Housing Market Starts to Stabilize

by Castanet Staff - Story: 48831
Aug 15, 2009 / 1:00 pm

The real estate market in the Central Okanagan has heated up.

Year-over-year and month-over-month comparisons report six consecutive months of sales increases on a seasonally adjusted basis.

The Central Zone of the Okanagan Mainline Real Estate Board reported July 2009 sales activity of all MLS property types continued to improve with a total of 468 sales – increasing by 10% from 442 sales in June and up 41% from 332 units sold in July 2008.

Brenda Moshansky, OMREB director, says while single family residential units sold in July increased marginally by 5% from June, sales improved by 59% from this time last year – up from 220 units to 231 in July compared to the 145 single family units sold in July 2008.

“Activity levels continue to improve significantly as we report increased sales for the sixth consecutive month. The Okanagan is still lagging behind the Lower Mainland where July sales are at an all time high. However, we are hopeful that a similar trend could occur with the build up to the fall back-to-school market as we see greater stability and move towards more balanced conditions,” says Moshansky.

She says while there is a drop in employment in the Valley, the downward pressure from the labour market continues to keep house prices from rising and maintain affordability.

“As a result, there is no shortage of entry-level priced homes for first-time buyers. We also are seeing some incredible prices on properties available to purchase for rentals. With the great potential for immediate cash flow, we could see more of these being snapped up as investments.”

Moshansky says if a home is priced well, it will sell.

The Central Zone of OMREB covers an area from Peachland to Lake Country and east along Highway 33 to Westbridge, including the Christian Valley.