After beginning the year with low’s, buyer confidence in the South Okanagan Real Estate market quickly returned.  Penticton real estate continued to gain momentum monthly until December when we hit near record territory. More homes were sold last  month than in any December since 1989.

Average home prices started the year at $334,222.  As the months went by, the average home price increased to $407,361.  December 2008 showed the average sales price was $388,727.

Regarding the recession and the Okanagan, there have been some dissappointments in the local and global economies. When it comes to real estate, the immediate issue tends to be local in nature! We all need homes. Housing here is more affordable to buy than rent. Also, with low vacancy rates, rental properties are another favorable investment until retirement. Where else would you want to retire? I have quite a few more years ahead of me, and either way, I want and will be in the Beautiful Okanagan valley enjoying the sunshine, mountains and beautiful beachfront homes.

2009 had a roaring yearend for myself and other busy agents in the office. Prices correcting, interest rates, high rental rates  and first time buyers fueled the market when things were getting a bit stale.  An inactive start to the market showed the largest number of listings we had seen in years.  Large inventory resulted in competitive pricing and an unforseen buyers market.  The large inventory levels drove prices down while offering a good selection. A lot of first time homebuyers  find it less expensive to buy than it was to continue renting, so lower priced homes started to sell again first.

 A good credit score,  secure job and bit of cash or parental co-signer  you have a great chance at qualifying for what your pay in rent. Also entered the market place where the “new first time homebuyer.” The parent that helps the newly weds would rather the college student/entrepreneur pays the parents’ mortgage over than anyone else!

Late spring  prices had officially corrected enough and the market stabilized. Then, near suummer’s end, there was a little upward pressure – single family homes in the $300,000 to $450,000 price range. if  priced right, nicer homes sold very quickly.  Listings that appeared to be overpriced failed to sell.

The Canadian Mortgage and Housing Corporation (CMHC) is considering some changes to their program of insuring mortgages. This could affect first time homer buyers or those without a 25% downpayment. Certainly the impact of new Harmony Sales Tax  HST remains an unknown.

Spring is always the strongest part of the real estate market here in the Okanagan. If you are thinking of a move this year call me!

Real estate aside, I hope you all have a happy and healthy 2010. If there is anything I can do to help you don’t hesitate to call.

Dori Munday.

27 Years of Continuous Success!

Royal LePage Boasts 50%  Year after Year.

When considering a purchase on a home that is currently in foreclosure there are some points that are important to understand.

As a purchaser you can make an offer on a foreclosed property and have the bank accept it subject to financing, inspection, insurance, home inspection and any other pertinent clauses. Once all the conditions have been met a court date is triggered. The accepted offer price is now public knowledge and anyone willing to pay more for the property has the opportunity to present their unconditional offer along with deposit to the court. This means that they must either be an all cash buyer or have all the financing 100% approved and ready to be released. At the court competing bids are common.

If you are interested in a property where a court date has already been triggered you must consider that an offer submitted to the court has to be unconditional, if you would like a home inspection you must have it done prior to presenting the offer. Same with financing the source of your funds must be cash or have your mortgage specialist have the property and you 100% approved. This is not a pre-approval this means that your broker has submitted the property, schedule A to the lender and has given you the clear ok to present an offer in court with a deposit of more than $10,000 already in trust with your realtor. Your broker needs to know that you are looking at going to court with your offer and financing. Your deposit can be compromised if this is not taken very seriously.

In competing bid situations, the principal objective of the Court is to protect the interests of the owner of the property being sold. The Court has few, if any, concerns about competing bidders, lawyers, realtors and others. The Court attempts to ensure that the best (normally: highest) offer is approved. That is done by allowing all competing bidders (including the bidder whose offer is already before the Court) to submit one final sealed bid. The Court opens and reviews all the bids together and approves the best one. Once the bids are opened by the Court they cannot be changed in any way; the auction process is completely final.

The Court will not approve any offer with a “subject” (a purchaser’s condition precedent). The only acceptable (and mandatory) “subject” is a vendor’s condition precedent that the offer is subject to Court approval.

The Court will not approve any offer without a significant and real deposit (i.e. – a minimum of $10,000, either already deposited in a realtor’s or lawyer’s trust account, or a bank draft or certified cheque attached to the offer).

The Court will not approve any offer without the full and proper legal name(s) of the purchaser(s) (exactly as such name(s) will appear will appear in title if that offer is successful bid). So an offer with the words “or nominee” or anything similar would not be approved. Once an offer is approved, the name(s) cannot be changed in any way.

Current Foreclosures   

$85,000 waterfront foreclosure

All offers presented to the Court must have a schedule “A” attached and signed by the offeror(s). Offers without this Schedule will not be acceptable to our client (and therefore also not acceptable to the Court, because our client is the vendor).