Above Average December for Kamloops and District Home Sales, KADREA

This article appeared on CREA (Canadian Real Estate Association) and KADREA’s (Kamloops District Real Estate Association) site January 5th, 2015.

The number of homes sold through the MLS® System of the Kamloops and District Real Estate Association came in slightly below levels from a year earlier in December 2014.

According to the Association’s statistics home sales totaled 123 units in December 2014, down just 2.4 per cent (three sales) from December 2013.

“December’s sales figure came in slightly below the same month in 2013, but looking back over a bit more history it came above both the five and 10-year averages for the month,” said Ingrid Pfeiffer, President of the Kamloops and District Real Estate Association. “A total of 2,260 homes traded hands in 2014, slightly above but broadly in line with the average of the last five years. The average price of all those home sales was just over $318,000, up almost two per cent from 2013.”

The average price of homes sold in December 2014 was $319,234, up 2.1 per cent from the same month in 2013. The annual average price for 2014 was $318,241, an increase of 1.9 per cent from 2013.

The dollar value of all home sales in December 2014 was $39.3 million, a decline of less than half of one per cent on a year-over-year basis.

There were 195 new listings on the Association’s MLS® System in December 2014, up 29.1 per cent on a year-over-year basis. This mostly reflected a drop in new supply in December last year.

Active residential listings on the Association’s MLS® System numbered 1,569 units at the end of December, up seven per cent from a year earlier.

There were 12.8 months of inventory at the end of December 2014, up from 11.6 months a year earlier and on par with the long-run average for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Sales of all property types numbered 144 units in December, an increase of 8.3 per cent from December 2013. The total value of all properties sold was $42.7 million, up 1.9 per cent from December 2013.

Click images below to enlarge

Residential Active Listings Kamloops & District - December Only

Residential Active Listings Kamloops & District – December Only

Residential Average Price Kamloops & District

Residential Average Price Kamloops & District

Residential Months of Inventory Kamloops & District - December Only

Residential Months of Inventory Kamloops & District – December Only

Residential New Listings Kamloops & District - December Only

Residential New Listings Kamloops & District – December Only

Residential Sales Activity Kamloops & District - December Only

Residential Sales Activity Kamloops & District – December Only

Link to article

Get Ready for Interest Rate Shock in 2015, CBC News

Get Ready for Interest Rate Shock in 2015, Consumers with high levels of debt to be most affected when Fed, Bank of Canada raise rates. This article appeared on CBC.ca website January 5th, 2015.

2015 is expected to be the first time in five years that benchmark interest rates are moved upwards, increasing the cost of borrowing. The U.S. Federal Reserve will go first; the Bank of Canada is expected to follow.

Most analysts expect the Fed to increase its key rate, which has been near zero for six years, by a quarter of a percentage point in the spring. Then, unless there is an unexpected shock to the U.S. economy, it will likely boost it gradually throughout the year, though the top rate is still expected to be a modest 1.25 to 1.50 per cent by the end of the year.

Canada will almost certainly follow, though with a time lag, depending on the state of the economy here.

Whenever it happens will be a shock to people carrying consumer debt, says Lynnette Purda, an associate professor at the Queen’s School of Business.

The interest rates on consumer loans, lines of credit, variable rate mortgages and some auto loans could rise immediately. For Canadians carrying consumer debt that will mean higher payments.

“Despite the low interest rates we’ve had for years, no one seems to have worked away at their debt levels. It will be a wake-up call for many consumers,” Purda told CBC News.

Consumers could pull back

Purda expects Canadians will pull back on big ticket purchases, like cars, appliances and furniture as interest rates rise.

And the biggest ticket purchase of all, housing, will not be unscathed. Overheated markets will finally cool and we may finally see the “soft landing” long predicted by the Bank of Canada and economists.

The timing of the interest rate increase – which has been predicted in past years without materializing – is no sure thing.

Although the U.S. Fed at its last rate announcement indicated it was most likely to move in the second quarter of 2015, much depends on economic indicators. Low oil prices have given a boost to the U.S. economy and left more money in people’s pockets, so there is a possibility the Fed could move even sooner.

TD Bank is predicting the Bank of Canada won’t move at the same time as the U.S. even though Canadian rates usually track what is happening in the U.S.

According to TD economist Leslie Preston, the rise may not happen here until the third quarter.

“We expect Canada to raise interest rates in October of 2015 – we expect two [quarter of a percentage] point interest rate hikes in the fourth quarter of 2015, so by the end of 2015, the overnight rate would be at 1.5 per cent – it’s currently at one per cent,” she told CBC News.

The challenge for Stephen Poloz

For Bank of Canada governor Stephen Poloz, this will be the first time he’s wielded one of the key tools in a central banker’s arsenal – the overnight interest rate which is the rate the central bank uses to lend to financial institutions.

And he’ll have to weigh inflation that currently seems quite high against the potential economic impact of higher rates.

The labour market is not yet operating near capacity, with many people still unemployed or underemployed, Preston said. And falling oil prices may slow capital spending and hiring, both in the oil patch and in sectors that supply it, such as equipment manufacturing.

“One of the challenges that emerged most recently are lower oil prices. Canada is a net oil exporter so when prices go down, it affects growth in Canada. This is a new headwind that’s come up,” Preston said.

While those factors may slow the Bank of Canada’s decision to raise rates, bond yields could rise in anticipation of a rate hike and that would affect fixed mortgage rates, according to RBC chief economist Craig Wright.

Wright said the rise in bond yields could catch people by surprise, as it may precede the Fed’s move on rates. Those who are looking to renew a mortgage in 2015 should watch what the banks do with their fixed mortgage rates, he said.

Renewing a mortgage? Lock in early

“What you tend to see is people anticipate a rise in mortgage rates and lock in,” he said, adding that only about 20 per cent of mortgage holders renew each year, so relatively few people will be affected.

Wright warns that people with credit card debt, auto loans and lines of credits are “vulnerable” to a rate hike, especially if they have high levels of debt.

But he is upbeat about prospects for the Canadian economy, saying it is likely to continue improving, with new jobs emerging in the manufacturing sector because of the lower dollar and growing exports. People who are employed are less likely to get in trouble amid rising rates, he says.

He believes Canadian companies will shrug off an interest rate hike and keep investing.

“Companies have a lot of cash to work with. As the economy improves we will be looking for them to build their businesses,” Wright said.

Wright sees the Canadian dollar headed lower next year, possibly below 84 cents US. That makes Canadian exports more competitive.

Upside of higher rates

“Higher rates have an important upside. If they are low for too long, we see bubbles appearing,” Wright said.

He points to the housing market as an example with certain markets overheated because rates are low. Higher rates should help correct any bubble in housing markets, he said.

An interest rate hike could also temper inflation, which is pushing the Bank of Canada’s two per cent target despite lower oil prices.

Preston also sees an upside for savers who want a safe haven for their money.

‘”The other side of higher interest rates is it would make life a little easier for a lot of pension funds or savers – the saving side of the economy has been struggling to get returns in a low-interest rate environment,” she said.

Link to article

New Listing: 762 Dominion Street, South Kamloops, BC $399,900

New Listing: 762 Dominion Street, South Kamloops, Kamloops, BC $416,000New Listing: 762 Dominion Street, South Kamloops, BC $399,900. Centrally located downtown character home provides the perfect balance between modern and heritage charm.

This functional and well laid out five bedroom, two bathroom home with self-contained two bedroom in law suite has been completely updated from top to bottom with hot water tank, furnace, central air, roof, front fencing, deck, walkway, stairs, electrical, exterior doors, kitchen cabinets and appliances, flooring, paint, trim, main bathroom, laundry room and some windows.

The main floor features a bright living area off the entry with original stained glass windows and light fixture, spacious kitchen with a cozy dining nook, two generous sized bedrooms and four piece main bath.

The second level features an oversized loft area that can easily be utilized as the third bedroom, office or casual living space..the options are endless.  The second bedroom in-law suite with separate entrance is tastefully appointed and offers a shared laundry space. Hook ups are available on the main floor for a washer and dryer.

The fully fenced yard has been beautifully landscaped and provides a serene park like setting that is adorned by mature fruit trees and ample space to cultivate your vegetable garden.

Parking is a breeze with lane access to the back of the property and two storage sheds for all your outdoor furniture.  Desirable neighbourhood is just steps to schools, hospital, shopping, transportation, and amenities.

The work here has been done for you… Upstairs is easy to show and downstairs requires 24hr notice for all showings.  Call to book your viewing today!

Click here to view pictures of this home

To view all homes for sale in Kamloops click here.

CREA Updates Resale Housing Forecast, 2014 & 2015

Ottawa, ON, December 15, 2014 – The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations for 2014 and 2015.

With mortgage rates remaining at historic lows since the summer, activity has remained stronger for longer than previously expected and has yet to show clear signs of fading.

As a result, the forecast for annual sales in 2014 and 2015 has been upwardly revised. Almost all of the upward revision to national activity in both years stems from the current strength and momentum of sales across most of British Columbia and much of Ontario, particularly in the Greater Golden Horseshoe region.

In British Columbia, historically low mortgage interest rates have helped fuel a broadly based increase in the number of homes changing hands this year, although activity has only recently risen above its 10-year average. In Ontario, strong demand has been met with a rise in listings, which in recent years had been in shorter supply. The recent momentum for sales in both cases has endured for longer than expected and has shown few signs of diminishing. These two provinces together account for more than half of national activity and are responsible for much of the upward revision to projected and forecast national sales.

Sales are now projected to reach 481,300 units in 2014, representing an annual increase of 5.1 per cent. While this places annual activity eight per cent below the record set in 2007, it marks the strongest annual sales since then.

It also places activity in 2014 slightly above, but still broadly in line with its 10-year average. Despite periods of monthly volatility since the recession of 2008-09, annual sales have held steady within a narrow range around its 10-year average. This stability contrasts sharply with the rapid growth in sales seen in the early 2000s prior to the recession.

British Columbia is projected to post the largest annual increase in activity (14.5 per cent) followed closely by Alberta (9.3 per cent). Demand in both of these provinces is currently running at multi-year highs. Annual activity in Ontario is also expected to come in 3.6 per cent above 2013 levels.

Sales in Saskatchewan (+1.8 per cent), Manitoba (+0.8 per cent), Quebec (-0.1 per cent), New Brunswick (-0.8 per cent), and Prince Edward Island (no change) are expected to hold near 2013 levels. Activity in Nova Scotia and in Newfoundland and Labrador is projected to decline this year by 3.9 per cent and 4.7 per cent respectively.

In 2015, Canadian exports, job growth and incomes are expected to improve with mortgage interest rates edging only slightly higher. These opposing factors should benefit sales activity in housing markets where demand has been softer and prices have remained more affordable. Sales in relatively less affordable housing markets are expected to be more sensitive to higher mortgage interest rates.

National activity is now forecast to reach 485,200 units in 2015, representing a year-over-year increase of 0.8 per cent. While sales nationally are still expected to peak this year and trend lower throughout 2015, they are not expected to return to weakened levels recorded in the first quarter of 2014.

Sales activity is forecast to grow fastest in Nova Scotia (+2.6 per cent), followed by New Brunswick (+2.9 per cent). Quebec (+1.2 per cent), Ontario (1.1 per cent), British Columbia (0.5 per cent), and Alberta (0.1 per cent) are forecast to see little change on an annual basis, reflecting a rising trend in 2014 mirrored by a softening trend in 2015.

There are a number of upside and downside risks to the forecast. In British Columbia and Ontario, activity is still expected to be held in check by eroding affordability for single family homes. However, with sales in British Columbia now only at average levels, they may climb further before rising interest rates begins to materially reduce affordability. Sales in Ontario may also remain stronger than expected should new listings continue to come onto the market at higher levels in places and in market segments where a lack of supply in recent years has led to pent-up demand.

Additionally, consumer confidence and job growth in the Prairies may come under downward pressure depending on how far oil and non-energy commodity prices decline and on how long they remain low.

Saskatchewan and Manitoba sales are forecast to post declines of seven-tenths of one per cent and nine-tenths of one per cent respectively in 2015. Both provinces are experiencing higher than normal levels of supply while sales have shown recent signs of moderating.

The national average price has evolved largely as expected since the spring, resulting in little change to CREA’s previous two forecasts.

The national average home price is now projected to rise by six per cent to $405,500 in 2014, with similar percentage price gains in British Columbia, Alberta, and Ontario. Saskatchewan and Manitoba are expected to post increases of close to three per cent. Newfoundland and Labrador and Prince Edward Island are forecast to see average home prices rise by a little over one per cent this year, while Quebec is forecast to see an increase of slightly below one per cent. Prices are forecast to recede by about half a per cent in New Brunswick and Nova Scotia.

The national average price is forecast to edge higher by 0.9 per cent in 2015 to $409,300. Alberta and Manitoba are forecast to post average price gains of almost two per cent in 2015, followed closely by Ontario at 1.3 per cent. Average prices in other provinces are forecast to remain stable, edging up by less than one percentage point.

Average Price Forecast 2014 2015 CREA

Sales Activity Forecast 2014 2015

Sales Activity Historical Forecast 2014 2015 CREA

Link to article

1 265 266 267 268 269 541