Kelowna Real Estate Market News

As Ski Season approaches, Buyers tend to turn their attention to Buying Real Estate in Ski Resorts.


My thanks, this week, go to Peter Borszcz of Pihl Law Corporation, here in Kelowna who has put together a timely reminder of some of the issues you must consider when purchasing or selling a property at a ski resort:

  1. Unique Titles and Leaseholds – some examples of these include the leasehold strata units of Snow Pines, the Restrictive Covenants on titles preventing competitive ski businesses, or the Easements to allow for use of adjacent ski runs or lifts. 
  2. Use Restrictions – Many buildings have both title and strata restrictions on how and when that building can be used and by whom, these should be fully reviewed and you should not make common real estate assumptions like “I can live in this unit full time” if its part of a resort strata hotel complex.
  3. Short Term Accommodation Issues – AirBNB and VRBO and other short term accommodation...
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First-time Buyers, Revenue Investors and Move-Up Buyers were all busier this month. It will be interesting to see if that is an indicator that the effects of the Mortgage Stress Test are now easing.


Fewer local people bought last month - probably enjoying the summer holidays, whereas there were move Buyers from the Lower Mainland.


As far as areas go, Kelowna was a little busier, whereas fewer Buyers bought in the Vernon and Coldstream area.


Please find the full summary below.


Best describe your most recent Buyer (moving to/from property type)


First Time Buyer – 21.60% (18.29%)

Revenue Property Investor – 11.24% (13.27%)

Moving Up – 13.61% ( 16.81%)

Similar Property Type – 20.41% (16.81%)

Downsizing – 14.50% (15.04%)

Single family Res to Strata – 3.25% (5.01%)

Recreational Property – 7.69% (7.67%)

Retirement Community – 1.48% (0.59%)

Strata to Single Family – 3.25% ( 2.65%)



Describe the Buyer (family dynamic):


Couple without children ...

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Vancouver, BC – September 12, 2019.


The British Columbia Real Estate Association (BCREA) reports that a total of 7,093 residential unit sales were recorded by the Multiple Listing Service® (MLS® ) in August, an increase of 4.9 per cent from the same month last year. The average MLS® residential price in the province was $685,575, an increase of 2.6 per cent from August 2018. Total sales dollar volume was $4.86 billion, a 7.6 per cent increase from the same month last year.


“BC home sales continue to recover from a policy-driven downturn,” said BCREA Deputy Chief Economist Brendon Ogmundson. “Home sales have been rising through the spring and summer, but still remain well below preB20 stress test levels.


MLS® residential active listings in the province were up 10 per cent from August 2018 to 40,098 units and were essentially flat compared to July on a seasonally adjusted basis. Overall market conditions remained in a balanced range with a sa...

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My thanks go to Susan Cowling of Dominion Lending Centres this month for her Guest Blog, on things to consider when deciding to Co-Sign for  Loan or Mortgage.


Co-signing on a loan may seem like an easy way to help a loved one (child, family member, friend, etc.) live out their dream of owning a home. In today’s market conditions, a co-signor can offer a solution to overcome the high market prices and stress testing measure. For example, if you have a damaged credit score, not enough income, or another reason that a lender will not approve the mortgage loan, a co-signor addition on the loan can satisfy the lender's needs and lessen the risk associated with the loan. However, as a co-signor there are considerations.


1. If you act as a co-signor or guarantor, you are entrusting your entire credit history to the borrowers. What this means is that late payments on the loan will not only hurt them, but it will also impact you.


2. Understand your current situations—taxes, legal,...

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The BC Real Estate Association has now issued its third-quarter Housing Forecast.


In their opinion, the BC housing market appears to be stabilizing after a year and a half of volatility induced by the B20 mortgage stress test and other policy measures. Total MLS® unit sales are on pace to finish 2019 at just under 75,000 units, a 5 per cent decline from 2018. Home sales posted a sharp rebound over the summer, buttressed by strong employment growth and a decline in mortgage rates. We expect that most markets will normalize around long-term averages in 2020, with total provincial sales reaching 82,710 units.


Growth in the BC economy is projected to slow for a second consecutive year in 2019. A policy-driven slowdown in housing activity, a challenging global trade environment and cautious consumer spending have provincial real GDP on pace to grow at about 2.2 per cent this year. Our baseline forecast is for slightly improved economic growth at 2.5 per cent in 2020, as spending on LNG projects...

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August 2019 was a really beautiful month in the Okanagan Valley, with sunny days, no smoke and the temperatures being just perfect for BBQ's, lazing on the Beach, Boating, Golfing, Hiking & Biking!


This definitely had an effect on Kelowna Real Estate activity!


Buyers seemed very focused on enjoying the Summer and seemed to press 'pause' on their house-hunting searches, as Agents reported the number of viewings and sales more subdued.


Kelowna & Central Okanagan Real Estate Sales August 2019.


 


Date


Total

Single Family


Strata


Lots


Manuf

  Aug 19 474 225 207 24 18
  Jul 19 525 254 225 15 31
 

Jun 19

465 244 182 14 25
 

May 19

530 265 221 19 25
  Aug 18 443 204 191 16 22

Last month-:

- Total Sales were down 9.7% last month.

- Single-Family Homes sales down 11.4%

- Strata sales down 8%.


Compared to last year sales have shown a positive improvement.


- Overall sales were up 7%

- Single-Family Home sales up 10.3%

- Strata sales were up 8.4%.


Inventory Levels...

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The trademarks MLS®, Multiple Listing Service® and the associated logos identify professional services rendered by REALTOR® members of CREA to effect the purchase, sale and lease of real estate as part of a cooperative selling system.
MLS®, REALTOR®, and the associated logos are trademarks of The Canadian Real Estate Association.