A fresh start for Kelowna real estate

Here we are at the beginning of 2010. What will kelowna real estate look like this year? Continued low interest rates, sale prices up, and inventory at a sustainable level could spell a very healthy and balanced real estate market.
I'm hearing from my fellow realtors that there are more and more buyers coming in again from other areas... particularly the lower mainland and Alberta. Also, the number of investors has remained steady, encouraged by low vacancy rates and better prices. First time buyers, who came back to the table in 2009, will continue to enter the market with the possibility of interest rates going up this year. Move up buyers are also busy upgrading their homes. The Olympics will shine a spotlight on our region as well. All in all... Kelowna is an amazing place to live and it's real estate should continue to thrive and prosper in the coming months.
Talk to you soon...
Paige

A huge thank you to Susan Tough

I have the greatest job in the world and am so lucky to have GREAT people to work with. The managing broker for Coldwell Banker Horizon Realty, Susan Tough , went above and beyond the call of duty today. I've been dealing with a very finicky purchase... and the problems were multiplying fast and furious. At this very delicate time, I'm getting on a plane and feeling sick about not being able to finish this situation. My clients trust me and were very gracious about me leaving, but I know it must have added to their level of stress. Susan stepped in and on top of a huge job load of her own, grabbed the reins and made everyone including me, very comfortable that she would be able to get the job done. Thank you so much Susan... you can't imagine how much you are appreciated.
Talk to you soon....
Paige

How much tax is too much for Kelowna real estate?

How will the HST affect Kelowna real estate? Information has been trickling in slowly but surely. I think everyone was pretty sure that new housing would not be taxed at 12%... but how much then, and what are the rules and rebates.
When considering real estate and housing, the government must realize that it’s very important to everyone that affordable housing is attainable. HST will be paid out when purchasing a NEW home after July 1, 2010. With the new threshold of $525,000 it would appear that there will be no new additional tax (5% GST will still apply) and that homes over $525,000 will, after rebates, be charged an additional 2%. This move will add even more tax on the heavily taxed process of buying a home.
Consider the example of purchasing a new home for $525,000. There is the property transfer tax currently being paid on every real estate transaction in BC whether the home is new or not. This amounts to 1% up to $200,000 of purchase price and 2% on the balance, or $8,500 for our example home. GST at 5% if the home is new. There’s another $26,250. Currently we pay 5% GST on services like lawyers and real estate agent's. Another $534 for the taxman. Then of course, there’s annual property tax where on the $525,000 home you’d be paying around $2,800. Let’s assume you’re living here and qualify for the homeowners grant of $570 which then makes your annual tax $2,230.
Real estate in Kelowna is a valuable commodity and people realize that. We’ve been lucky to have weathered this last downturn fairly well with moderate price adjustments that have re-ignited people’s ambition of owning property here. However, how much more of a tax burden can we take when you consider that our example of buying “modest and average” home in Kelowna is going to cost an additional $37,514.00!
Do you think we pay too much tax on our housing?

Talk to you soon...
Paige

Is lakeshore real estate on an upward trend?

In the last 3 weeks I've had 5 calls from clients inquiring about purchasing lakeshore property. For the most part they're feeling that waterfront is a limited commodity (agreed) and that prices will come back and start rising (agreed) and that Kelowna has only just begun to see it's international reputation grow (agreed again)! While not disputing that real estate in Kelowna is expensive, when you compare waterfront prices to other parts of the world it makes it seem downright affordable! If you take a $4 million dollar lakefront home in Kelowna and move it to Vancouver, you'd pay over $14 million and in Victoria the same home would fetch almosts $7.5 million. Coldwell Banker article about Canadian affordability
Now that's not to say that all lakefront property in Kelowna is that expensive. For just over $1.1 million you can own waterfront on Okanagan Lake... the house is a "fixer upper". Prices wander up from there to a staggering $10,000,000 for home and waterfront lot.
Consider this as well... in 2006 there were 90 lakefront sales, 2007 saw 112. In 2008 we saw sales dip to 58 and 2009 YTD we're at 54. Food for thought?
Talk to you soon...
Paige

How long does it take to buy a house?

I'm working with some sellers right now who have been great! They keep their house spotless, try their best to accomodate all showings and to top it off, are listed at a great price.
Recently a buyer looked at this house one day, wrote an offer the second, countered on the third, countered on the fourth, and are still thinking about it on the fifth!
It's so interesting to see different negotiating tactics in the world of real estate. Some people are stoically firm, sweet and accommodating, indifferent, and sometimes even panicked. In my experience, the folks that take days to come to decisions, are the least successful and the reasons involve pure psychology.
Excitement level diminishes considerably which opens the door for indifference, stress, and sometimes even hostility between buyer and seller. Sellers want to feel good about someone moving into "their house" and creating good memories. Buyers of course, want to feel like they're getting the best price possible.
How do you think you'd act in the sellers or buyers shoes?
I'll keep you posted to how this negotiation goes.
Talk to you soon.
Paige