5 Reasons this might be a good time to buy a home

According to a recent news release from British Columbia Real Estate Association (BCREA), August 2011 versus 2010 year-to-date residential listing serivce data by board shows some B.C. boards with:

• both decreased sales and average price which is characteristic of the Okanagan Mainline Real Estate Board along with the Chilliwack, Kamloops, Kootenay, South Okanagan, Northern Lights, Vancouver Island and Victoria Real Estate Boards
• increased sales yet decreased average price in the Powell River Real Estate Board and
• increased sales with increased average price in the B.C. Northern, Fraser Valley, Greater Vancouver Real Estate Boards.

Kelowna is in the Okanagan Mainline Real Estate Board which has experienced less house sale activity ytd as well as weakening house prices ~ all the makings of a buyers' market!

As a result here are five reasons this might be a good time to buy a Kelowna or West kelowna home:

• 1. HOME PRICES.  Kelowna area home prices have adjusted down significantly in many neighborhoods, when compared to prices a year ago.  Lower prices - affordability - may allow you to consider housing options across a wider choice of Kelowna and West Kelowna neighborhoods.

KELOWNA SINGLE FAMILY  RESIDENTIAL MEDIAN SALE PRICE

WEST KELOWNA SINGLE FAMILY RESIDENTIAL MEDIAN SALE PRICE

• 2. HOUSING SELECTION.  While there is still a wide range of Kelowna area homes available, a softer housing market may mean you have less competition.  This can relieve pressure on you to offer a higher price or to make a hasty purchasing decision.  Be aware though, that unlike many of  our U.S. counterparts, sellers in the Kelowna area generally are not under pressure to sell.

KELOWNA SINGLE FAMILY RESIDENTIAL ACTIVE LISTINGS

KELOWNA SINGLE FAMILY RESIDENTIAL MONTHS OF INVENTORY

WEST KELOWNA SINGLE FAMILY RESIDENTIAL ACTIVE LISTINGS

WEST KELOWNA SINGLE FAMILY RESIDENTIAL MONTHS OF INVENTORY

• 3. INVESTMENT.  Owning your primary residence has almost always been a good way to build equity.  Real estate, over long term, has tended to rise in value despite flunctuations.  Plus, when you eventually sell your home, the capital gains are likely to be tax-free.  Since you're paying rent anyway, why not put that money toward a place you will eventually own?  You'll also be able to customize your space the way you want it.

• 4. INTEREST RATES.  Mortgage interest rates, firmly in the single digits, have been at historically low levels.  This can help keep the cost of financing an entry level home relatively affordable.

• 5. PERSONAL TIMING.  The most important reason to own a home is that it's the right time for you.  If owning a home is a high personal priority and if your financial situation is sound -- you have a steady income and manageable debt load -- then that could be the most compelling reason to start looking.  Remember, there's no 'right' or 'wrong' time to buy.  Since it's almost impossible to time the market, the ideal time to buy a Kelowna area home is usually when you are ready.

Source of Graphs: OMREB