to roar along moving into what they are terming almost a sellers’ market.
In the past, the market trends seem to be set in the lower mainland, then move out to the larger interior centres and then gradually ripple down to our smaller communities. So, in theory, what they’ve seen in Kelowna should be what we can anticipate here in the South. While I do think our demand and number of sales will show this trend in 2015, I think we are still some ways away from reaching balanced market conditions. At the end of the year there was still over 14 months worth of listings inventory for sale in Oliver and over 22 months worth in Osoyoos. It’s going to take awhile for the excess inventory to be reduced and to see any increase in prices.
Of course, other factors also come into play. Oil prices at ½ of what they were are creating a slowdown in the oil fields which will certainly negatively affect the Alberta economy. Albertans have traditionally been a large percentage of our buyers in this area, and we had recently seen a trend for younger people working in the oil patch buy here and commute to work up north.
On the other hand, Corrections employees anticipating a transfer to the new facility in Oliver are starting to make an appearance in the marketplace. There are said to be more than 280 full time positions when they open in 2016. I don’t think anyone expects that all or even most of these employees will buy a home in Oliver and Osoyoos, but even a smaller portion of them will have a significant impact on our communities and the real estate market. If Oliver and Osoyoos can expect even 1/3 of these people will choose to live here, that would mean more than 90 sales and/or rentals over the next couple of years. That is quite an impact when you consider that in 2014, there were a grand total of 333 residential sales between our two communities.
So, as always, there are some negative and some positive factors playing in our market here. I am optimistic that the positive will be the greater pull in 2015 and we will see continued improvement. And, the longer I’m in the business, the cloudier I realize my crystal ball is!
Everyone’s circumstance is different. For a personal consultation on your particular needs and desires, give me a call. I will listen to you and help you determine the best course of action for you.
am·or·ti·za·tion pe·ri·od
noun
The period of time it will take to pay off a mortgage in full.
Amortization periods refer to the length of time it takes you to repay your mortgage.
Typical amortization periods range from 10 to 25 years.
Longer amortization periods mean lower mortgage payments, but in the end you pay more interest.
Shorter amortization periods save you money and help you pay off your mortgage faster. But they may impact your ability to save for other things, afford what is important to you, or make your mortgage payments in the event your financial circumstances change.
Only you can assess your finances and choose an amortization period that suits you and your budget.
Buying a home may be one of the biggest financial decisions you’ll ever make. That’s why financial literacy is so important and why I’m pleased that November is Financial Literacy Month. When you have the financial knowledge you need, you are better able to make informed choices and contribute to a prosperous Canadian economy.
For more information on the financial aspects of the home buying process check out the Homebuyers’ Road Map, a collaboration between The Canadian Real Estate Association and the Financial Consumer Agency of Canada.
To access the Homebuyers’ Road Map please visit:
http://crea.ca/resources
The South Okanagan Real Estate Board (SOREB) is finally seeing what appears to be a sustained recovery in the number of sales this year. Year to date, SOREB reported a total of 1427 residential sales for the first nine months of this year across the board area, up almost 28% from the same period in 2013. Oliver’s sales were up almost 34% for a total year to date residential sales of 123. This compares to just 92 sales in 2013, but 125 sales in 2012.
In Osoyoos the market has improved even more. There have been 157 residential sales so far this year, up almost 47% from 107 sales to date in 2013 and only 96 in 2012.
Across the SOREB area the total number of sales in September of this year was 203 compared to just 163 sales in the same month last year and representing the most number of sales in September since 2007.
In Oliver 11 single family homes sold in September for a total year to date of 89 sales. This compares to 6 single family sales in June 2013 and a total year to date last year of 71. The average single family home sold for $304,429. So far this year, there have been 17 mobile home sales and 17 condo/townhome sales in Oliver.
In Osoyoos, 9 single family homes sold in September for a total year to date of 93 homes. This compares to 7 sales in September 2013 and a total year to date sales last year of 68. The average sale price of a single family home sold this year is $335,385. So far this year, there have been 3 mobile homes sold and 61 condo/townhomes sold in Osoyoos.
Buyer’s Market or Seller’s Market?
There is always lots of talk about whether it’s a ‘Buyer’s’ Market or a ‘Seller’s’ Market. But, what does that mean? And, where are we at?
Generally, the distinction is made by determining the how many months it would take to sell all of the inventory (active listings) on the market. This is determined by dividing the number of active listings by the average monthly sales.
A buyer’s market means that homes are selling more slowly, and negotiating position favours the buyer because there is ample supply and less demand. Usually, 7 or more months supply would indicate a ‘Buyer’s Market’ and prices may decrease.
A seller’s market means that homes are selling very quickly, and the sellers may have the upper hand because there is little selection and multiple buyers may be considering the same property. Prices may be increasing in this instance. Less than 4 months supply of listings is usually considered a ‘Seller’s Market’.
A supply of 5 to 6 months would be considered balanced. There is a good selection, and prices are relatively stable.
At the end of September there were 170 active residential listings in Oliver. The average sales per month year to date have been 13.7. So, there is currently a 12 month supply of inventory and we are still experiencing a ‘Buyer’s Market’.
In Osoyoos, there were 326 active residential listings at the end of September and the average monthly number of sales year to date has been 17.4. Therefore there is over 18 months supply. The market in Osoyoos is still strongly a Buyer’s Market even though there has been a greater increase in the number of sales in 2014 than most other communities in the South Okanagan.
Should I sell? Should I buy?
There are always times when you don’t have a choice. The trick to optimizing the value of your home and the price that you will get for it in a buyer’s market is not to leave too much ‘wiggle’ room. Buyers are expecting good value and are not willing to look at listings that are a little out of range or make offers when there are other comparable homes on the market that represent better value.
If you are selling to re-purchase in this market, the values are relative. You will sell at a lower price, but you will also benefit from a lower price on the purchase of your new home. This can actually be very advantageous if you are considering a move up to a larger or more expensive property.
If you are selling and moving out of the market, it is a little bit more difficult to come to terms with accepting a lower price than you may like. Obviously, everyone is in a different situation, and how you move forward will depend on what the other costs involved are, and your level of motivation to move.
If you are in the market to buy (especially your first home), you are in luck! The timing is ideal. Prices are very low compared to where they were a number of years ago, and interest rates are still at all time lows. This combination of low prices and low interest rates makes buying a home very affordable.
Everyone’s circumstance is different. For a personal consultation on your particular needs and desires, give Beth Garrish a call. She will listen to you and help you determine the best course of action for you.
Vancouver, BC – June 13, 2014. The British Columbia Real Estate Association (BCREA) reports that a total of 8,729 residential sales were recorded by the Multiple Listing Service® (MLS®) in May, up 13.9 per cent from May 2013. Total sales dollar volume was $4.9 billion, an increase of 20.6 per cent compared to a year ago. The average MLS® residential price in the province rose to $565,233, up 5.8 per cent from the same month last year.
“Consumer demand was noticeably stronger last month, with unit sales posting their highest level for the month of May since 2007,” said Cameron Muir, BCREA Chief Economist. “Rock bottom mortgage rates are inducing many would-be home buyers to enter the market this spring.”
“With most BC markets now in balanced conditions, home prices are up in nine of 11 board areas,” added Muir.
During the first five months of the year, BC residential sales dollar volume was up nearly 26 per cent to $18.8 billion, compared to the same period last year. Residential unit sales were up almost 17 per cent to 32,894 units, while the average MLS® residential price was up 7.7 per cent at $571,648.
For more information, please contact:
Cameron Muir Damian Stathonikos
Chief Economist Director of Communications and Public Affairs
Direct: 604.742.2780 Direct: 604.742.2793
Mobile: 778.229.1884 Mobile: 778.990.1320
Email: cmuir@bcrea.bc.ca Email: dstathonikos@bcrea.bc.ca
The British Columbia Real Estate Association (BCREA) is the professional association for more than 18,500 REALTORS® in BC, focusing on provincial issues that impact real estate. Working with the province’s 11 real estate boards, BCREA provides continuing professional education, advocacy, economic research and standard forms to help REALTORS® provide value for their clients.
To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.
For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale.
To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.
Share:
