Michael Atherton's R.I. (B.C.) - Kelowna Real Estate Report - Update: September, 2004

Strong Real Estate Market Continues
The Real Estate market in the Central Okanagan continued it's strong run, with residential unit sales up 3.1% over August of 2003 and year to date sales up 6% over the previous year.  The dollar volume increase is 26.6%.  The average house sold price is now up to $278,745.  Last year it was $233,394 at this time.  Condos (apartments) average price is now $199,329 up a whopping 37.6% over $144,870 last year.  Townhouses also experienced a significant increase in price of 20% with the average price now $222,139 versus $185,047 in 2003.

INTEREST RATES UP SLIGHTLY
The bank of Canada recently raised its prime rate up a 1/4 point and its expected there may be more slight increases this fall to rein in some inflation tendencies in the economy.  However, mortgage rates are still very affordable with an adjustable rate as low as 3.00% and 3yr fixed at 4.55% and 5yr fixed at 5.05%.  You can even get a 10 year fixed rate at 5.85%, not bad for someone wanting long term stability in monthly payments.

Some Interesting Data from CMHC
- Home ownership in Canada is now up to about 66% up from 63.6% in 1996
- Outstanding mortgage debt on residential homes in Canada is $518.9 billion
- Home equity is a major component of a homeowners wealth, accounting for about 36% of net worth (with recent increase in house prices and the fall of the equity markets, its probably up closer to 40% today.)

On a Personal Note
The Atherton family is in Fall mode.  Andrew and Stephen are continuing their University careers.  Andrew is in his 4th (final?) year at UBC.  Stephen is starting his 2nd year at OUC.  Vanessa is still working at MEC un Vancouver and enjoying her apartment and the community on West Broadway.  Alex #1 son has just returned from China earlier this week.  He has discovered the joys and benefits of Yoga and is heading down to California in October for a 2 month Yoga instructors course.  My good wife Lynn has started back to her job with School Dist. #23 and the rewarding work with special needs children.  Life continues its wondrous path.

Thought du Jour
"A good rule for going through life is to keep the heart a little softer than the head."

Michael Atherton R.I. (B.C.) "That Real Estate Guy"