Sales in June were down from last month and 5.51% lower than June 2010!

The Average and Median Residential Prices have fallen again.

The Average and Median Price of Condo/Apt has increased again

The downward trend in Sales is continuing; year to date sales are down by 15.57% from the previous year.

SALES

Sales in June were down from the previous month; they decreased from 366 to 343.

The ratio of sales to listings is now 7.36%.

INVENTORY

Inventory is up from the previous month; it increased from 5,223 to 5308.

Total increase:  87.

HOUSE PRICES

Average Price      May                    June                     Change

Residential          $471,128           $456,580           ($14,548)

Apartment          $273,083           $289,912           +$ 16,829 

Townhouse         $349,839           $348,305            ($  1,534)

Median Price

Residential          $436,038           $422,500             ($13,538)

Apartment          $254,272           $284,000            +$ 29,728

Townhouse         $327,450           $340,750            +$ 13,300

Those who have their Condo/Apartments for sale should be happier as the Average and Median Sales prices have increased substantially.

With an inventory of 5,300 units and sales of 343 units in a month, we have over 15 months of inventory. It certainly is a Buyer’s market.

An Interesting Report from Capital Economics

“Housing valuations have lost all touch with fundamentals and household debt is at a record high,” economists at the research consultancy Capital Economics say in their most recent Canada Economic Outlook.

The report predicts a fall in house prices by as much as 25 per cent over the next three years.

The company says Canadian house prices are overvalued by approximately 25 per cent, close to excessive levels seen in the frothy U.S. market at its 2006 peak.

Over-building is already visible; the number of unoccupied houses and condos is at a record high. It closely resembles the 1994-95 housing slump, when the construction industry experienced a severe downturn.

The report forecasts falling house prices and smaller residential investment. Real estate currently makes up 6.8 per cent of Canada’s GDP. Lower prices would mean a hit to household net worth as property now accounts for one-third of a family’s total assets, the report found.

I find this report significant for the Canada as a whole. However, there will be some areas that will perform better. We will have to wait to see if Kelowna is one of those areas.