Real estate sales start to increase in the North Okanagan

Things are picking up in the North Okanagan real estate market.

The Okanagan Mainline Real Estate Board reports March sales activities continued to increase, rising by 24 per cent from 75 sales in February to 93 in March.

Single family residential units sold in March increased by 35 per cent from the month before, up to 50 from 37.

"Putting this into perspective, the increase in residential units sold in March over February for the past seven years - 2002 to 2008 - has averaged 26 per cent," said Rob Shaw, OMREB director.

"The current increase in spring buyer activity has likely been boosted by improved affordability, record-low interest rates and federal incentive plans for first-time buyers."

Shaw said the average-priced home today is costing buyers 24 per cent less per month than a year ago, thanks to the lower interest rates and house prices.

Last month, the monthly mortgage payment on a home priced at $339,332 was $1,874. That's compared to $2,467 per month for a $384,745 home in 2008. The costs quoted are based on a down payment of 10 per cent, 25-year ammortization, charter bank-posted five-year fixed rate. They do not include property taxes or mortgage insurance.

"Increased affordability combined with a good supply of homes should add up to much more buyer activity as the weather begins to improve, and we start to see the 60-to-90-day periods for mortgage pre-approvals roll out," said Shaw.

The North Okanagan covers an area from Predator Ridge north to Vernon and Coldstream, and includes Falkland, Enderby, Grindrod, Armstrong, Spallumcheen, Lumby and Cherryville.

Published: April 11, 2009 12:00 PM

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