June 2011

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This Canada Day long weekend we will be holding an open house in Brocklehurst, Kamloops.

Kamloops Open House 2070 Pala Mesa Pl Brock Sunday, July 3rd, 2011: 1:00-3:00: 2070 Pala Mesa Place, Brocklehurst, $329,900

Tastefully updated solid Brock home in quiet cul-de-sac. 3+1 bedrooms & 2 bathrooms with suite potential recent updates include flooring, appliances, paint, window coverings, baseboards & more.

Click here to view more pictures of this home.

To view all homes for sale in Kamloops click here.

Vancouver, BC – June 30, 2011. The British Columbia Real Estate Association (BCREA) released its 2011 Second Quarter Housing Forecast today.

2011 2nd Quarter Forecast MLS Residential S

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A moderate increase in housing demand is expected this year and next. After declining 12 per cent in 2010, residential unit sales through the Multiple Listing Service® (MLS®) in BC are forecast to rise by 5 per cent to 78,200 units in 2011 and a further 3 per cent to 80,700 units in 2012. However, BC home sales will remain below their 10-year average of 87,600 units both this year and next as expected higher mortgage interest rates in the second half of this year and through 2012 will counterbalance stronger economic fundamentals. Despite lackluster performance during the first quarter, BC employment is expected to increase 1.4 per cent this year and 2.3 per cent next year after posting 1.7 per cent growth in 2010. Recent figures indicate many part-time jobs are being rolled into fulltime employment, signaling increased employer confidence. Real GDP growth is forecast to increase 2.7 per cent this year, after an estimated Olympicsized 3.7 per cent boost in 2010. Improvement in the US economy as well as robust trade with Asia is expected to expand the economy by 3 per cent in 2012. Average home prices in the province have climbed dramatically this year, despite more normalized consumer demand. The upward skewing of average price data is the result of a change in regional demand patterns and a shift in the mix of home types sold rather than as a result of a return to pre-recession market froth. As a result, the average annual BC MLS® residential price is forecast to increase 13 per cent to $571,000 this year, before edging back 2.5 per cent to $557,000 in 2012. However, the price of a typical home in BC is expected to remain relatively unchanged through the balance of this year and through 2012.

New listing activity this spring ebbed alongside a lull in consumer demand, keeping supply conditions in check in most markets. Going forward, Vancouver and the Fraser Valley are expected to trend toward the margin of sellers’ to balanced market conditions over the next 18 months, while the rest of the province exhibits buyers’ to balanced market conditions.


The BC economy lost a little momentum towards the end of 2010, but incoming data suggests that it is still expanding at close to its trend rate of growth.Employment in BC was unexpectedly weak early in the year. Through the first three months of 2011, the economy managed to create only 3,500 jobs, while the provincial unemployment rate increased to an average of 8.4 per cent during the first quarter. Job creation has picked up in recent months, though unemployment remains elevated at 7.6 per cent. Weaker employment along with a spike in energy prices cut into household budgets, precipitating some weakness in retail sales growth. Although we anticipate that consumer spending will strengthen as employment growth resumes, the high level of household debt in BC could be problematic as interest rates rise.


2011 2nd Quarter Forecast BC Household Debt

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BC has always been somewhat of a special case when it comes to household debt and common measures of financial vulnerability have been at high levels for several years without introducing any instability into the provincial economy. Even so, the significant uptick in the provincial debt-to-income ratio, at a time when interest rates are due to rise, does present a risk to economic growth and should necessitate a rebalancing of household finances in coming years. Even with consumers potentially taking a break from spending, other sectors of the economy are growing. The BC manufacturing sector started the year strong with the forestry sector benefiting from Asia Pacific demand. The rebound in manufacturing and trade has greatly benefited from the global economic recovery becoming more entrenched, and the United States finally producing more solid growth in both output and employment. Moreover, the composition of BC exports is undergoing important changes, primarily driven by a greater proportion of BC goods being shipped to China and other high-growth markets.

We would judge risks to our forecast as tilted slightly to the downside. In addition to the potential impact of lighter consumer spending, provincial economic growth may be further muted by the

trade dampening effect of slower than expected growth in the United States and a Canadian dollar trading above parity. However, increased demand from China and relatively high commodity prices should, nevertheless, provide a boost to growth. Overall, we anticipate real GDP growth of 2.7 per cent this year, down from an estimated 3.7 growth rate in 2010. We expect this year’s moderation in growth to be temporary, with growth accelerating to 3 per cent in 2012 as the United States economy continues to strengthen and trade with Asia further develops.


New home construction in 2011 will be supported by an expanding BC economy and an associated uptick in employment. However, continued uncertainty around BC’s Harmonized Sales Tax (HST) as well as tighter mortgage credit will provide an offsetting influence. In addition, elevated inventory levels in some regions of the province will act as a drag on some new building activity this year. We expect that new home construction will remain relatively flat in 2011, albeit rising slightly from 26,769 units in 2010 to 27,000 units this year. Strong demographic trends in BC continue to favour a solid pace of construction activity in the years ahead, with particular strength in the construction of multi-family units as the lower-mainland experiences robust growth in new households. Exuberant pre-recession building has given way to caution in the past two years and, as a result, there is a widening gap between expected household formation and growth in the housing stock. We anticipate that the necessary reversal of this gap will help to push starts higher in 2012 to a level of 28,100 units. Single family housing starts are expected to stay close to long-term average levels, reaching 11,000 units in 2011 and 10,500 units in 2012. A strong trend in multi-family housing is expected to continue, with multi-family starts of 16,000 forecast for 2011 and 17,600 units projected for 2012.


2011 2nd Quarter Mortgage Forecast

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Mortgage rates in the second quarter evolved in-line with our March forecast, with the five-year fixed rate reaching as high as 5.69 per cent and the one-year rate hitting 3.7 per cent. However, global financial markets are increasingly being defined by gyration between a “risk-on” (high demand for risky assets) versus “risk-off” (high demand for risk-free assets) paradigm. Given the current replay of last year’s Greece driven Euro-crisis and disappointing economic data in the United States, markets are currently in a distinctly “risk-off” mode with capital pouring into risk-free assets and driving bond yields in Canada to year-to-date lows. This downward pressure on government bond yields prompted a recent reduction in the five-year fixed yield to 5.39 per cent.

2011 2nd Quarter Forecast Mortgage Chart

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Assuming a reasonable solution to Greece’s debt restructuring and an end to the Federal Reserves’ bondbuying program (“QE2”) in June, interest rates should move gradually higher in the second half of the year. Moderately higher government bond yields will in turn lead

to higher mortgage rates, likely in the realm of 4.2 per cent for a oneyear and 5.8 per cent for a five-year fixed rate mortgage by the end of the year. Given the Bank of Canada’s current outlook for growth and inflation, the target overnight rate should increase gradually beginning in the third quarter of 2011, approaching 3 per cent by the end of 2012. However, the latest flare up over European sovereign debt and a stream of weak United States economic data may send up a caution flag to the Bank of Canada. Indeed, markets are already pricing in a more cautious Bank of Canada. Derivatives that trade off of the Bank’s overnight rate are currently pricing in only 50 basis points of interest rate tightening over the next nine months. We anticipate that the Bank will resume raising interest rates earlier, and in greater magnitude than the market currently expects. That said, it is becoming increasingly likely that the current global economic climate will push rate hikes into the fall rather than the summer as we previously expected. Our forecast is for the Bank to bring its overnight rate from 1 per cent to between 1.5 and 1.75 per cent by the end of 2011 and to 3 per cent by the end of 2012.


2011 2nd Quarter MLS Residential Price

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MLS® residential sales in Kamloops are forecast to edge down 4 per cent to 2,040 units after declining 9 per centin 2010. Improving trade volumes, employment gains and household growth is expected to bolster housing demand in the latter half of this year and through 2012. In addition, some consumers may pull forward their purchases this fall in anticipation of higher mortgage interest rates in 2012. Residential sales in Kamloops are forecast to increase 5.4 per cent to 2,150 units next year. The ten-year average for residential sales is approximately 2,500 units. The inventory of homes for sale have trended higher, with both active listings and new listings added to the market rising over the spring months. While the Kamloops market is exhibiting buyers’ market conditions, consumers have been targeting higher quality homes and as a result, the average sales price is expected to increase t

2011 2nd Quarter Forecast Housing Starts Kamloops

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his year. The average MLS® residential price in Kamloops is forecast to rise 1.4 per cent this year to $308,000, after increasing 1.2 per cent in 2010. Next year, the average MLS® residential price is forecast to remain relatively unchanged, albeit edging down 1 per cent to $305,000. After climbing 53 per cent to 641 units in 2010 on the strength of an 85 per cent increase in multiple construction activity, housing starts are forecast to dip 19 per cent to 520 units this year. A moderate oversupply in the multiple market has developers increasingly cautious of adding to inventories. Housing starts are expected to remain at a more conservative level through 2012, with foundations poured on 450 homes.

2011 2nd Quarter Forecast Kamloops

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This appeared on CTV.ca on June 26, 2011.

Warning about the dangers of unchecked debt on both a global and household scale, Finance Minister Jim Flaherty on Sunday said Europe and the U.S. must do more to restore stability in their own backyards — just as Canadians must tread carefully when taking on long-term debt like mortgages.

“We are cautioning people not to assume too much long-term debt on the assumption that interest rates will stay as low as they are — because they won’t,” Flaherty said Sunday on CTV’s Question Period.

“We want to make sure Canadian households plan ahead and know, if they renew a mortgage in the next several years, it’s likely that the interest rate will be higher,” he added.

“Interest rates have nowhere to go but up.”

Flaherty’s remarks echo those of a Bank of Canada report last week that said high household debt is now the most significant risk to the Canadian economy.

The report came one day after Statistics Canada noted that “rock-bottom” interest rates are luring more Canadians deeper into debt. The ratio of household debt rose to 149.47 per cent in the first quarter of 2011, meaning Canadians owe $1.49 for every after-tax dollar they earn.

Statistics Canada also said Canadian debt ratios are “leaving their U.S. counterparts in the rear-view mirror, despite the repeated exhortations by domestic policymakers to rein in borrowing.”

Flaherty warned that Canada and other countries could be hurt unless more is done to help the ailing economy of Greece.

“We think there is a danger of contagion if there is a failure in Greece,” said Flaherty, noting that its money troubles could spread to banks elsewhere in the EU, leading to a credit crisis similar to that of 2007.

Flaherty said protecting the European and, by extension, world economies would probably require “a substantial package” for Greece from the EU and IMF.

Closer to home the minister added that the runaway debt and deficit in the U.S. is also a “serious concern” that needs to be addressed before the next presidential election in order to restore confidence in the U.S. economy.

Despite the uncertainties in the global economy, Flaherty said the government’s plan to eliminate the federal deficit within three years is still “on track.”

“We do expect some softening in growth the latter part of this year,” he said, “but overall for this year we’re exactly where we should be.”


On Sunday, June 26th, 2011 open houses will be held in Brocklehurst and Westsyde in Kamloops.

Kamloops House 2181 Perryville Pl Westsyde

Sunday, June 26th, 2011: 11:30-12:30: 2181 Perryville Place, Westsyde, $349,900

Immaculate Westsyde home with river views…numerous updates include furnace, hot water tank, central A/C, flooring, kitchen, 2 bathrooms, patio, most windows, external doors, paint, mouldings, more.

Kamloops Home 2070 Pala Mesa Pl Brock

Sunday, June 26th, 2011: 1:00-2:00: 2070 Pala Mesa Place, Brocklehurst, $329,900

Tastefully updated solid Brock home in quiet cul-de-sac. 3+1 bedrooms & 2 bathrooms with suite potential recent updates include flooring, appliances, paint, window coverings, baseboards & more.

Click here to view more pictures of these homes.

To view all homes for sale in Kamloops click here.

MLS Residential Sales BC May 2011
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Vancouver, BC – June 15, 2011. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential unit sales in the province edged down one per cent to 7,857 units in May compared to the same month last year. The average MLS® residential price climbed 20 per cent to $596,872 last month compared to May 2010.

“Tighter mortgage rules, tepid employment growth and advance buying during the first quarter kept BC home sales on a lower note in May,” said Cameron Muir, BCREA Chief Economist. “However, recent downward pressure on mortgage interest rates is expected to provide some incentive to consumers over the summer months.” Year-to-date, BC residential sales dollar volume increased 15 per cent to $20.1 billion, compared to the same period last year. Residential unit sales edged back one per cent to 34,191 units, while the average MLS® residential price rose 16.5 per cent to $588,857 over the same period.

Click on the charts below to enlarge

May 2011 Residential Avg Price & Sales to active listing

May 2011 BC Residential MLS Data by boardMay 2011 YTD BC Residential MLS Data by Board


This article was written by Jeremy Deutsch of Kamloops This Week on June 14th, 2011.

Tobiano Golf Resort Kamloops BCAs the future of Tobiano Resort is sorted out after falling into receivership last week, a picture of what it was like behind the scenes at the resort is emerging.

Dave Behnsen was the guest-services manager at Tobiano until recently and recalled how staff cuts last season hurt employee morale at the golf course. He said the “bare bones” staff levels led to him working 55 hours a week without any thanks from Michael Grenier, the  head of the Tobiano development. “Not once did Mike come to me and say I really appreciate the extra effort,” Behnsen told KTW.

He believes a change in ownership will be well-received by employees and ultimately be good for the future of the resort. “I think it’s a great thing and the future of Tobiano is bright,” Behnsen said, adding the golf course is too good not to succeed.

Word of the resort’s financial woes broke on Monday, June 13, after the real-estate side of the resort and golf course were ordered into receivership by the B.C. Supreme Court on June 9.

Pagebrook Inc. and Kamlands Holdings Ltd., which are both companies owned by Grenier, owe the Bank of Montreal debts totaling roughly $26 million.

The Bowra Group, which also took control of the troubled Mission Hill development in Kamloops last year, has been appointed receiver of Tobiano.

Grenier wouldn’t speculate on his future with the resort, but told KTW he was proud of what the development has accomplished — especially the golf course — in the three years since it opened. “I think it’s the finest resort project in Western Canada,” he said, specifically noting the hard work done by employees at the development.

Though the golf course has received several accolades in its short history, Grenier couldn’t make a go of the resort.

The developer blames two factors for Tobiano’s financial situation: The global economic downturn and the resort’s failure to secure funding for its planned marina.

The banks passed on financing the marina, while a pair of applications to the federal and provincial governments for grant funding was rejected. “They did not allow us to advance the marina, which would have been the next logical step in this successful project,” Grenier said.

Despite the financial turmoil, it’s expected to be business as usual for the golf course and residents living at Tobiano. Douglas Chivers, a representative with the Bowra Group, said the company intends to continue to operate the resort and golf course. “It’s in no way shut down,” he said.

Though Chivers couldn’t give specific details on the future of Tobiano, noting the process is still in its early stages, he said the receiver could sell the resort to a new owner as a whole or sell individual lots. “There’s a lot of options and possibilities,” he said.

Chivers noted it’s the court-ordered receiver’s role to take possession of the assets in an effort to operate, assess and recover those assets to repay creditors. He also pointed out the resort isn’t technically in bankruptcy, noting the court appointment was facilitated by the application of its secured creditors.

Bankruptcy involves a different set of laws.

As the court-appointed receiver works out the resort’s financial troubles, the local tourism industry is pulling for the golf course to succeed.

Tourism Kamloops CEO Lee Morris was surprised to learn the resort was in financial trouble, but is pleased to hear the golf course will remain open. She said Tobiano is very important to the overall golf product in Kamloops, noting the resort has been a factor in getting consumers to come to the area. “I think it really helped take us to the next level as a golf destination,” she said.


Kamloops BC Real Estate 1119 Surrey North Cute as a button – this North Kamloops 2 bedroom bungalow has had numerous upgrades over the past few years. In 2008 – new roof, hot water tank, furnace, central A/C. Upgraded windows & plumbing has been re-done. Large covered patio in the private backyard that has beautiful gardens & a plum tree. Wired workshop, alley access, garden shed, RV parking, single car carport & room for more vehicles. Shop potential in the back. Fully fenced yard. All appliances (fridge, stove, washer, dryer & upright freezer) & window coverings included.

Click here to view more pictures of this home.

To view all homes for sale in Kamloops click here.

Open houses will be held this Saturday, June 11th and Sunday, June 12th, 2011 in Barnhartvale, Brocklehurst and Dallas in Kamloops.

Kamloops Open House 16-5200 Dallas Dr Kamloops Real EstateSaturday, June 11th, 2011: 2:00 – 4:00: 16-5200 Dallas Drive, Dallas, $314,900

Newer Dallas home with 4 bedrooms, a main floor den & 3 bathrooms. Many upgrades to this home including new flooring, fresh paint throughout. Maple kitchen cabinets with tile backsplash. more

2070 Pala Mesa Pl Brock Kamloops Property For SaleSunday, June 12th, 2011: 1:00-3:00: 2070 Pala Mesa Place, Brocklehurst, $329,900

Tastefully updated solid Brock home in quiet cul-de-sac. 3+1 bedrooms & 2 bathrooms with suite potential recent updates include flooring, appliances, paint, window coverings, baseboards & more.

4744 Uplands Drive Barnhartvale Real EstateSunday, June 12th, 2011: 2:00-3:30: 4744 Uplands Drive, Barnhartvale $388,800

Beautiful 180 degree views from many of the rooms of this 4 year old home. Spacious floor plan with 4 bedroom plus a den with 3 full 4 piece bathrooms. Located in cul-de-sac in a quiet area of Barnhartvale. more.

Click here to view more pictures of these homes.

To view all homes for sale in Kamloops click here.

The Kamloops and District Real Estate Association has released the statistics for May 2011. Click on the image to enlarge.

Comparative analysis property type May 2011

Kamloops Real Estate Comparative Analysis by Property Type May 2011

MLS Activity May 2011 Kamloops Real Estate Statistics

Kamloops Real Estate MLS Activity May 2011

Sales by subarea May 2011 Kamloops Real Estate Statistics

Kamloops Real Estate Sales by subarea May 2011

This article appeared on CBC News on May 17th, 2011 and was written by Sunny Freeman.

Kamloops Home For Sale Climbing home prices and tighter mortgage rules are closing doors to the real estate market for some new homebuyers, contributing to a near 15 per cent year-over-year decline last month in Canadian home sales.

The national average home price rose by eight per cent in April even as housing sales fell by 14.7 per cent from the year before, according to data released Tuesday by the Canadian Real Estate Association.

“Changes to mortgage regulations that took effect in April 2011 likely sidelined a number of first-time homebuyers,” said Gregory Klump, CREA’s chief economist.

Those changes, which actually took effect midway through March, cut the longest possible amortization period to 30 years from 35 years, an effort to curb high-risk borrowing. However, it also forced some potential buyers out of the market who couldn’t afford the higher monthly payments for the shorter period.

The new rules had already left a mark on existing home sales during the previous quarter as home sales surged to their highest level in a year as buyers rushed in to beat the tougher restrictions, said Leslie Preston, an economic analyst at TD Economics.

“We don’t expect the first quarter’s pace to be sustained (through the rest of the year) and April’s reading sets the stage for an expected softening,” she said.

Meanwhile, similar government moves last spring that made it harder to qualify for a mortgage, and that gave sales a boost last April that amplified the year-over-year decline even further.

“Last April, several transitory factors artificially boosted sales. This included the impending tightening of mortgage rules, speculation about higher interest rates and the looming introduction of the HST in some provinces,” said Klump.

He said that additional measures to tighten mortgage rules and other factors made it difficult to compare the latest results to a year earlier and reliably gauge the impact of the mortgage rule changes.

Further adding to pressure on buyers, the national average home prices rose by eight per cent to $372,544 compared to last April — the third consecutive month in which the national average price rose by eight per cent from year ago levels.

A boom in sales of multi-million dollar properties, largely in the Greater Vancouver area, has been skewing the average home price upward in recent months. Average home prices in British Columbia were up 16 per cent, double the national average — sending the country-wide average higher.

“Higher end home sales in Greater Vancouver and Toronto had their best April ever,” Klump said.

In Vancouver, average home prices were $879,039 last month. In Toronto, they were up to $477,407. Excluding Toronto and Vancouver, seasonally-adjusted prices dipped 0.5 per cent to $367,600, said BMO Capital Markets economist Robert Kavcic.

While demand for high-end properties fell in April compared to March, so did sales of lower-priced properties, helping to keep average home prices high.

The number of newly listed homes edged up 1.3 per cent in April from March, but remained well below levels in January and February, when the coming mortgage rule changes were announced.

“New listings are down a hefty 15 per cent year-over-year, one big reason why prices remain lofty despite moderating sales activity. This is especially true in pricier markets like Toronto (-29.9 per cent year-over-year) and Vancouver (-23.4 per cent year-over-year),” Kavcic said.

The total number of homes sold on CREA’s Multiple Listing Service in April fell to 16,525 from 17,937 a year ago. On a seasonally adjusted basis, sales were down 4.4. per cent from March of this year.

Declines were largest in some of Canada’s most expensive and active markets, including Toronto, Vancouver and British Columbia’s Fraser Valley. Still, sales activity in April was up from last year in a number of local markets, the association said.

Year-over-year comparisons should become less pronounced in the coming months, as last year sales dipped 17 per cent in May and June, Kavcic said.

“Canada’s housing market appears well balanced overall, with the ratio of sales to new listings bang on its long-run average, though some local markets are clearly hotter than others,” he said.

“Higher mortgage rates and now stricter mortgage rules should keep sales and prices well behaved in the year ahead.”

CREA said that the increases in newly-listed homes combined with fewer sales in April helped push more than two-thirds of local markets considered balanced.

The national sales-to-new listings ratio, a measure of market balance, stood at 52.5 per cent in April, down from 55.7 in March.

The number of months it would take to sell all of the listings on the MLS, another measure of supply and demand, was up to six months in April, up from 5.7 months in March.

Housing starts — another key indicator of demand for homes — were slower than expected in April, largely due to a decline in construction on multi-unit buildings such as apartments and condos. That was much weaker than economists had been expecting, as construction activity usually picks up in the spring.

A drop in housing starts and sales of previously occupied homes had been widely anticipated. However, the expected drop in home sales across Canada this year will be less than previously forecast because of stronger sales of mega-homes in British Columbia in the first quarter, the Canadian Real Estate Association said earlier this month.

CREA now expects that unit sales for 2011 will dip 1.3 per cent to 441,100, less than the 1.6 per cent decline it forecast in February.

National sales activity of homes sold on CREA’s Multiple Listing Services should rebound by 2.6 per cent to 452,000 units in 2012, it added. That’s in line with the previous forecast and the 10-year average for annual activity.

The national average home price is forecast to rise four per cent in 2011 to $352,500 and by 0.9 per cent to $355,800 in 2012. If that prediction is to hold true, prices will have to fall nearly six per cent in coming months from the $372,544 average price reported in April.