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  • 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 September Okanagan Real Estate Stats and Update

    Rom’s September Okanagan Real Estate Stats and Update

     

     

    Central Okanagan

    “Unusual market activity seems to be the theme this year, although not surprising considering there is nothing normal about 2020.  The pandemic has definitely made people look at things differently.  We are seeing higher demand likely due to post-quarantine lifestyle changes.
    The Pandemic lifestyle changes (who doesn’t want to live in the Okanagan), still record low mortgage rates, very low listing inventory and a continuing migration of buyers from the Lower Mainland are driving up prices from in particular single family homes to record highs.  The Albertan buyers were only making up 7% last month, likely due to the effects of the Pandemic to the oil and gas industry.  The Benchmark home price (better representation than average or median house prices) was $710,700, up 6.3% from September 2019!  It is also remarkable that the sales activity in the one million and up range tripled this year.
    It is interesting to note that the largest type of Buyers are couples without children (29%) last month, followed by couples with children (24%), see graphic. This led me to believe that more semi-retired and retired couples aremoving and purchasing in the Kelowna area.  Overall, 41% of all the buyers were out of town buyers!  Also noticeable is the large amount of first time home buyers last month, 24% of all the buyers.
    The average number of days to sell a home, always a good barometer to watch, barely nudged over August’s 89 days, coming in at 90 days.

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    BC Overall market

    The British Columbia Real Estate Association (BCREA) reports that a total of 11,368 residential unit sales were recorded by the Multiple Listing Service® (MLS®) in September 2020, an increase of 63.3 percent from September 2019. The average MLS® residential price in BC set a monthly record of $803,210, a 15.3 percent increase from $696,647 recorded the previous year. Total sales dollar volume in August was $9.1 billion, an 88.3 per cent increase over 2019.
    chart

    “The provincial housing market had a record-setting September,” said BCREA Chief Economist Brendon Ogmundson. “Both total sales and average prices were the highest ever for the month of September as pent-up demand from the spring pushes into the fall.”

    “Average prices are skewing higher as demand for space during the pandemic drives sales of single-detached homes,” added Ogmundson. Total provincial active listings are still down about 12 per cent year-over-year, with some markets even more under-supplied as the pandemic continues to keep listings low.  Year-to-date, BC residential sales dollar volume was up 25.1 per cent to $49.7 billion, compared with the same period in 2019. Residential unit sales were up 12.5 per cent to 65,023 units, while the average MLS® residential price was up 11.2 per cent to $764,298.

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

  • 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!