RomRealty

Tag: real estate investing

  • 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

  • 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.

  • 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.

  • Emigration Expo 2020

    Emigration Expo 2020

    Emigration Expo 2020 in The Netherlands!

    I am excited to share that I will once again have at booth at the Emigration Expo in Europe! This is a great opportunity to go overseas and promote the amazing lifestyle we live here in Kelowna. Do you have a home or business for sale and want to promote it internationally? Contact me today and we can set up a meeting to discuss.

    What is the Emigration Expo?

    The Emigration Expo is held on February 8 and 9, 2020. With about 11,000 visitors, the Emigration Expo is Europe’s largest event for emigrants, expats, job seekers, entrepreneurs and anyone else looking to live abroad. The Emigration Expo is about information, orientation and doing business. There are 3 halls with an area of 12,000m² and about 200 exhibitors and free lectures and presentations. The Emigration Expo is a must for everyone planning to move abroad, temporarily or permanently.

    My sister, Pauline and I, in front of my booth at the Emigration Expo in 2019.

    Do you want a FREE ticket to the Emigration Expo?

    The first 50 people to click here can get a free ticket to the Expo! Let me know if you will be attending, I would love to see you there!  My booth number is #230 in Hall 2.

    Do you want more information for immigration, live and work in Canada? Please fill out the form here and I will contact you shortly.

  • 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!

  • New First Time Homebuyers Incentive Program!

    New First Time Homebuyers Incentive Program!

    New National Housing Strategy Means Good News for First-Time Home Buyers

    The new strategy is a ten year, $55 billion plan said to give more Canadians across the country a home. Check out the images below for the new incentive program details. If you are a first-time home buyer then you must check this out!

    Click the images below to enlarge the First-Time Home Buyer Incentive Program brochure!

     

    To read more about the National Housing Strategy visit the Canada Mortgage and Housing website here.

  • SOLD!! RUTLAND FAMILY HOME FOR SALE!

    SOLD!! RUTLAND FAMILY HOME FOR SALE!

    SOLD: 1085 ELWYN ROAD, KELOWNA, BC

    $569,900

    SOLD!! 

    Family friendly South Rutland home for sale! This 2700 sqft home features 3 bedrooms, 4 bathrooms and a large rec room and bonus room in the basement. On the main level there is a large formal living and dining space. The open-concept kitchen and family room area gives access to the private, fenced-in backyard, perfect for entertaining. The double car garage has ample room for storage and there is also a large driveway with plenty of space for parking. This desirable location is close to shopping, schools, transit and many other amenities. Recent upgrades include a new roof and new washer and dryer. Great neighbours and the quiet, relaxing setting makes this a very desirable home!

    For more information or to schedule a viewing call Rom Houtstra at (250) 317-6405 or click here!

  • What Buyers should know about Kelowna Real Estate

    What Buyers should know about Kelowna Real Estate

    I have experienced a lot of buyers in Alberta, Northern BC, Saskatchewan and Manitoba who still think that Kelowna is so expensive, yet you can find a great WATERFRONT resort style condominium in premium downtown Kelowna with the possibility of a boat slip in the low $400’s! How about renting out these condo’s short term for $1,400-$1,600 per week in the Summer and the same amount per month in the off season? Especially the recreational market in the Okanagan has been hit hard due to the fierce competition of homes in Arizona and Nevada and the almost abundance of new resort style properties that has been built outside the Okanagan region.

    The increasing value of the US dollar, bottom low mortgage rates and the improved economy in the Okanagan is turning around this depressing (recreational) market. My opinion is that between now and the end of 2015 the best opportunities will occur to get into the Okanagan real estate market.

    Buyers, the time is now to get off the fence, you will be surprised, as many of my Prairie friends, what a great property deals are out here in Kelowna.

    Please don’t hesitate to contact me if you would like to know more about the opportunity to buy and live in our beautiful Okanagan Valley.