HAVE PRICES ROLLED BACKWARDS?
HAVE PRICES ROLLED BACKWARDS?
Not as much as you may be being told. In fact recently, a chart
produced by the local real estate board showed that most median prices
had rolled back to a 2007 level. That can't be... all the talk in the
real estate forums is of us having reached 30% discounts already and
more to come. Well if truth were told, we are seeing lower valued
properties purchased that are lowering the median value. Recently a
condo in the Verve sold for $140,000. Sounds cheap? It was good value,
because you do not have much selection at that level, yet, it
represents a sale value of $428 per square foot...on par with the last
few years and more! What are we to believe? Have values gone down or is
there a different motivation in the market at the moment?
We are certainly seeing plenty of activity in the sub $400,000 area
and I am hearing every week of buyers who were too patient and missed
their opportunity to buy that just right home, however, we will be here
for a little while longer as some of the excess inventory is absorbed.
Here is the good news. Calgary and Edmonton and Vancouver are all
returning to a more balanced real estate market with absorption rates
higher, listings lower and buyers and sellers agreeing on values. As we
see more and more people deciding to make retirement decisions and
choose the Okanagan as the location we will once again see similar
patterns here.
One large influence in the market I believe will be the
60-something-year-old oil and gas exec/entrepreneur who having lived
through a very challenging couple of years, may well make the decision
that it is time for the young bucks to see the company through the next
few years and opt for early retirement and a higher quality of life.
Coupled with this trend will be the interest from foreign markets
as they look at the strength of Canada's banks, stability of the real
estate markets and the careful management of an economy that has fared
well domestically.
We still have the opportunity to see a bright year for 2009 and that is where I will hedge my bets.
Filed under: homes for sale in the okanagan, homes for sale in kelowna, house values, property for sale in kelowna, housing prices in kelowna, kelowna housing forecast, kelowna real estate, kelowna homes for sale, okanagan rural property for sale, okanagan vineyards, okanagan wineries, Real Estate prices in kelowna, real estate prices in okanagan, kelowna real estate prices, okaganan real estate prices, kelowna real estate developments, okanagan real estate developments, business opportunity in kelowna, economy news, british columbia economy, kelowna economy, real estate market in canada