Below are the monthly survey results showing what people are buying and where they are moving from:

Property Type:
22.1% of purchases were by Move-Up Buyers
22.1% by First Time Buyers
13.2% moving from Single Family Home to Strata Unit
6.6% buying Revenue/Investment Property
5.1% moving from Strata property to Single Family Home 
3.7% moving into Retirement Home/Seniors Community
3.7% Recreation Property Buyers

Moving From: 
58.7% from Within OMREB Board Area
4.3% from Other Areas in BC
14.5% from Alberta
12.3% from Lower Mainland/Vancouver Island
4.3% from Other Areas in BC
3.6% from Saskatchewan/Manitoba
3.6% from Outside Canada
2.2% from Eastern Canada/Maritimes
0.7% from NWT/Yukon (second month reported)

Source: www.omreb.com 

Kelowna, BC – The Okanagan Mainline Real Estate Board (OMREB) reported October 2011 sales activity of all MLS® property types remained similar to this time last year and were down slightly from the previous month (September 2011) as the housing market continues to stabilize.

“Overall, the Okanagan-Shuswap market has experienced steady sales activity during the past six months of 2011. Most segments in our Board area have remained remarkably stable and continue to hold their own, despite comments on the state of the economy.  However, recreation and investment sectors remain sluggish as moderate economic recovery and modest job growth in BC, Alberta and across the country have impacted disposable income for potential buyers who are now looking south of the border for bargain properties,” says Rob Shaw, OMREB Vice President and REALTOR® in the North Zone. 

“The dramatic divide between the Lower Mainland and Interior markets has narrowed considerably as lagging consumer confidence and apprehension about making big purchases has cooled the overall demand in most BC markets,” he adds.  “Concerns about employment, personal debt load and net worth continue to be fuelled by economic uncertainty, equity market volatility and global instability.”

Central Zone (Peachland to Lake Country): Overall unit sales and sales volumes in the Central Zone dipped by 1.07% to 277 units ($106.4 million) compared to 280 ($135.5 million) last October, and were down 6.41% compared to the 296 units sold in September. Total residential sales last month slipped by 0.78% to 253 units compared to 255 last year, and were down 8.99% from 278 in September. Single family home sales of 125 units showed a 10.17% drop compared to 139 last year, and were down 13.79% from the 145 homes sold this September. October’s inventory of 4,761 units was up 3.37% compared to 4,606 in 2010, and the 834 new listings for the month rose 10.17% over 757 last year.

“With low interest rates continuing to positively impact purchasing power and the home you can afford, now is a good time to buy.  New listings are trending downward and inventory is staying in check, but there is still an ample supply and good selection of homes available in our market,” Shaw notes.

“Serious buyers are motivated by well-priced properties and room to negotiate, so sellers can benefit from working with a professional REALTOR® to price strategically at current values.  In this highly competitive market, homes with good curb appeal and listed by sellers with the sharpest pencils are being sold quickly.”

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.  Move-up buyers and first-time buyers are driving factors, and stimulate the chain of ownership.

Information provided by www.omreb.com. To find out about the advantages of using a REALTOR®, check out  www.howrealtorshelp.ca.  

Property Type:
22.9% by First Time Buyers
17.4% of purchases were by Move-Up Buyers
11.1% buying Revenue/Investment Property
10.4% moving from Single Family Home to Strata Unit
7.6% Recreation Property Buyers
5.6% moving into Retirement Home/Seniors Community
3.5% moving from Strata property to Single Family Home 

Moving From: 
50% from Within OMREB Board Area
18.8% from Alberta
10.4% from Lower Mainland/Vancouver Island
10.4% from Other Areas in BC
6.3% from Eastern Canada/Maritimes
2.8% from Outside Canada
1.4% from Saskatchewan/Manitoba

Source: OMREB

Kelowna, BC – The Central Zone of the Okanagan Mainline Real Estate Board (OMREB) reported August 2011 sales activity of all MLS® property types slower than this time last year and down marginally compared to July as a buyers’ market continues into the fall. During August, overall sales dipped 2.05% over last year (to 286 units from 292) and were down 16.12% over July (from 341), with sales volumes of $113.3 million compared to $155.7 million in 2010. Total residential sales last month were down 3.72% compared to August 2010 (to 259 units from 269). Single family home sales rose 1.54% over last year (to 132 compared to 130) – a 2.94% drop from the 136 homes sold in July. While inventory continues to decline over last year (down 1.23% to 5,230 units from 5,295), new listings for the month rose over last August (up 0.97% to 832 from 824) but declined 13.6% compared to listings taken in July (from 963). “The summer finished with steady home sales and stable home prices in the Central Zone. Most market segments continue to move along and hold their own in the Okanagan Shuswap, while the recreation and investment segments are still sluggish – being most affected by attractive U.S. opportunities and a slower than expected recovery in Canada,” says OMREB in the Central Zone. “Concerns over personal debt loads, net worth and employment fuelled by reports of American economic instability have cooled consumer confidence and overall demand in most BC markets, and volatility in the equity markets could result in further belt tightening and apprehension about making big purchases moving into fall. However, we’re hopeful the BC Government will reveal its HST transition plan quickly to alleviate some market uncertainty. ” OMREB notes, “Serious buyers are looking for well priced properties – recognizing that now is the time to buy while there is still a good selection of homes and room to negotiate, and knowing that higher interest rates anticipated later this year could impact their purchasing power and determine the home they can afford. Sellers can benefit from working with a professional REALTOR® to price strategically at current values and make the most of buyer activity. Homes with good curb appeal that are listed by vendors with the sharpest pencils are selling quickly in this competitive market. “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 ownership.

Newsletter produced by OMREB

MLS® residential sales through the Okanagan Mainline Real Estate Board area are forecast to remain relatively unchanged this year, albeit up by 0.6 per cent to 4,865 units. This follows a 15 per cent decline in unit sales in 2010. While local economic conditions are improving, as evidenced by a strong employment recovery, many recreation and investment buyers are bargain hunting in the United States. In addition, migration to the region has not yet fully recovered from its pre-recession level, pulling overall housing demand below the ten-year average of 6,700 units. Next year, improvement in consumer demand will be tempered by the impact of gradually rising mortgage interest rates on affordability and purchasing power. MLS® residential sales in 2012 are forecast to increase 5.9 per cent to 5,150 units. The average annual MLS® residential price is forecast to edge down 2.7 per cent to $384,000 this year, after increasing 3.9 per cent in 2009. While the inventory of active listings remains relatively high, the number of new listings to the market has pulled back sharply, suggesting that market conditions may soon trend toward balance. The average annual MLS® residential price is forecast to remain relatively unchanged in 2012, up by 0.3 per cent to $385,000. A substantial inventory accumulation in the Kelowna multiple market and an elevated inventory in the single detached market will hold back many prospective projects this year. Total housing starts in the Kelowna are expected to decline to just 800 units in 2011, with 350 new multiple starts and 450 single-detached starts. It is worth noting that the pace of construction would have to accelerate markedly from the levels observed in the first quarter of 2011 just to match the already depressed levels of 2010. However, household formation in Kelowna is projected to be very strong in coming years at 1,800 new households per year. Once current inventories are absorbed, we anticipate that construction will resume at a healthy pace.

First time home buyers get an exemption from paying the property transfer tax and this "tax break" can save first time home buyers thousands of dollars. However, first time home buyers need to carefully ensure that they qualify for this tax savings. Persons claiming a FTHB credit are regularly audited by the (PTT) property transfer tax office. The Criteria to Qualify are as follows. Purchaser must be a Canadian Citizen, or a permanent resident as determined by Immigration Canada. Must have lived in British Columbia for 12 consecutive months immediately before the date you register the property, or you have filed 2 income tax returns as a British Columbia resident during the 6 years before the date you register the property. Must never have owned an interest in land anywhere in the world at anytime, and have never received a first time home buyers’ exemption or refund. The Property you purchase must also qualify as follows. The price must be less than $425,000. The land must be less than 0.5 hectares (1.24 acres), and the property will only be used as your principal residence. Importantly, if you sell the property or acquire a new principal residence within 12 months of purchase, you will lose the exemption and the Province will demand for the tax to be paid.

More information here:

http://www.sbr.gov.bc.ca/documents_library/brochures/firsttimehomebuyer.pdf

Article by Peter D. Borszcz of Pihl Law Corporation

TORONTO, May 20, 2011 – An overwhelming majority of Canadians who have either purchased or who intend to buy recreational property in the next 24 months believe that buying a vacation home is a good long-term investment, according to a nationwide survey of Canadian attitudes towards recreational property ownership commissioned by Royal LePage Real Estate Services and run on the Angus Reid Forum.

Overall, the survey found that 89 per cent of current owners and prospective buyers agree that recreational properties are a good long-term investment. Broken down by region, this included 92 per cent of respondents from Alberta, 91 per cent of Ontarians, 87 per cent of BC residents and 81 per cent of people surveyed in Quebec.

When respondents were asked to compare recreational properties to the stock market in terms of providing a larger financial return on investment, 50 per cent said recreational properties provided a larger return. Only 29 per cent replied investing in the stock market, while 21 per cent were undecided.

“Canadians’ confidence in recreational property values is mirroring what we have been seeing in Canada’s urban centres,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “This spring, the horror stories from some fundamentally flawed international housing markets that had dampened demand for cottage-type living during the recession era, are being shrugged off.  Canada’s traditionally buoyant recreational property market appears to have found its groove once more.”

Interestingly, a majority of respondents (57 per cent) said that the expectation of interest rates rising will not affect their desire to purchase a recreational property. Among this group, 55 per cent of respondents aged 35-54 (and 70 per cent of respondents aged 55+) said an expected rise in interest rates would not affect their desire to purchase a recreational property.

When it came to financial and lifestyle sacrifices to purchase a recreational property, more than a third polled (35 per cent) responded that they were most likely to reduce personal spending throughout the year. The two least favoured strategies were to drive as far as necessary and to make the recreational property a primary residence, both 13 per cent.

“Relentlessly wet and miserable weather has delayed the 2011 buying season in some regions of the country.  But while weather delays intent, it doesn’t change it. The Royal LePage Recreational Property Report shows that the steadily improving economy has stoked consumer confidence which should impact demand positively. We expect to see considerable activity in the coming months – especially in higher-end and luxury segments,” added Soper.

More than half (51 per cent) of those polled said they are, or will be, renting out their property to offset their mortgage and other associated costs. However, many of those willing to rent plan to be selective (32 per cent) and only rent their recreational property to someone who have been referred by someone they knew.

“We are seeing more buyers purchase properties with the intent to offer them as rentals. This cost-offset strategy may allow younger families to acquire a cottage earlier in their lives than they would otherwise, and others may be able to buy in a region that would have been out of their reach, price-wise. The purchase motivation for most is not financial planning. It remains lifestyle driven – satisfying the needs and wants of their family,” said Soper. “In fact, 92 per cent of those we polled agreed that a recreational property is a great way to bring family together.”

The survey was commissioned as part of the 2011 Royal LePage Recreational Property Report, an annual market analysis of recreational property prices, trends and activity in selected leisure markets across the country.

Mortgage rates have thus far evolved in-line with our December 2010 forecast, with the 5-year fixed rate reaching 5.44 percent and the 1-year rate hitting 3.50 per cent in mid–February. Mortgage spreads (the difference between a fixed mortgage rate and the yield on Government of Canada bonds) have returned to historically normal levels and we expect these spreads to remain fairly stable in subsequent quarters. Therefore, the path of future mortgage rates will be largely determined by changes in government bond yields, which have moved significantly higher in recent months but are currently being pushed lower by world events. We anticipate that, barring a growth depressing and sustained rise in oil prices, yields will move gradually higher throughout the year as markets price in improving economic conditions and higher inflation expectations. Rising yields will in turn lead to higher mortgage rates, likely in the realm of 4.35 per cent for a 1-year and 5.90 per cent for a five-year fixed rate mortgage by the end of the year. Sentiment about the US economic outlook has improved dramatically in the two months since our last forecast. This is very good news for the Canadian economy and also very good timing as the economy is likely to face some headwinds in 2011 from potential consumer restraint, exchange rate pressure on exports and slowing residential construction. However, the increasingly positive economic outlook is already in danger of being swept aside by a looming crisis in the Middle-East and North Africa (MENA) region that is threatening spill-over to global markets and Canadian interest rates.

Sales of existing homes in Canada during the first quarter reached its highest level in a year due mostly to the voracious demand for houses in Vancouver and Toronto. 

The Canadian Real Estate Association said seasonally adjusted national sales activity in the first quarter was up 4.5 per cent over the previous quarter, and reached the highest quarterly level in a year as national sales in each of the first three months ran close their five- or 10-year monthly averages.

The association said most of the quarterly increase was due to demand in Vancouver and Toronto. A change to mortgage regulations on March 18 may have pushed up the sale of a number of homes in some of Canada's more expensive housing as sellers looked to "tradeup" before the changes took effect.

New mortgage rules announced by the Finance Department in January and took hold last month made the maximum payback period 30 years — resulting in somewhat higher regular payments than with the 35-year amortization that has been the choice of about 30 per cent of home buyers.

The rule changes increases the monthly payment on a $300,000 mortgage at four per cent interest by $105, but also reduces total interest paid by $42,288 over the life of a mortgage because it is repaid five years sooner.

The rush to buy in advance of the changes caused an artificially high price for newly listed homes as the national average price was skewed higher by strong activity in a few pricey areas of Greater Vancouver where the activity focused on condo sales. In March alone, house prices jumped 8.9 per cent year-over year.

"A record number of multi-million dollar property sales in Richmond and Vancouver West are pushing up average prices for Greater Vancouver, British Columbia and nationally," Gregory Klump, CREA's Chief Economist, said in a release.

If Vancouver is excluded, the national average price gain was cut in half to about 4.3 per cent.

But Klump said the impact of the mortgage changes are likely to be "minor over the near term." Instead, he said the widely expected view that the Bank of Canada will not raise interest rates until at least July "is supportive for resale housing demand, market balance and prices."

The central bank held its key lending rate at one per cent earlier this week.

Information provided by http://www.cbc.ca/news 

Bank of Canada Governor Mark Carney held his benchmark interest rate at 1 per cent Tuesday, balancing a stronger-than-expected domestic recovery against ongoing global threats and the Canadian dollar’s dampening effect on exports and inflation.

In explaining the decision to leave borrowing costs alone for the fifth consecutive meeting, as expected, the central bank hinted that it is getting ready to resume a tightening campaign some time in the coming months, by softening a reference in its statement to the amount of slack in the economy and saying it would be chewed up more quickly than expected. 

Information provided by www.theglobeandmail.com 

Kelowna, BC – The Central Zone of the Okanagan Mainline Real Estate Board (OMREB) reported March 2011 sales activity of all MLS® property types improved over last month but dipped compared to sales reported at this time last year when buyers were spurred into the market early in the first quarter to avoid the impending HST.  The local housing market continues to stabilize and show more balanced conditions moving into Spring.