Summer buyers sold on the Okanagan-Shuswap

Ever wonder where home buyers come from?  Since September 2010, the Okanagan Mainline Real Estate Board (OMREB) has been collecting information from its members with regards to where buyers are coming from -- both geographically and demographically.  The purpose of collecting the data is to add another element to OMREB market knowledge and a better understanding of current trends.  The longer the record, the more insight the Board will have.

Results of OMREB's new Board-wide monthly Buyers Survey indicate that serious buyers are taking advantage of the current market and leveraging their positive purchasing power while it lasts.  Buyer profiles gathered through each monthly survey includes property type, family dynamic, financing and ares moving from and to.

On average during the past 11 months (September 2010 through July 2011), home buyers have been coming from:

• within the OMREB Board area: 57.63%
• Alberta: 13.93%
• Lower Mainland/Vancouver Island: 12.5%
• other areas of B.C.: 7.75%
• Saskatchewan/Manitoba: 3.37%
• Eastern Canada/Maritimes: 2.79%
• outside Canada: 2.04%

During this period, move-up buyers accounted for 23.87% of the purchasers while firstt-time buyers comprised 23.87%.

Real estate markets can be driven by local demand, demand stemming from outside the region or province, by international sources, or by a combination of all three.  Knowing how many homes are sold and at what price is an important part of the picture.  However, understanding who your buyers are and where they are from can reveal not only market dynamics but also identify which factors actually drive the local demand.  For example, a change in entry level buyer activity can have a ripple effect throughout the entire market as many move-up buyers rely on first-time buyers to purchase their existing homes.  First-time buyers are a driving factor and they stimulate the chain of ownership.

Low interest rates and attractive pricing alone don't necessarily mean increased sales activity.  Many additional factors affect consumer confidence, including local employment opportunities and the overall economic environment.  Real estate markets can also react differently on the influence of various buyer segments.

Housing markets in Vancouver, for example, are bolstered by off-shore buyers, while the Alberta market is closely linked to natural resource prices and their job market.  Since a sizable proportion of Okanagan-Shuswap sales come from buyers that originate outside our region, 40% being non-local, we need to keep an eye on Alberta and the Lower Mainland.  The monthly Buyers Survey helps to do just that.

So if you were curious as to what is moving the Okangan-Shuswap real estate market, this is a bit of insight!

OMREB area covers the Central Okanagan, North Okanagan and Shuswap - from Peachland to Revelstoke.

JULY 2011 SURVEY SUMMARY

• 26.06% of the purchases were by Move-Up Buyers
• 14..0% by First-Time Buyers
• 11.5% moving from Single Family Home to Strata Unit
• 9.3% buying Revenue/Investment Property
• 4.7% Recreation Property Buyers
• 4.0% moving into Retirement Home/Senior Community

BUYER CATAGORY

BUYER DEMOGRAPHICS -- FAMILY STATUS

BUYER FINANCING

BUYER MOVED FROM

AREA PROPERTY PURCHASED

(SOURCE: OMREB)