Buyers market prevails as summer continues

The Central Zone of the Okanagan Mainline Real Estate Board (OMREB) reported July 2011 sales activity of all MLS property types improved significantly over sales at this time last year but were down compared to June as a buyers' market continues into the summer months.

During July, overall sales improved by 36.95% over last year (to 341 units from 249) and were similar to June (343), with sales volumes of $139.4 million compared to $111.2 million in 2010.  Total residential sales last month were up 36.04% compared to July 2010 (to 302 units from 222), and single family home sales rose 24.77% over last year (to 126 compared to 109), but were down 25.27% from June (182).  While inventory continues to decline over 2010 - down by 3.49% to 5.322 units in July compared to 5,525 last year, new listings for the month rose by 5.48% over last July (to 963 from 913), a 11.97% decline over June listings (from 1, 094).

"July home sales were down in most markets in the province compared to June with sales activity mirroring 2001/2002 pre-recession levels.  Significant inventory, coupled with a lull in overall demand, weak economic performance and negative reports regarding debt loads have cooled consumer confidence despite positive population and job growth in B.C" says OMREB's Director and REALTOR in the Central Zone.  "Some market segments are holding their own in the Okanagan-Shuswap while others like the recreation and investment segments are down.  We are hopeful the current warm weather and influx of potential out-of-town buyers will result in modest gains during August."

OMREB's Director and REALTOR notes, "Serious buyers ares seeking well-priced properties in the Central Okanagan, recognizing that now is the time to negotiate while there is still a good selection of homes and less competition on offers, and while mortgage rates continue to remain favorable.  They are looking to avoid interest risk, knowing that higher rates anticipated later this year will impact their purchasing power and determine the home they can afford.

The results of OMREB's Board-wide monthly Buyers Survey profiling who the buyers are, what they are buying and where they are from shows that the majority of buyers are from within the Board area. First-time buyers and move-up buyers are a driving factor, and stimulate the chain of owership.

(Source: OMREB Media Release August 2011)

Check out some recent year-to-date market snipets I've prepared::

Single Family Residential Update for Kelowna

Single Family Residential Update for Kelowna and West Kelowna

Strata Update for Kelowna

Strata Update for Kelowna and West Kelowna

Lot and Acreage Update for Kelowna and West Kelowna