Sales and Foreclosure Trends – Okanagan, BC

Even though the market is looking like it has settled and is not decreasing any longer, unfortunately, the number of foreclosures has increased and will probably continue to increase right into 2012. As you can see by the following graph almost 1 in 20 homes in 2011 were in foreclosure. That number has risen from one in 10,000 in 2008. As prices fall in any market place and mortgages are high, more and more people become what we call “upside down” with their mortgage. What that means - they owe more to the bank than what their house is worth. Often this results in foreclosure. We as Realtors have a tough job to do when we are asked what we think a house is worth. No one likes to hear that they are upside down in their mortgage; however, there is a silver lining. The market is ever so slowly turning. So if you can hang on or if you have the ability to buy a property, now is the time to buy. Real Estate is very cyclical and the cycles are about 6-9 years long. We have a graph in our office for Canadian Real Estate that goes back to 1890 and this graph clearly shows that the market has traveled in 6 to 9 year cycles for over 100 years. Why would our market be any different? What were we doing 9 years ago in 2002? We were just coming out of a recession. That is what we are doing today; just coming out of a recession. Those who took advantage in 2002 were rewarded. Those who take advantage today will be rewarded.

      Year              Total MLS Sales          Foreclosure Sales           % of Total Sales

      2005                        5,836                                16                                  -------

      2006                        5,248                                12                                  -------

      2007                        5,960                                15                                  -------

--------------------------------------------------------------the market begins to spin a little sideways commencing in the spring of 2008.

      2008                        3,603                                11                                 .003%

      2009                        3,808                                82                                  2.2%

      2010                        3,492                              135                                 3.9%

      2011                        3,612**                            162**                              4.5%

**  Represent pro-rated figures through the end of 2011.

      Pro-rated from figures obtained Nov. 15.

Bill Hubbard

Bill Hubbard

CENTURY 21 Executives Realty Ltd.
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