June 2012 Market Statistics

OkanaganShuswap Housing Market Ends Second Quarter with Double Digit Gains

Kelowna, BC – The Okanagan Mainline Real Estate Board (OMREB) reported June 2012 sales activity of all MLS® property types showed marked improvement compared to the same month last year and the first half of 2011, as the housing market shifts into more balanced conditions and records double digit gains during the second quarter of this year.

“During the past three months straight, the Okanagan‐Shuswap has experienced a marked increase in sales activity – leveling off a bit in June (15%) compared to May (19%), as thoughts turned to the end of school and family vacations.

Renewed buyer interest and consumer confidence are still on the rise and expected to see ongoing improvement as summer unfolds,” says Rob Shaw, an active REALTOR® in the North Zone and OMREB President.

“While the market has softened in the Lower Mainland, the Interior continues to see the greatest growth in unit sales and the Okanagan is now leading the province,” Shaw notes. “Sales activity in all three zones and in most segments has strengthened. June saw significant improvements in apartment and townhouse activity throughout the Board area, and single family residential sales remained strong. Total residential sales year‐to‐date have improved over 2011 – up 12.4% in the North Okanagan, 8.6% in the Central Okanagan, and 6.8% in the Shuswap.”

Shaw reports, “Overall sales were the strongest in the Central Okanagan in June with a 17% improvement over 2011, and with gains of 49% for apartments and 43% for townhouses. In the Shuswap, total units sold picked up 14%, while the apartment segment jumped from zero sales last year to 8 this month, and rose dramatically (230%) year‐to‐date with 33 units compared to 10 in 2011. The North Okanagan saw a 9% increase in overall sales this month with apartments showing the biggest improvement – up 38% compared to units sold last year at this time.”

“As the second quarter of 2012 comes to a close, the outlook for OMREB is positive as overall demand in our market continues to strengthen and improve along with the slow but steady economic and employment growth,” Shaw reports.

“We are trending towards the bottom end of a buyer’s market and shifting back to more balanced conditions with less downward pressure on prices. Inventory is stable in all residential property types so there is still an attractive selection of homes to choose from, and prices remain fairly solid.”

He notes that, “The tightening of mortgage rules to a maximum amortization period of 25 years and reducing the maximum to refinance to 80% of the bank’s assessed value of the property will affect affordability, especially for those consumers with less than 20% equity in their homes. And, for first‐time buyers, the effect will be akin to a 1% mortgage rate increase. However, ongoing favourable interest rates are expected to continue to underpin home sales for the most part going forward.”

With the dynamics in the OMREB Board area, there are up and down fluctuations in each zone – depending on the community, housing type and price point. Now more than ever, it is important for anyone thinking of buying or selling to ask their REALTOR® how their property type is currently faring in the overall market and, more significantly, in their particular neighbourhood. Working with a real estate professional to understand current local market conditions and to provide comparisons specific to your area is essential as home values vary based on type and location.

Consult with your REALTOR® to make sure your pricing is strategic. Price continues to be of utmost importance when selling a home as serious buyers are motivated by well‐priced properties with great curb appeal and room to negotiate. Buyers and sellers need to come together with realistic expectations if they are serious about closing the deal.

Central Okanagan

Sales 79
New Listings 160
Current Inventory 977
Sell/Inv. Ratio 8.09%
Days to Sell 130
Average Price $246,012
Median Price $225,000

Sales 63
New Listings 125
Inventory 540
Sell/Inv. Ratio 11.67%
Days to Sell 129
Average Price $315,846
Median Price $314,000

Sales 19
New Listings 60
Current Inventory 809
Sell/Inv. Ratio 2.35%
Days to Sell 195
Average Price $167,657
Median Price $170,000

Sales 205
New Listings 442
Inventory 1,775
Sell/Inv. Ratio 11.55%
Days to Sell 84
Average Price $475,019
Median Price $425,000

Ratio of Sales vs Inventory 9.30%

North Okanagan

Sales 11
New Listings 26
Current Inventory 162
Sell/Inv. Ratio 6.79%
Days to Sell 153
Average Price $158,136
Median Price $158,000

Sales 20
New Listings 50
Current Inventory 251
Sell/Inv. Ratio 7.97%
Days to Sell 126
Average Price $292,292
Median Price $274,875

Sales 9
New Listings 49
Current Inventory 537
Sell/Inv. Ratio 1.68%
Days to Sell 286
Average Price $172,650
Median Price $177,000

Sales 85
New Listings 165
Current Inventory 790
Sell/Inv. Ratio 10.76%
Days to Sell 81
Average Price $357,245
Median Price $329,900

Ratio of Sales vs Inventory 8.95%

Totals include variables in any given, due to preceding month's collapsed sales and deleted listings. e & oe

Amanda Westrheim

Amanda Westrheim

CENTURY 21 Assurance Realty Ltd.
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