There are currently 84 active foreclosures (as of April 7,2011) amongst the entire listing inventory for the Central Okanagan. There are 4,423 active listings this month (including the 84 foreclosure properties) versus 4,108 listings last month, a 7.67% increase in overall inventory levels.
Active Foreclosure Inventory Breakdown:
6 Lots and Acreages (Ranging in value from $95,000 to $1.595 Million)
3 Manufactured Home (Ranging in value from $47,000 to $149,000)
32 Strata Properties (Ranging in value from $169,900 to $2.336 Million)
43 Single Family Residential (Ranging in value from $239,000 to $2.908 Million)
Sold Foreclosure Properties - March 2011 Breakdown:
10 Strata Properties (Ranging in value from $135,00 to $630,000) with the Carrs Landing neighbourhood having the most approved sales (6).
16 Single Family Residential (Ranging in value from $239,000 to $2.908 Million) with the Lakeview Heights neighbourhood having the most approved sales (4).
*There were no Building Lot or Manufactured home sales in March!
The Central Okanagan foreclosure inventory continues to show steady declines 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/or 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!
In March I attended a court date for some buyers that were interested in placing an offer on a West Kelowna area home. This home had been on the market for a long period of time before an accepted offer materialized. In this particular scenario my buyers waited until the court date was set before they started their due diligence period. They opted to wait in order to gauge what the lender was looking for in an offer. This also allowed my buyers the chance to have a home inspection on the home and chat with local city officials about the subject property. These buyers had offered on another court ordered sale in February and lost, so this time around they wanted to be ready to beat out any other competing offers. At the end of the hearing, my buyer's offer was the one the courts approved and we beat out the original offer that triggered the court date. Safe to say they were quite happy and I even got a hug or two,LOL :-)
It is worth noting that offering on a court ordered sale is not always going to work out for a buyers. I like to remind my buyers that "there really is no guaranteed strategy to pick up foreclosure homes at greatly reduced prices."
Foreclosure homes now in the $400,000 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.
If you would like more information on the how Court Ordered Sales work in Kelowna, West Kelowna and the Central Okanagan please call or text me at (250) 808-7700 or email: jason.neumann@century21.ca
Sincerely,
Jason Neumann