RomRealty

Tag: Okanagan

  • Rom’s Kelowna Real Estate Opinion January 2020

    Rom’s Kelowna Real Estate Opinion January 2020

    Kelowna Real Estate Opinion for Jan 2020

    We are well into the swing of things for 2020. I hope you are continuing on with any resolutions and visions you set for yourself for 2020! It’s never too late to get back on track. For this months opinion, I will start off with a couple of real estate definitions:

    • Market Correction: A downward trend with prices, absorption and sales reducing, and inventory and DOM (days on market to sell) increasing
    • Market Recovery: An upward trend with prices, absorption and sales increasing, and inventory and DOM (days on market to sell) decreasing

    One of the important differences when comparing the Real Estate Market to the Stock Market is that the Stock Market is global and the Real Estate Market is local. The old phrase, “location, location, location” is not only important in real estate.  It causes a lot of misunderstandings with ‘experts’ who try to predict the Real Estate Market (including a lot of realtors). The press will grab onto anything that looks radical in the market. Then they report without a lot of reference to the relevance of the information or the differences in the various locations. The problem is that the public gobbles up whatever the press feeds them. This problem is relevant in the Real Estate statistics in the Okanagan right now.

    Current Okanagan Situation

    Currently, when we look at the statistics, the Okanagan is in recovery mode. Around the third quarter of 2019, it started to shift from a slight correction to a slight recovery. Here in the Central Okanagan, there was a bit of a lag for the last couple of years.  We have a larger economy than some surrounding markets. Therefore, it was building up rebound pressure. We are now seeing a positive market bounce back! It will be interesting to watch as we proceed through 2020 if this trend continues. I expect big markets like Vancouver and Toronto will continue to recover.  This means for the Okanagan that we will be in a very gradual recovery trend for the next couple years.

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

  • Kelowna Happenings February 2020

    Kelowna Happenings February 2020

    Looking for something fun to do in Kelowna for February 2020? Here’s a few events happening in our great city!

    February 2-6 – The Village Walk, Dine & Wine Tour @ Big White Ski Resort

    February 7-9 – BC Snow Sculpture Competition @ SilverStar Mountain Resort

    February 8 – Snowed In Comedy Tour @ Kelowna Community Theatre

    February 8-9 – Scenic Sip Trail –  Sweetheart Pairings Wine Tour

    February 12 – Kelowna Rockets vs Tri City Americans @ Prospera Place

    February 14-15 – Ballet Kelowna: Twilight @ Kelowna Community Theatre

    February 15-17 – Family Day Weekend @ Big White Ski Resort

    February 17 – Family Day @ H2O Adventure and Fitness Centre

    February 22 – Lake Country Indoor Children’s Festival 

    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

  • Rom’s Kelowna Real Estate Opinion December 2019

    Rom’s Kelowna Real Estate Opinion December 2019

    December 2019 Kelowna Real Estate Report:

    *Click the images to enlarge

    Kelowna Real Estate Opinion for Dec 2019

    Welcome to a new decade! Last month, I did a year in review for 2019 and made some predictions for the new year. Now, lets get into the full swing of 2020!

    There is something interesting going on in the market right now! We weren’t sure about it until we had a full year of stats to compare. If we compare the averages and totals of all of 2019 to all of 2018, it shows what I saying last year. The market is in a soft correction. Inventory is up in the Okanagan area. Absorption, prices and sales are down slightly, compared to 2018. However, here is the cool part. When we compare the second half of 2019 to the second half of 2018, the trend is upwards.

    What does that mean?

    It means that about half way through 2019, the market started to shift from a very slight correction (Down Market) to a very slight recovery (Up Market). If you remember, half way through 2019 I said there are some positive forces coming into the market that should make a difference in 2020. These positive forces reflect the introduction of the first time buyer program from CMHC, interest rates at record lows again and Vancouver and Toronto – our 2 biggest economies – are in recovery again. Home sales in Vancouver rose 5.2%. This makes it a great time to sell your home in Kelowna as many Vancouverites are making the move to the Okanagan.

    As expected, these forces are making a difference and we are starting to see that in the stats. 2019 was a relatively balanced year in the Okanagan, with a slight downturn. 2020 will be a relatively balanced year with a slight upturn. As always, this is just the Real Estate World according to Rom.

     

  • Kelowna Happenings January 2020

    Kelowna Happenings January 2020

    Looking for something fun to do in Kelowna for January 2020? Here are some fun ideas for you!

    January 4 – Kelowna Winter Market (every Saturday until March!)

    January 11 – Kelowna Rockets vs Kamloops Blazers @ Prospera Place

    January 14 – Dine Around Okanagan Launch Party – Dine Around Okanagan events will be happening Jan 15 – Feb 2!

    January 17 – Orchestral Rock Odyssey

    January 18 & 19 – Monster Truck Chaos @ Prospera Place

    Janjuary 19 – Okanagan Bridal Expo

    January 22 – Big White Scavenger Hunt @ Big White Ski Resort

    January 24-26 – Fireside Festival

    Have a fun 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

  • Rom’s Kelowna Real Estate Opinion November 2019

    Rom’s Kelowna Real Estate Opinion November 2019

    November 2019 Kelowna Real Estate Report:

    *Click the images to enlarge

    Kelowna Real Estate Opinion for Nov 2019

    We are well into December now and I love to take the time at the end of the year to reflect on the past 12 months. Each year I make predictions about the market for the coming year and I will do that here today for 2020.

    Last December, I predicted a flat market, relatively ‘boring’ with no dramatic rise or fall in any statistic. I called it a soft correction which means it’s a little on the downside but mostly flat. This is exactly what we got in 2019.

    Overall, prices inched down a bit here in the Central Okanagan. I also predicted that inventory would rise slightly, which it did (about 5-10%). Sales were predicted to be flat as well. The absorption rate (% of total residential inventory that sells on a monthly basis), decreased slightly.

    As you can see, for 2019 overall it has been a very flat market. You can view the 12 month comparison of Nov 2018 to Nov 2019 by clicking here: 12 Month Comparison November 2019 (1).

    So, what will happen in 2020?

    Basically, we will see more of the same with one slight change.  The forces driving the market are charging slightly. There is some uncertainty in the US government, Canadian government and the BC government that is keeping consumer confidence down.

    However, banks are counteracting that negativity. Interest rates are historically low again.  The new first time home buyer program (see my blog post here), that rolled out in September is being used aggressively. Big cities like Toronto and Vancouver have gone into the recovery leg of their cycle. We are still influenced by the increased buyer activity from the failing Alberta market and people cashing in from the West Coast.

    In summary, we will see a relatively flat market for 2020. Instead of calling it a soft correction, I will say it will be a soft recovery. Prices, absorption and sales will rise slightly and inventory will remain constant. It will be a good market but nothing spectacular. That is the Real Estate World according to Rom.

    Wishing you and your family a safe and happy holiday season!

  • Purchase Plus Improvements Mortgage

    Purchase Plus Improvements Mortgage

    Considering buying a home that could use an update? A purchase plus improvements mortgage might be the right choice for you.

    The purchase plus improvements mortgage is a customizable mortgage that will allow you to make home improvements as soon as you move into your new home by rolling the renovation cost into your mortgage. Improvements such as replacing the floors, updating a bathroom or replacing old wiring are some of the many ways to enhance the value of your new home.

    Affordability

    Even though there are some limits on what you can do, a purchase-plus-improvements mortgage is the most affordable way to finance a renovation. This is because of today’s low mortgage rates. A mortgage is the cheapest way to borrow. If you put an additional $40,000 on your mortgage, it will cost you far less than if you borrow $40,000 on a line of credit for renovations down the road.

    Timeline

    There are 90 to 180 day timeline on these mortgages, meaning you and your contractor must be prepared to finish any renovations promptly. The timeline is part of what makes this mortgage so great – you improve the value of your home and you get to live in it right away. The exact timeline will depend on your lender and your mortgage broker can help you navigate your options.

    How It Works

    The first thing you will do is work with your mortgage broker to be pre-approved for your maximum amount.

    Then the fun part – find a home you love! Once you have found a home and your purchase offer is accepted, you will get estimates for the improvements you want to make. Your broker can then pass along the estimates to your lender for approval.

    If your lender agrees that the renovations will improve the value of your home, they will send your broker an approval for the revised amount of your mortgage – the purchase price PLUS the cost of renovations.

    On your closing date, the amount approved for your renovation will go to your lawyer, to be held until you’ve completed the proposed renovations. You will receive the funds once your renovation is complete. This means you must pay the renovation costs up-front from your pocket. Some choose to use a credit card or line of credit to get through the renovation period.

    An appraisal will confirm that your renovations were completed within the agreed upon amount of time and then your lawyer can release the funds to you.

    It’s important to note that your minimum down payment will be calculated based on the total amount of your home’s assessed value – the purchase price plus the price of the approved renovations.

    Purchase-plus-improvements mortgages are the most affordable way to finance home improvements! Contact me today for more information – or if you have any other real estate question! I’d love to help!

  • Modern, Open Concept Downtown Kelowna Home

    Modern, Open Concept Downtown Kelowna Home

    FOR SALE: 968 FULLER AVE, KELOWNA, BC$688,800

    ULTRA MODERN, OPEN CONCEPT DOWNTOWN KELOWNA HOME. Abundant natural light and crisp modern lines greet you inside as you enter this uniquely designed two-story home with custom cedar plank accents outside. The expansive main floor features a beautiful kitchen with quartz counters, and a comfortable dining and living room area. Quality wide plank hardwood and tile flooring are evident throughout the home. Large floor-to-ceiling windows and double glass sliding doors lead to a south exposure patio at the front for those relaxing summer days.

    Upstairs you will find 3 bedrooms, a full bathroom, convenient laundry room and office area. The spacious and private master bedroom includes a deluxe 5 piece ensuite and walk-in closet. New custom blinds are located throughout the home. There is also a brand new detached garage with lane access, and a low maintenance yard. New furnace, a recent roof and 9 foot ceilings on both the main and upper floors.

    The home is located in a very quiet neighborhood and yet is a short walking distance to the downtown center. Amazing quality of life with an abundance of restaurants, coffee shops, brew pubs, wineries and retail shopping nearby. Also a short walk away is Prospera Place, the theatre/cultural district and Okanagan Lake beach areas.

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

  • Rom’s Kelowna Real Estate Opinion Oct 2019

    Rom’s Kelowna Real Estate Opinion Oct 2019

    October 2019 Real Estate Report:

    *Click the images to enlarge

    Kelowna Real Estate Opinion for Oct 2019

    The Okanagan is continuing to go down the path of a mild correction or a flat market. Central Okanagan sales are down about 10% and prices are down about 4% for the year to date. Some people would say that this would be a declining market. However, compared to what Alberta is going through, we are simply flat. Also, our markets are still substantially higher/better than the 10 year averages. One of my favourite phrases these days is: the market is a good, balanced market, not boom or bust.

    The interesting thing to take note of is what is continuing to happen in big cities like Toronto and Vancouver. Both these 2 giants are continuing to show promise and positive gains in their lower-end markets. To give you an idea of how much statistics from Toronto and Vancouver affect the overall averages of the country, consider this. There are about 108,000 REALTORS® in Canada. About 62,000 of them are in Toronto and Vancouver. This explains why, when the media is reporting Canadian Real Estate statistics, it really has nothing to do with the market that your home is in, unless you live in Toronto or Vancouver.

    The market in the Okanagan will remain steady as we go forward into 2020. Keep in mind that the market will follow it’s usual annual trends. In other words, the last quarter of each year and the first quarter of the following year are always the slowest quarters of every year.

    If you are a first time home buyer, click here to read my recent blog on the new incentive program that was just introduced.

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

  • Kelowna’s Beautiful Fall Season

    Kelowna’s Beautiful Fall Season

    Fall in Kelowna: The Ultimate Chef’s Playground

    I love this Fall video from Tourism Kelowna. It showcases stunning shots of the beauty (and food!) that Kelowna has to offer. I hope you enjoy it too! For more information on Kelowna living, visit my About: Living in Kelowna page by clicking here.

    #explorekelowna

  • Rom’s Kelowna Real Estate Opinion for Sept 2019

    Rom’s Kelowna Real Estate Opinion for Sept 2019

    September 2019 Real Estate Report:

    *Click the images to enlarge

    Kelowna Real Estate Opinion for Sept 2019

    Fall is here and with that brings the falling of leaves, cooler temperatures and a new season of the real estate world. Like I have stated in the last few months, the current market is flat. No exciting rises or bubble bursts and there will be none in the immediate future. Bubbles burst when the market has shot up like a rocket like 2004 to 2007. Markets rise dramatically when the market previously fell off a cliff like in 2009 to 2013. We have nothing like that going on. The market is good; not great, not terrible but good.

    A new report shows disparity in home price trajectories across Canada, including some large decreases. The CENTURY 21 analysis of home prices reveals that some communities have seen some steep decreases in price per square foot in the past year, most notably in British Columbia. Brian Rushton, Executive Vice-President of CENTURY 21 Canada said, “It is not surprising to see Vancouver prices drop so much, but the drop is actually more significant in some Metro Vancouver suburbs like West Vancouver and secondary B.C. markets such as Vernon and Kelowna”.

    While the report is showing prices drop, sales activity is steady. The townhome market under $500,000 continues to be very active. The single family house market is all over the place.  The market for homes over $1 million is very slow right now, with only 3 sold last month.  Condo sales are still strong too but I suspect this market to stabilize within the next 2 years.

    The only insight we can give you is that so far it looks like 2020 will be very similar. There may be a slight increase in the markets in 2020 caused by some of the positive lending changes; lower interest rates, lower qualifying stress test rates and the new first-time buyer incentive program. These programs and changes will allow a small percentage of the population the ability to buy when they could not before the program. Also, the five year bond yields and mortgage rates (yes, there is a correlation there), are back at or have broken levels compared to five years ago.

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