MARKET UPDATE:
Long time since a post as things have been fairly quite in the Southern Okanagan. We always try to put our best face forward here but the "Great Recession" has clearly taken the wind out of our sails. Locally, a debate rages about trying to attract a new Prison that the government wants to locate somewhere in the Okanagan Valley. While some feel it conflicts with the image of Wine Tourism carefully crafted over many years, others point to the economy and the need for jobs.

The Real Estate market continues to take a hit with buyers out of Alberta focused on the Southern US of A because of the significant post recession price slump. However, more and more articles appear warning buyers of US property of the regulations associated with such purchases.

As our weather tips towards Spring more out of towners are recognizing a clear "Buyers Market" with all the advantages of "being Okanagan" becoming obvious again. The Vancouver market is definately hot with Mainland Chinese money coming into play and so we want to entice some of those 'new purchase' dollars up here.

As many will acknowledge it is still the question of; "what are the Boomers doing?" As an excited Boomer myself I have recognized for 10 years that whatever I am thinking in terms of investment is being thought of by 75% of the population! So I have flirted with buying property in Arizona, seriously contemplating Mexico and looking at reorganizing my personal wealth plan by selling a shared condo investment in Vancouver. Typical? Well, just maybe.

All said and done though, the Okanagan still holds a mystic as a safe, appealing lifestyle investment and with the price point now much more realistic on properties throughout the market, people will return to look seriously at an investment opportunity.

How To Protect Yourself

http://money.ca.msn.com/banking/homebuyersguide/article.aspx?cp-documentid=26127042

Interesting article here for my anyone with Real Estate investments to read. Realtors hate the 'negative' news but reality suggests we had better be advising our clients on news form all different sources.
Also posted on my Facebook site.

NO BUBBLE HERE!

ReMax Kelowna's Cliff Shillington reacts to the report from the Canadian Centre for Policy Alternatives recently by say their warning of a housing bubble does not relate to the Kelowna area.
I have to agree.
Cliff points out that for such a situation to occur you need, "rapidly rising prices meeting a big increase in mortgage interest rates forcing people to sell and prices to drop in all the freefall activity". Clearly, as he suggests, we do not have any of that in the Okanagan.
Prices have remained steady over the last two years and it is expected that interest rates will stay near their historic lows and the real estate market will remain flat.
This is one of the best reads of the situation I have read so far!

CMHC Stats

New CMHC stats show housing starts are down and suggest that the housing sector will not be a factor in economic recovery. The drop is explained in part by higher interest rates and stiffer mortgage qualification requirements.
Interesting discussion is included around an independent report that talks of the potential for a housing bubble in several urban markets. It also points out that historically "house prices have tended to hover within a narrow range of between 3 and 4 times the annual median income" but that currently they are from 4.7 to 11.3 that amount.

THE FUTURE OF REAL ESTATE

Just picked up an article from the Seattle Times which I have posted on my Facebook page and Linkedin site. Be sure to read it!
It says in plain language that "People shouldn't look at a home as a way to make money, because it won't". It points to the current dip in activity as the new reality in the market for the years to come.
"Wealth generated by housing in those decades (the second half of the 20th century), particularly on the coasts, did more than assure owners a comfortable retirement. It powered the economy, paying for the education of children and grandchildren, keeping cruise ships and golf courses full and restaurants humming. That era is probably gone for good."
This article is well documented and goes a long way to explaining what may lie ahead in the industry.
Enjoy!

Where is the Market?

I am posting articles that I find on the Real Estate market to my Facebook and Linkedin sites as a way of trying to keep readers informed as to what is going on out there. As a former educator I have always had an interest in NEWS and believe by following it closely one can stay on top of current trends.
Two new articles posted this week, one entitled 'Personal Finance: The retirement process', is a great article for Baby Boomers and how they can prepare for retirement so that when the day arrives they have everything in order. Such novel suggestions as; "One the day that you retire, you'll want to spend a lot of money", gives readers a lot to think about!
The second article 'Existing home sales fall, new sales tax blamed', gives a brief update on the possible impact of the HST on house sales in Ontario and BC. As we weather another slowdown in market activity here in the Okanagan I try to collect articles like this to give readers an idea as to what is happening.
Stay tuned!
David

August Issue: RE/MAX Western Canada Region Update

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