This monthly information is a fantastic resource for our sellers!
Kelowna, BC – Ever wonder where home buyers come from? Since September 2010, the Okanagan Mainline Real Estate Board (OMREB) has been collecting information from our members with regards to where our buyers are coming from – both geographically and demographically.
September 2012 Home Buyers have been coming from:
- Within the OMREB Board area (58.1%)
- Alberta (16.8%)
- Lower Mainland/Vancouver Island (10.3%)
- Other areas of BC (8.0%)
- Saskatchewan/Manitoba (2.4%)
- Eastern Canada/Maritimes (2.3%)
- Outside Canada (1.4%)
- North West Territories/Yukon* (0.5%)
September 2011 – Home Buyers came from:
- Within the OMREB Board area (56.5%)
- Alberta (14.9%)
- Lower Mainland/Vancouver Island (11.1%)
- Other areas of BC (8.3%)
- Saskatchewan/Manitoba (3.1%)
- Eastern Canada/Maritimes (3.1%)
- Outside Canada (2.4%)
- Northwest Territories/Yukon* (0%)
Real estate markets can be driven by local demand, demand stemming from outside the region or province, by international sources, or by a combination of all three. Knowing how many homes are sold and at what price is an important part of the picture. However, understanding who your buyers are and where they come from can reveal not only market dynamics but also identify which factors actually drive local demand. For example, a change in entry level buyer activity can have a ripple effect throughout the entire market as many move‐up buyers rely on first‐time buyers to purchase their existing homes. First‐time buyers are a driving factor and they stimulate the chain of ownership.
Low interest rates and attractive pricing alone don’t necessarily mean increased sales activity. Many additional factors affect consumer confidence, including local employment opportunities and the overall economic environment. Real estate markets can also react differently depending on the influence of various buyer segments.
Housing markets in Vancouver, for example, have been bolstered by off‐shore buyers while the Alberta market is closely linked to natural resource prices and their job market. Since a sizeable proportion of local sales come from buyers that originate outside our region, with about 40% being non‐local, we need to keep an eye on Alberta and the Lower Mainland. Our monthly Buyers Survey
helps to do just that.
So if you were curious as to what is moving our local real estate market, this is a bit of insight. As always I am available to answer any questions about buying in the Okanagan. Marika@poshpropertieskelowna.com.