Kelowna Real Estate Update February 2011

I am sure that, as many of you have been reading my updates over the last 12 months, you could be forgiven for wondering when I am going to have something more positive to say about the state of the Kelowna Real Estate market!
Well....... that time may have finally come!

Central Okanagan Real Estate Stats for January 2011

Type         Total     S Fam   Strata   Lot    Manuf

Jan 11*       191          111       62        8        10

Dec 10        157            93       46      10          8

Nov 10       199          117        68       7          7

Oct 10        246          149        74     10        13

Sep 10        219          132        72       5        10

Jan 10         232          136        74     13          9

*Taken from MLS as at close of business 31st Jan 2011, may be subject to minor change.

Whilst the month end sales figures are up 21.6 % against December 2010 (which is to be expected, but not exceptional), the more positive news is the big increase in people looking at properties on the web, there are more property enquires by phone, and Agents are reporting more showings on properties.

I know that this activity does not necessarily mean people will ‘buy’, but the market has to start somewhere, and this is often the way it starts!

So what properties will make good investments?

For those of you who are looking to invest in property in Kelowna, and plan to rent them out, my advice is to buy the types of property which reflect the ‘Okanagan Lifestyle’ E.G. properties by the Lake or close to recreation, such as Golf Courses.

Looking around the market at the moment, there are some good buys in condo complexes such as Discovery Bay (down town Kelowna Lakefront) and Pinnacle Pointe (Quail Ridge Golf Course). Prices now are back where they were 4 or 5 years ago.

During the busier periods in the market, these types of properties were very popular, due to their location, amenities and also because they allow short term rentals, which offer the opportunities of higher levels of rental income in the summer months.

At the moment, rentals rates are quite depressed; however they will rise again, and make this type of investment look quite attractive.

Remember, downtown lake shore is limited, and we are seeing great expansion at UBC Okanagan and Kelowna International Airport. There is bound to be a’ knock on’ in demand in Quail Ridge, as it is the only area where students can walk from, to the University (weather permitting) .

For those looking to buy homes – ‘estate sales’ are often very reasonably priced, and foreclosures can be good value, but you have to be prepared to attend Court on the Hearing Date, and if there is a competing bid, you may lose the deal.

And Finally ...

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As always, if you have any questions regarding the issues raised in my Newsletter, please feel free to contact me, and if you know anyone who might be interested in reading this article, please pass it on!

Kind regards

Trish Cenci

Telephone 250 864 1707