Is now a good time to buy Kelowna and Okanagan foreclosure homes?

The Central Okanagan foreclosure inventory is now starting to show signs of steady increases from month to month in 2011. The overall active foreclosure listings pale in comparison to the total inventory in the Central Okanagan which continues to be a good sign. Buyers ask me all the time if I foresee a huge influx of court ordered sales to the Kelowna real estate market? In my opinion, having watched how the local banks and lenders handle the foreclosure process the answer would have to be...no I don't. Reason being is banks and lenders reluctantly foreclose on homes until it is absolutely necessary (almost as if they hate to lose money or something). The process is very time consuming and very involved so it truly is a last resort for them to exercise!

It is worth noting that offering on a court ordered sale property is not always going to work out for a buyer. I like to remind my buyers that "there really is no guaranteed strategy to pick up foreclosure homes at greatly reduced prices."  I would suggest having a budget and sticking to it when it comes to placing an offer on a foreclosure home in order to avoid the idea of outbidding other interested parties just to be able to say that "you won"!  I call this the Ebay mentalitily wanting to beat out all other competing offers and then coming to the realization that you spent way more on the home than you really wanted to.

Foreclosure homes now in the $350,000 or less range are still the the most sought after and competed for homes in the courts. I cannot emphasize enough the importance of understanding the foreclosure process and how the BC Court System works prior to placing an offer on one of these types of properties.

There are currently 123 active foreclosures (as of July 18,2011) amongst the entire listing inventory for the Central Okanagan. There are currently 62 active foreclosures (as of July 18,2011) amongst the entire listing inventory for the North Okanagan. There are 4,961 active listings this month (including the 123 foreclosure properties) in the Central Okanagan.

Active Foreclosure Inventory Breakdown:

  • 8 Lots and Acreages (Ranging in value from $69,000 to $1.595 Million)
  • 4 Manufactured Home (Ranging in value from $45,000 to $149,000)
  • 63 Strata Properties (Ranging in value from $113,900 to $2.050 Million)
  • 48 Single Family Residential (Ranging in value from $169,900 to $2.908 Million)

Sold Foreclosure Properties for July 2011 to date:

  • One residential 2 bedroom, 2 bathroom condo originally listed for $219,900 and sold 118 days later for $209,000 in Rutland North.
  • One recreational 2 bedroom, 2 bathroom ski condo originally listed for $286,000 and sold 206 days later for $215,000 in Big White Ski Resort.
  • One residential 3 bedroom, 2 bathroom home originally listed for $289,900 and sold 36 days later for $280,000 in Rutland South.
  • One residential 4 bedroom, 2 bathroom home originally listed for $319,900 and sold 55 days later for $3205,000 in the West Kelowna neighbourhood Shannon Lake.
  • One residential 3 bedroom, 3 bathroom home originally listed for $354,500 and sold 71 days later for $340,000 in bedroom community of Lakeview Heights.
  • One residential 3 bedroom, 4 bathroom home originally listed for $459,900 and sold 145 days later for $427,000 in bedroom community of North Glenmore.

If you would like more information on the how Court Ordered Sales work in Kelowna, West Kelowna and the Central/North Okanagan please call or text me at (250) 808-7700 or email:jason.neumann@century21.ca

Sincerely,

Jason Neumann

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