RomRealty

Tag: kelowna real estate

  • Rom’s December Okanagan Real Estate Stats & Update

    Rom’s December Okanagan Real Estate Stats & Update

    Okanagan Real Estate Report December 2020

    Rom’s Real Estate Opinion

    We have finally moved on past the year of 2020. It was a strange yet historic year on many different levels. The real estate market started out as predicted. It was shaping up to be a slightly better year than 2019. Then in March, the world was forced to pause a moment due to COVID-19.

    What happened in real estate after that was nothing short of miraculous. First, activity on almost all levels came to a grinding halt. Next, was a bounce back of all bounce backs! Come June, prices across the country rose in every area except Alberta. Here in the Okanagan most real estate companies experienced their best year ever.

    Residential prices rose 9% in the Kelowna area. Inventory is at an all-time low and still going down. Absorption is at an all time high and still going up.  And of course, interest rates are at an all time low.

    In short, we are in a real estate market boom.

    What about 2021?

    We are now half way through January, 2021 and there are no signs of slowing down. It is too early to tell for sure but it appears 2021 will be another banner year. People are moving here from Alberta and the Lower Mainland and that trend doesn’t appear that will change any time soon.

    However, this won’t happen if our inventory gets so low that there’s nothing to sell or the government shuts the country down again. Although, most indicators are that 2021 will be as strong or stronger than 2020.

    Final Thoughts

    One thing to remember. When the market is falling people will give you all kinds of reasons why it will keep going like that. When the market is rising people will give you all kinds of reasons why it will keep going like that. In either case it never does. 2021 will likely be a record breaking year.  As always, this is just the Real Estate World according to Rom.

  • Rom’s November Okanagan Real Estate Stats and Update

    Rom’s November Okanagan Real Estate Stats and Update

    Okanagan Real Estate Report November 2020

    Rom’s Real Estate Opinion

    The market rebound from a devastating Spring 2020 was surprising for everyone, including every Realtor® and top economists across this country. Since that time we have seen nothing but record breaking gains across the board, (other than Alberta which has been hit with the oil crisis). Sales are up, inventory is down, absorption is through the roof and prices continue to rise across the Central Okanagan.  The absorption rate for single family homes was over 57% in the month of November, breaking new records again.  This means that 57% of the total house inventory sold in one month.  Even in the boom of 2005-2008 we didn’t see these numbers.

    Canadian Real Estate Trends

    Let’s look at one of the trends that is arising from the global pandemic and allow me to make a prediction. There is no question that people are trending away from big cities in this country. Major Real Estate organizations are beginning to predict a slow down in Canada because of this trend. One of the things that is significantly different between the stock market and the Real Estate Market is that the Real Estate market is incredibly local. Very often 2 markets separated by a relatively short distance can be experiencing completely different markets.  To look at “Canadian Real Estate” stats and make decisions locally based on them is not an effective methodology.

    The 2 largest economies in Canada are Vancouver and Toronto. To give you an idea of how large the Real Estate markets are in these cities consider this. There are approximately 110,000 Realtors in Canada. 62% of them work in Toronto and Vancouver. That means that when a report talks of Canadian Real Estate they are primarily talking about Real Estate in Toronto and Vancouver.

    So let’s get back to our trends. If consumers are moving from the cores of the 2 major cities in this country the reports on Canadian Real Estate will be that sales in Canada are dropping. However, the fringe communities will likely benefit from that trend. The outlying suburbs of Toronto, Vancouver, Montreal and Ottawa are already reporting an increase in sales. Here is the kicker: the Okanagan is an outlying area of Vancouver.  That may seem strange being it is 4 hours from Vancouver. However, an increased number of people in Vancouver are opting out of city life and coming to the Okanagan.

    Final Thoughts

    My prediction is that as long as the government does not shut down the country, in 2021 you will see news reports that the Canadian Real Estate market is beginning to soften. However, our stats in the Okanagan will remain strong as migration from Lower Mainland and Alberta continues. As always, this is just the Real Estate World according to Rom.

    Wishing you and your family a wonderful, safe and healthy Christmas and Holiday Season.
  • Rom’s October Okanagan Real Estate Stats and Update

    Rom’s October Okanagan Real Estate Stats and Update

    Kelowna Real Estate Report October 2020

     

    Rom’s Monthly Real Estate Opinion

    Brrr… we got our first glimpse of winter this past month here in the beautiful Okanagan. Even with our first snow fall, the real estate market has not gone into hibernation.

    If we didn’t know better we would have to conclude that the best thing to happen to the Real Estate market across this country is a global pandemic.  In October the absorption rate for Central Okanagan was at 53%. What that means is that in the Central Okanagan 53% of the entire residential inventory was sold in October. These are figures usually reserved for Toronto and Vancouver when they are booming. To give you another perspective, a balanced market is considered somewhere around 12 to 18%. This gives you an idea of how much of a seller’s market this is.
    This market will start to slow down as we get into November and December because of the winter weather and the holidays. It slows down every year at this time. It’s in extreme markets like this that REALTORS show their value. It takes a well trained REALTOR to figure out what a house is worth in a market like this but also how to write an offer in a market like this and actually get the house for their buyer.

    Where are buyers coming from?

    Where our buyers are coming from is changing. We are seeing an increase in buyers from Alberta, from the Coast and from other areas of the world. The Okanagan is no longer a secret.  I believe we will see a dramatic increase in buyers from major cities like Vancouver, Edmonton, Calgary and Toronto into the Okanagan region. Right now that is just a prediction but soon we will have the data to reveal the reality.
    As always, please remember this is just the Real Estate World according to Rom. Get out and enjoy the beauty of late Fall in Kelowna!
  • Rom’s Real Estate Opinion & Stats August 2020

    Rom’s Real Estate Opinion & Stats August 2020

    Kelowna Real Estate Report August 2020

    Rom’s Monthly Real Estate Opinion

    What a whirlwind summer it has been for Okanagan Real Estate!  The market continues at a record-breaking pace.

    Looking at the stats for this month, remember that low inventory is the sign of a robust real estate market, not the opposite! Some of the stats we look at have never been this robust and some we would have to go back years to find a comparable level.

    There is a lot of speculation from realtors, investors, buyers and sellers as to what is going to happen in the near future. Most people think that when the government subsidies go away, the real estate market is going to soften or collapse. However, a market never responds to one force. 

    Multiple positive forces also pushing on the marketplace in the Okanagan! We have dramatically increased migration from Alberta and the Lower Mainland, there are some of the lowest interest rates in history, very low inventory (which pushes up price!), and the back-log demand created from the drop in sales from COVID-19 in April/May.

    Stats to consider

    Each year the market softens in the fall, so some may anticipate the market turning down. However, when we compare August 2020 to August 2019 stats, it tells a positive, robust story. Residential sales for August decreased slightly to 1,034 compared to July’s 1,094 total units sold across the region yet remained up compared to this time last year by 43%, reports the Okanagan Mainline Real Estate Board (OMREB).

    I believe that we are in a fairly robust market for a while to come still.  The one change we cannot predict, is if COVID-19 cases were to dramatically increase that shuts our market down again.  However, I don’t think this is going to happen again.

    As always. please remember this is just the Real Estate World according to Rom. Get out there and enjoy the beautiful Okanagan Fall season!
  • Rom’s Real Estate Opinion & Stats June 2020

    Rom’s Real Estate Opinion & Stats June 2020

    Kelowna Real Estate Report June 2020

    Rom’s Monthly Real Estate Opinion

    Below you will find the ‘benchmark’ prices for properties. This provides us with a much better idea of the current market rather than using ‘average’ or ‘median’ prices.  ALL property prices (Condo’s, Townhomes and Single Family), went UP compared to June 2019.  
    Despite the Pandemic, the real estate market is active and properties are selling. Moreover, the market has bounced back to an astounding level. It is right back to where we thought it would get to before COVID-19 hit. There is no algorithm for the effects of COVID-19 on the Okanagan Real Estate market. World renowned economists really don’t have any idea either. 
    In Kelowna, the absorption rate for June was 24.39%. This means that 24.39% of all residential inventory in the Central Okanagan sold in June!  It hasn’t been that high since April 2018. There were 261 residential sales in June in the Central Okanagan. That is the highest number of sales since July 2017.

    So, what is going on?

    How can the market be flourishing when unemployment has shot up and the GDP has shot down? There are 2 factors creating this.
    First, banks and governments have stepped up hugely. The pandemic did take eligible buyers out of the market. However, every time the interest rates dropped another fraction of a percentage point, multiple new buyers were now able to buy. Remember, the market is driven by the buyers. There was also a backlog of buyers who were ready to purchase but were waiting out the Pandemic.  Since we entered phase 3 here in BC, consumer confidence returned and therefore real estate activity spiked.
    Second, the market and the economy are not doing well in Alberta. Edmonton seems to be doing slightly better than Calgary but they are both hurting because of COVID-19 effects and the bust of the petro-chemical industry. This is driving some to pull that retirement trigger earlier than previously planned and move to the Okanagan. 
    Please remember this is just the world according to Rom.
  • Rom’s Monthly Real Estate Update May 2020

    Rom’s Monthly Real Estate Update May 2020

    May 2020 Kelowna Real Estate Report

    Yearly Comparisons – Sales and Prices for May 2019 vs May 2020

    *Please click on images below to enlarge

  • Rom’s Real Estate Opinion April 2020 during COVID-19

    Rom’s Real Estate Opinion April 2020 during COVID-19

    The Real Estate Market During the COVID-19 Pandemic

    There is no doubt that the COVID-19 pandemic has made a big impact in the lives of everyone around the world. The way we live our day to day lives has changed drastically; from how we get our groceries to being able to see our family and friends. The real estate market is no different. However, people still have the need to buy and sell homes, even during these challenging times.

    I want to start off by sharing a few visuals. Please click the images to englarge them. The first is Country by Country COVID-19 cases. I want to point out how well BC is doing on flattening the curve, even when comparing to the rest of Canada.

    Next I want to share some graphics on home sales and home prices in past recessions. In April, single family homes were actually still up by 4% compared to April 2019. Factor in low rates that we likely wont see again, it is actually a great time to purchase a home.
    Jean-Francois Perrault, SVP & Chief Economist of Scotiabank stated the following, “We view the housing market to be on a COVID-related pause. Following a dramatic slowing in Canadian housing markets in 2020Q2, we anticipate a quick rebound in home sales and housing starts through 2021 if population growth remains strong, and the economy improves in the second half of the year”.

    April 2020 Okanagan Real Estate Report

    In real estate, we track 5 stats that are the best indicators of what’s going on in the residential market. Those stats are sales, DOM (days on market to sell), inventory, absorption (% of inventory that sells each month), and prices.

    Sales and absorption are the first stats to change. They are both down 50-60% compared to April 2019. This is normally the time the market would be ramping up for spring.

    The stats also illustrate a significant factor that we discovered years ago about how a market goes through its changes. This is that the prices are always the last stat to change. April’s statistics show exactly this. Prices have essentially not changed.

    If we look back to the recession of 2008, sales and absorption began to drop right in the first quarter. However, prices remained stable and/or continued to rise. We are seeing the same right now with house prices actually up 4%, yet condo prices are down 4%. I expect the prices of condos to lower further this year. House prices may lower as well but not as much as condos will.

    Conclusion

    Although the last stat to be typically affected by a recession/pandemic is the price, it may have a short term effect on lower house prices. Although, we haven’t see this happen yet.

    We will soon come to know our new ‘normal’. Businesses will reopen, consumers will regain their confidence and the real estate market will rebound. This could be as early as this Fall.

    However, I do believe that condo prices in the Kelowna area will continue to dip due to ample new construction.

    As always, this is just the Real Estate World According to Rom.

  • Buying and Selling Real Estate During the Coronavirus Pandemic

    Buying and Selling Real Estate During the Coronavirus Pandemic

    Buying and Selling Homes during the Coronavirus Pandemic

    Even during this difficult time, I want to let you know that my obligation to help you sell or buy a home is still in force.

    The Government of British Columbia has released it’s list of Essential Services.  Real Estate services have been listed as essential.

    While following the guidelines set out by the government, I will continue to support my clients who are in the need to sell or purchase a home. Homes are still selling, albeit there is less activity.

    So, how do you buy and sell real estate in the coronavirus era?

    There are many factors to consider while trying to buy or sell while also maintaining social distancing. Open houses are unfortunately not advisable during this time.

    Virtual tours offer an in depth look inside a home and its floorplan. Touring a home virtually allows clients to see if a home makes sense to them.

    Another option available is if the home for sale is vacant. In fact, I have two vacant properties on the market currently (click the addresses listed below for more information on these listings)!

    968 Fuller Ave, Kelowna, BC

    205-1125 Bernard Ave, Kelowna, BC

    While showing vacant properties, I ensure that inside is sanitized, touch nothing and maintain distance from clients as they walk through.

    Upon making or accepting an offer, handshakes may not be feasible but teleconferencing and e-signing programs allow things to flow digitally.

    Realtors have checklists for buyers and sellers to ensure that properties are able to be viewed safely. If you have any questions, please feel free to contact me to discuss further.

    Stay safe and healthy – Rom.

  • FOR SALE: Condo in Kelowna’s Cultural District!

    FOR SALE: Condo in Kelowna’s Cultural District!

    FOR SALE: 315-1331 ELLIS STREET, KELOWNA, BC$418,800

    NEW LISTING!

    Beautiful and spacious two bedroom, two full bath condo in the heart of Kelowna’s downtown cultural district! Abundant natural light from large windows and 10’ ceilings fills the condo. The loft windows of sunrise views over Black Mountain and Knox Mountain. The split floorplan places both large bedrooms on either side of the main living area to create more privacy and great rental potential.

    The condo has been freshly painted and there is new vinyl plank flooring installed in the main living areas and both bathrooms. Other upgrades include a “silent” Bosch dishwasher and new hot water tank. The large patio with gas hookup provides for a relaxing outdoor living space.

    Perfect location in the downtown core only steps away from coffee shops, restaurants, shopping and events. Only one block away from the beautiful lakeshore and all the water sports and beach amenities that Kelowna has to offer!

    For more details, please contact Rom Houtstra at 250-317-6405 or email him at rom@romrealty.com.

  • Kelowna Happenings March 2020

    Kelowna Happenings March 2020

    In March we look forward to welcoming Spring! And of course, the kids anticipate their two week Spring Break! With the change of season and extra time with the kids you might be looking for something fun to do in Kelowna. Here’s a few great events happening in our great city!

    March 2 – Doug and the Slugs concert @ Kelowna Community Theatre

    March 4-8 – International Women’s Day Exhibition

    March 6 – Kelowna Rockets vs Seattle Thunderbirds @ Prospera Place

    March 13 – Jazz Night with Wood Wire and Fire @ The Vibrant Vine

    March 15 – Mini Pop Kids Live! @ Kelowna Community Theatre

    March 17-18 – Cruz the Blues @ Big White Ski Resort

    March 28 – Peppa Pig Live! @ Kelowna Community Theatre

    March 29 – Fred Penner: Cat Came Back Tour

    Have an event you want to share? Please let me know and I would be happy to add it to my blog!

    As always, if you have any real estate questions, feel free to contact me! – Rom