Ever wonder where home buyers come from? Since September 2010, the Okanagan Mainline Real Estate Board (OMREB) has been collecting information from members with regards to where buyers are coming from – both geographically and demographically.
The purpose of collecting this data is to add another element to market knowledge and a better understanding of current trends. The longer record, the more insight the board will have.
On average during the past five months, home buyers have been coming from: within the OMREB board area (57.28 per cent); Alberta (14 per cent); Lower Mainland/Vancouver Island (13 per cent); other areas of BC (7.3 per cent); Saskatchewan/Manitoba (3.78 per cent) ; outside Canada (2.58 per cent); and Eastern Canada/Maritimes (1.88 per cent).
January 2011 survey highlights: 31.7 per cent of purchases in the OMREB board area were by move-up buyers, and 27 per cent by first-time buyers, 7.9 per cent single family to strata, 4.8 per cent revenue property, 3.2 per cent recreation property, 3.2 per cent strata to single family, 1.6 per cent to retirement community.
The majority of buyers, 29.9 per cent, were two parent families with children, 19.4 per cent of buyers were couples without children, 17.9 per cent were single females, 13.4 per cent single males, and 11.9 per cent empty nesters/retirees.
In terms of financing, 53.8 per cent used conventional mortgage (with more than 20 per cent down), 27.7 per cent were a high ratio mortgage (less than 20 per cent down, and 18.5 per cent paid cash.
For January, 64.2 per cent were from within OMREB board area, 13.4 per cent were from Lower Mainland/Vancouver Island, nine per cent from Alberta, and six per cent from other areas of B.C.
Within the region, 56.7 per cent of purchases were in Kelowna/West Kelowna, 10.4 per cent in Vernon/Coldstream, and nine per cent in Salmon Arm.
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,” said Brenda Moshansky, OMREB president and realtor in the central zone.
“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.”
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, are being bolstered by off‐shore buyers while the Alberta market is closely linked to natural resource prices and their job market,” Moshansky explains. “Since a sizable proportion of local sales come from buyers that originate outside our region, 50 per cent 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.
The board area covers the Central Okanagan, North Okanagan and Shuswap – from Peachland to Revelstoke.