Kamloops Real Estate Information

Understanding Market Conditions

January 23, 2009 Kirsten Mason Information For Buyers, Information For Sellers, Real Estate Information

Numerous factors affect the real estate market. There may be more buyers than sellers. There could be more sellers than buyers. Interest rates, employment statistics and pricing. The supply of resale and new homes are also considerations when selling a home. Generally speaking, there are three types of markets that affect the sale of your home. Understanding each of these can make a difference to your bottom line.

Buyers’ Market
Description: There is an abundance of homes on the market. Supply exceeds demand.
Characteristics: Many homes available for sale. Fewer buyers than homes. Homes remain on the market longer. Stable prices. Prices may also drop.
Impact: Less panic in buying. Buyers shop longer for homes. Upon negotiation, they often have more leverage.

Sellers’ Market
Description: There are more buyers than homes available.
Characteristics: Few homes on the market. Many buyers. Homes are sold quickly. Prices often rise.
Impact: Home prices are higher. Homes prices often rise. Buyers purchase quickly, and tend not to shop as much. Multiple offers are common. Sellers may prefer offers with no-conditions.

Balanced Market
Description: There are roughly the same amount of buyers, sellers and number of homes on the market. Supply equals demand.
Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable.
Implications: There is less tension among buyers and sellers. There is a reasonable number of homes to choose from.

We have seen exponential growth in the Kamloops real estate market over the past five plus years. Often buyers would have little time to place an offer to purchase a property because of the sense of urgency in the market. Multiple offers was commonplace at that time. This fortunately for buyers has changed recently with the economic downturn. Buyers have time on their side and an abundance of homes to chose from. Today in the Kamloops real estate market we are seeing a strong buyers market. It will not be a buyers market forever, but it is expected that it will be this way for a while. Eventually, the market will cycle into a balanced market, which we have not seen in quite a number of years.

2008 / 2009 Annual Kamloops Real Estate Market Report

January 7, 2009 Kirsten Mason Information For Buyers, Information For Sellers, Real Estate Information

There is a lot of confusion about the state of the Kamloops, B.C. and National real estate market. Buyers and sellers are trying to figure out when the right time is to make a move. Below I have included my 2008/2009 real estate market report. Click the link for the pdf version and also for those who cannot open the pdf there are images of the document.

2008/2009 Annual Kamloops Real Estate Market Report

Kamloops Annual Real Estate Market Report Page 1

Kamloops Annual Real Estate Market Report Page 2

Kamloops Annual Real Estate Market Report Page 3

What the Analysts say about B.C. Real Estate for 2009

January 6, 2009 Kirsten Mason B.C. Real Estate News, Information For Buyers, Information For Sellers, National Real Estate News, Real Estate Information

In Kamloops, I continually talk to clients regarding the local real estate market and the factors contributing to the recent downturn. There are many predictions and opinions about the market. Below I have compiled a series of analyst opinions on the BC and national real estate market which in turn directly apply to Kamloops real estate. Hopefully you will find this information useful to your search, whether you are a home buyer, seller or just looking for some clarification.

Scotiabank’s senior economist Adrienne Warren says Canadian real estate prices will drop 10-15% nationally, with B.C., Alberta and Saskatchewan taking the brunt of the downturn. They predict that much of the runup in prices seen this decade will remain intact.

Canadian Association of Accredited Mortgage Professionals (CAAMP) report states that despite the traumatic American mortgage fall out, Canada has managed to steer clear of deflated markets. The Canadian system is supported by low and steady interest rates, better underwriting processes, different products and normal re-sale activity levels. “Canada is a financially conservative country where consumers are able to meet the terms of their mortgages and buying decisions are based on affordability,” said Dunning. “This contributes to a solid real estate market that will not experience the same drop off we see south of the border.”

Cameron Muir of BCREA believes BC could see an upswing in housing markets as early as spring 2009. This doesn’t necessarily mean that housing prices will increase. Consumer confidence in the market is predicted to stabilize and buyers will become more active in the market place.

CMHC see a further drop of up to 9% in 2009. Home prices in Kamloops and district have fallen so far anywhere from 10% and above to date.

Ozzie Jurock sees increased activity in Spring and sales lower in 2009 and calls for us to start thinking positively.

Other points of interest:

Across the country, downward movement of house prices are only 3% year-over-year in the third quarter (compared with a 5 to 15% decline in the U.S.)
International studies conducted by agencies such as the International Monetary Fund have found that Canada is still considered to be one of the countries where the housing market is least overvalued
Canada’s housing market is also much less vulnerable given the very limited sub-prime mortgage activity (5% of outstanding mortgages compared to approximately 14% in the U.S.)
The speculative sector is relatively small
Housing affordability – which had deteriorated over the past two years – will improve with the recent significant rate cuts by the Bank of Canada and softer house prices.

They all agree that consumer confidence is one of the real estate market’s biggest challenge. There is a lot of uncertainty locally in Kamloops and in the world as a whole. Predictions are never certainties. There are a number of factors that affect consumer confidence and unfortunately this confidence is not only a local and national feeling but also a world wide concern.