Kelowna Real Estate information by Dave Beeson

You may be reading of a recovery in the real estate markets right across the country... is that true in Kelowna?

I personally think so, but with a reserved optimism. Certainly the REALTORS that I talk to in the Vancouver, Edmonton and Calgary markets are talking about how much busier they are. A month or so ago I met a builder who was building $1.2MM spec homes in one of those markets and could not build them fast enough. But, let's face it, that is not happening here yet in the central Okanagan.

So what is? I would say that we are seeing growth almost across the board in market appetite, absorption and in certain instances, pricing. Are we seeing that "problem solving turn around" that we have all been hoping for that will make all of our blues go away... not at all in my opinion.

What is clear now, is that the doom and gloom cast by the many amateur real estate investors who spent time in prophesying the decline to "normality" of all real estate prices across the board to a place where they would relate to average incomes in the Okanagan has not happened. The fact that they predicted once the prices had declined they would not climb again is clearly not happened either. But what is happening?

What I think we are seeing is a slight increase in confidence and a slight reduction in inventory levels giving us a slight lift in the market, which is a welcome break form the past 18 months. There is no need to get carried away. Despite the inaccurate predictions of crashing markets in the Okanagan, which some would forecast were going to be more dire than any other areas of North America, we actually came off quite lightly. Our market has and will continue to be buoyed by the fact that many people investing in the Okanagan do so with cash, or at least large amounts of it. While we have seen overbuilding in the condominium sector in particular, many people invested in that product type are able to hold and wait for recovery. Others will sell to capitalize on what they consider to be better investment opportunities.

If we look at September stats from the local board, month over month last year, what is evident is that we have moved approximately 50% more units, that is good growth in anyone's books, and we have seen acreage and waterfront prices rebound by almost 14%. That tells me that the smart money is back in town and that is good. A rising tide floats all ships and while we are heading into a quieter real estate season traditionally, you can bet that the statistics should be getting better from here.

In terms of whether you should be buying or selling, that remains a personal opinion. If I was an investor, I would be looking at values now and starting to make some moves on properties that will start to cycle back in terms of values. If I am a homeowner, looking to move up, I would be checking into average list times in my neighbourhood, time of year for success ratios I could predict, and whether the house I am looking to move into still represents good comparative value in today's market.

What is for sure, is that we can all look forward with hope to 2010 knowing with some degree of certainty that it will be a better year economically for many people. As usual, please contact us or your trusted REALTOR to help put a plan together for your next move.