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  • 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.
  • Kelowna condos – Now a good time to buy or sell?

    Kelowna condos – Now a good time to buy or sell?

    Is it now a good time to buy or sell your condo?

    These have been challenging times for all of us and some of the real estate market sectors have been and will be hit harder than others.

    I am expecting the condo market to take quite a hit; maybe not right away but over the next few months.  When comparing the condo market from April & May 2019 to April & May 2020, the Median Condo prices are already down by 7%.

    I feel that these are the main contributors to this happening:

    1. Market saturation of new condo’s, especially in the downtown core of Kelowna

    2. New tightening rules of CMHC that will be in effect as of July 1, 2020.  This will make it more difficult for (first time) home buyers to qualify for financing

    3. Mentality shifts as a result of the COVID-19 pandemic. Buyers prefer to live in a single family home with their own yard rather than dealing with elevators and small living spaces.

    Therefore, I expect that the demand for 1/2 duplexes, townhomes and single family homes will increase.  However, I don’t think the market of condo’s under the $425,000 price mark will be touched by this.  This is simply because at that price point there is no alternative to a condo.

    Please remember that this is just the real estate world according to Rom.

    Have a real estate question? You can contact me anytime by text, phone or email.  I would love to have a chat with you to discuss the market or your buying/selling plans. I look forward to hearing from you!

  • 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.

  • KELOWNA CONDO CLOSE TO DOWNTOWN!

    KELOWNA CONDO CLOSE TO DOWNTOWN!

    FOR SALE: 205-1125 BERNARD AVE, KELOWNA, BC$289,800

    PRICE REDUCED!

    Spacious and inviting one bedroom, two bathroom condo close to downtown Kelowna. This large condo features 9’ ceilings and an open floor plan kitchen, dining and living space complete with nice laminate flooring and a cozy fireplace. Just off the living room is a large outdoor deck with excellent privacy. The master bedroom features brand new carpet and its own ensuite bathroom.

    Along with another full bathroom, this condo comes with a laundry room that is spacious enough to use as storage. Also included is a separate locker room for storage and secured underground parking with security cameras. There are no rental restrictions and one pet (under 20lbs) is allowed. Excellent location with shopping and a bus stop only steps away.

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

  • 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.

  • PEACEFUL & PRIVATE 6 BEDROOM SUMMERLAND HOME!

    PEACEFUL & PRIVATE 6 BEDROOM SUMMERLAND HOME!

    FOR SALE: 6015 JOY AVE, SUMMERLAND, BC$579,900

    PRICE REDUCED!!

    Peaceful and private 6 bedroom, 2 bathroom home in desirable Trout Creek! This home is located at the end of a no-thru street and surrounded by orchards making it very quiet and tranquil. The home features 3 bedrooms upstairs, with a large open-concept living and dining room which opens to a large kitchen, perfect for entertaining. Downstairs you will find a large family room with 3 more bedrooms, laundry room and space to put in a third bathroom. The home has a fireplace on each level and the bathrooms feature heated floors.

    The backyard is beautiful and park-like with a large covered deck, hot tub, chicken coop and plenty of room for a garden or children’s play area! Also included is an enclosed shop below the deck and large shed. There is ample room for parking as well as a 50-amp separate RV service. There is also gas onsite. Are you looking for a mortgage helper? This home is ready for a guest suite to be completed on the lower level! This is a must-see home!

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

  • Rom’s Kelowna Real Estate Opinion for June 2019

    Rom’s Kelowna Real Estate Opinion for June 2019

    June 2019 Real Estate Report:

    *Click the images to enlarge

    Market summary for the first half of 2019

    The market is remaining steady to our predictions of a soft correction for this year.  Even though most of the stats report a decline, the absorption, (which is the stat that illustrates the balance of supply and demand) is still above normal for a balanced market. Usually, a balanced market will have an absorption of 12 to 14%. Central Okanagan is slightly above that. The other factor is that realtors are still reporting heavy competition in offers below $600,000 in the Central Okanagan area. In general, buyers in this price range are still having trouble finding decent, well-priced listings to buy that do not already have offers on them.

    Overall, the market in the Okanagan-Shuswap region are the best they can be. In other words, they are strong yet sustainable. We must be careful not to compare too heavily to markets from years 2007 and 2016. We must look at our present day market as busting. 2007 and 2016 were not normal market years. They were booms. We are now steady and balanced. See below for the first half year comparison from 2018 to 2019 for Central Okanagan. As always, this is just the Real Estate World according to Rom.

    Statistical Comparison of Jan-June 2018 and Jan-June 2019
    Jan-Jun % Change
    Avg. Price $639,792 -5%
    Absorption 14.8% -30%
    Sales 163 -15%
    Inventory 1067 +18%