Real Estate Business Models and Market Dynamics

September 26, 2012

Two things happened last week that I wanted to share with you. 

Firstly, I was able to attend the Urban Developments Institute (UDI)sponsored CMHC Annual Forecast Luncheon and hear Paul Fabri talk about the Okanagan ( OK - Mainly Kelowna) Real Estate Market. The second thing was that I was asked to provide a report on the Vernon BC residential real estate market for the Board of Directors of The Rise.

Sometimes - even when we look at stats all the time, it is good to take a step back and gain perspective.  I will go into more details regarding the actual content of those reports in future posts.  

What I wanted to explore today is a thought that occurred to me as a result of these two events.

 "What it will take in order to turn the tide from favoring BUYERS to a Balanced Market??? And what role do Brokerage Business Models have on that process - if any?

Real Estate prices rise and fall in direct proportion to supply and demand - going up when there are more buyers than sellers, and forced down when there are more sellers than buyers. Possibly because of the way the business began - in which only Sellers were represented in a transaction ( yes, all REALTORS once owed alegence only the the Seller) the business mantra 

 "You've got to List to Last"

Real Estate has evolved over time... Buyer's now have designated agents and many REALTORS focus on exemplary customer service to their clients as opposed to creation of a large listing inventory where a mathematical formula determines:

• how many calls you need to make -  to obtain how many appointments
• to convince how many people to LIST (not sell)
• based on the number of sales being made
• to make your business viable.

One of the great things about being in business for yourself, is that you can determine HOW you do business. Definitely there is case to be made economically for the REALTOR who choses a production based, high listing inventory system. Every town has a few of them. You likely know who they are - because they call you to see if your plans remain the same from time to time.

What happens when the Discount Brokerage Model is added to the Listing Production Model?

It seems pretty easy to predict - if you make less money per transaction, then you need to accomplish more transactions. In order to do that - you need to have more listings in increase your chances that one of them will sell...

Would now be a good time to revisit the Supply and Demand aspect of turning the tide from a Buyers Market to balancing conditions?

What are your thoughts? More to follow.

Ciao for now.

Brell

If you or anyone you know is looking for real estate services, I'd love to help.

Brell - Your Okanagan Real Estate Umbrella 250-308-4310
Brenda Ellis REALTOR®

Sutton Group - Lakefront Realty 
2749 30 Street, Vernon, BC, V1T 5C6

A growing team, a different approach...we are better together!

Visit my site Share with me on Facebook Share with me on Google+ Share with me on Twitter

Posted via email from brell's posterous

Combined Overall Residential MLS Sales Stats Show Slowdown.

September 23, 2012

Everything is down when we look at the combined Okanagan Shuswap Sales results compared to the week prior. The number of transactions decreased by 8, The average sale price fell by $27,002 and the overall volume was $6,137,240 less. Less sales and less expensive properties selling tell the tale for the week.

 - look at WHAT sold in order to determine what is really going on in the 3 zones of Okanagan Shuswap Real Estate.

Okanagan Shuswap Residential MLS Properties Sold (119) Sept. 17 - 23
		List Price	Sold Price	DOM	Beds	Total Baths	Finished Floor Area
	Min	$17,500	$17,000	7	1	1
	Max	$975,000	$945,000	1204	5	5	4878
	Avg	$357,475	$338,490	139	3	2	1833
	Sum	$42,539,498	$40,280,306

Big drop in the average sale price this week in the Central Okanagan - with 29 of the 71 sales under the $300,000 mark. Meanwhile only 14 were above $500,000. The number of sales was only lower by 1 property.

With a number of higher end sales in North Okanagan real estate this week, we saw the Average sale price rise to $350,968. Fewer sales occurred in this region this week. but some substantial properties sold with 5 sales over $500,000. The number of sales dropped by 6.

The number of properties sold  in the Shuswap was almost unchanged from the week prior, but the average sale price dropped $71,585 this week. 8 (almost half of the total number of sales) were under $200,000.and only 1 property over $500,000 sold. 

Check out more stats on last weeks residential MLS property sales on our website blog.

        

  Find us on Google+  (feel free to share with your 

network)

If you or anyone you know is looking for real estate services, I'd love to help.

Brell - Your Okanagan Real Estate Umbrella 250-308-4310
Brenda Ellis REALTOR®

Sutton Group - Lakefront Realty 
2749 30 Street, Vernon, BC, V1T 5C6

A growing team, a different approach...we are better together!

Visit my site Share with me on Facebook Share with me on Google+ Share with me on Twitter

 

Combined Overall Residential MLS Sales Stats Show Slowdown.

September 23, 2012

Everything is down when we look at the combined Okanagan Shuswap Sales results compared to the week prior. The number of transactions decreased by 8, The average sale price fell by $27,002 and the overall volume was $6,137,240 less. Less sales and less expensive properties selling tell the tale for the week.

 - look at WHAT sold in order to determine what is really going on in the 3 zones of Okanagan Shuswap Real Estate.

Okanagan Shuswap Residential MLS Properties Sold (119) Sept. 17 - 23
		List Price	Sold Price	DOM	Beds	Total Baths	Finished Floor Area
	Min	$17,500	$17,000	7	1	1
	Max	$975,000	$945,000	1204	5	5	4878
	Avg	$357,475	$338,490	139	3	2	1833
	Sum	$42,539,498	$40,280,306

Big drop in the average sale price this week in the Central Okanagan - with 29 of the 71 sales under the $300,000 mark. Meanwhile only 14 were above $500,000. The number of sales was only lower by 1 property.

With a number of higher end sales in North Okanagan real estate this week, we saw the Average sale price rise to $350,968. Fewer sales occurred in this region this week. but some substantial properties sold with 5 sales over $500,000. The number of sales dropped by 6.

The number of properties sold  in the Shuswap was almost unchanged from the week prior, but the average sale price dropped $71,585 this week. 8 (almost half of the total number of sales) were under $200,000.and only 1 property over $500,000 sold. 

Check out more stats on last weeks residential MLS property sales on our website blog.

        

  Find us on Google+  (feel free to share with your 

network)

If you or anyone you know is looking for real estate services, I'd love to help.

Brell - Your Okanagan Real Estate Umbrella 250-308-4310
Brenda Ellis REALTOR®

Sutton Group - Lakefront Realty 
2749 30 Street, Vernon, BC, V1T 5C6

A growing team, a different approach...we are better together!

Visit my site Share with me on Facebook Share with me on Google+ Share with me on Twitter

 

Posted via email from brell's posterous

Untitled

Hot off the OMREB Presses.. here are the results for the August Buyers Agent Survey:

AUGUST SURVEY OVERVIEW

A total of 225 respondents participated in this survey – representing 54% of the 414 OMRE

B sales representatives who acted as Buyers Agents, and 39% of the 581 deals closed on behalf of Buyers in July.  

Property Type:

  During the month of August, there was a noticeable jump in sales to Buyers of Recreation Property (15.3% compared to 9.7%) and to Purchasers of Retirement Home/Seniors Community Units (6.8% compared to 3.9%) over July.

Buyer Type (Family Dynamic):
 

 In August, there was a significant increase in purchases by Two Parent Families with Children -- 33.0% compared to 26.4% in July.

Moving From: 

  Compared to July, there was more movement within the Board Area in August -- rising to 58.7% of purchases from 47.2% in the previous month. 

For a more detailed summary - visit my August Buyers Report Summary.

     

  Find us on Google+  (feel free to share with your 

network)

 

 

If you or anyone you know is looking for real estate services, I'd love to help.

Brell - Your Okanagan Real Estate Umbrella 250-308-4310
Brenda Ellis REALTOR®

Sutton Group - Lakefront Realty 
2749 30 Street, Vernon, BC, V1T 5C6

A growing team, a different approach...we are better together!

Visit my site Share with me on Facebook Share with me on Google+ Share with me on Twitter

 

Posted via email from brell's posterous

Untitled

Hot off the OMREB Presses.. here are the results for the August Buyers Agent Survey:

AUGUST SURVEY OVERVIEW

A total of 225 respondents participated in this survey – representing 54% of the 414 OMRE

B sales representatives who acted as Buyers Agents, and 39% of the 581 deals closed on behalf of Buyers in July.  

Property Type:

  During the month of August, there was a noticeable jump in sales to Buyers of Recreation Property (15.3% compared to 9.7%) and to Purchasers of Retirement Home/Seniors Community Units (6.8% compared to 3.9%) over July.

Buyer Type (Family Dynamic):
 

 In August, there was a significant increase in purchases by Two Parent Families with Children -- 33.0% compared to 26.4% in July.

Moving From: 

  Compared to July, there was more movement within the Board Area in August -- rising to 58.7% of purchases from 47.2% in the previous month. 

For a more detailed summary - visit my August Buyers Report Summary.

     

  Find us on Google+  (feel free to share with your 

network)

 

 

If you or anyone you know is looking for real estate services, I'd love to help.

Brell - Your Okanagan Real Estate Umbrella 250-308-4310
Brenda Ellis REALTOR®

Sutton Group - Lakefront Realty 
2749 30 Street, Vernon, BC, V1T 5C6

A growing team, a different approach...we are better together!

Visit my site Share with me on Facebook Share with me on Google+ Share with me on Twitter

 

Gearing up for the Ski Season - Think Silver Star Real Estate

September 17, 2012 

With Season Passes on sale   - it is time to think Silver Star!  

When we looked at the 14 residential MLS properties reported sold within Silver Star in 2012 we see that on average, sellers accepted 9.89% of the original listed price.

Buyers agents negotiated discounts ranging from 3.02% to 20.09%. In one case the seller garnered 100% of asking. Days to sell ranged from 8 – 745.

         

  Find us on Google+  (feel free to share with your 

network)

 

The properties in this analysis can be summed up as follows:

List Prices:     $99,900 - $849,000

Sold Prices:    $99,900 - $780,000

Bedrooms:      1 - 6

Bathrooms:     1 - 5

Sq. Feet:      0 (land)  -  3958

$ / Sq. Ft.    $0. (land) to $390.

Built between 1991 and 2011 

To access property information about what sold, visit our Silver Star Page : 

 

A quick look shows 117 properties listed for sale on Sept. 17.2012

View Silver Star Properties for sale via our online portal

 

 

If you or anyone you know is looking for real estate services, I'd love to help.

Brell - Your Okanagan Real Estate Umbrella 250-308-4310
Brenda Ellis REALTOR®

Sutton Group - Lakefront Realty 
2749 30 Street, Vernon, BC, V1T 5C6

A growing team, a different approach...we are better together!

Visit my site Share with me on Facebook Share with me on Google+ Share with me on Twitter

 

Gearing up for the Ski Season - Think Silver Star Real Estate

September 17, 2012 

With Season Passes on sale   - it is time to think Silver Star!  

When we looked at the 14 residential MLS properties reported sold within Silver Star in 2012 we see that on average, sellers accepted 9.89% of the original listed price.

Buyers agents negotiated discounts ranging from 3.02% to 20.09%. In one case the seller garnered 100% of asking. Days to sell ranged from 8 – 745.

         

  Find us on Google+  (feel free to share with your 

network)

 

The properties in this analysis can be summed up as follows:

List Prices:     $99,900 - $849,000

Sold Prices:    $99,900 - $780,000

Bedrooms:      1 - 6

Bathrooms:     1 - 5

Sq. Feet:      0 (land)  -  3958

$ / Sq. Ft.    $0. (land) to $390.

Built between 1991 and 2011 

To access property information about what sold, visit our Silver Star Page : 

 

A quick look shows 117 properties listed for sale on Sept. 17.2012

View Silver Star Properties for sale via our online portal

 

 

If you or anyone you know is looking for real estate services, I'd love to help.

Brell - Your Okanagan Real Estate Umbrella 250-308-4310
Brenda Ellis REALTOR®

Sutton Group - Lakefront Realty 
2749 30 Street, Vernon, BC, V1T 5C6

A growing team, a different approach...we are better together!

Visit my site Share with me on Facebook Share with me on Google+ Share with me on Twitter

 

Posted via email from brell's posterous

127 Properties Reported Sold in Okanagan Shuswap last week.

Tamara and Debbie head out for an evening paddle on Okanagan Lake Sept. 15, 2012

September 16, 2012

The number of sales transactions was up by 19 this week - putting the number of transactions back up to 127 - equal to 2 weeks ago. The average price dropped from its 2 week stint at approximately $381,000 to $$365,492 - reflecting lower bottom and top of the market benchmarks from the week prior.

 - look at WHAT sold in order to determine what is really going on in the 3 zones of Okanagan Shuswap Real Estate.

Okanagan Shuswap Residential MLS Properties Sold (127) Sept. 10 - 16, 2012
		List Price	Sold Price	DOM	Beds	Total Baths	Finished Floor Area
	Min	$13,800	$11,500	7	1	1
	Max	$1,395,000	$1,280,000	1291	6	5	5467
	Avg	$384,945	$365,492	142	3	2	1741
	Sum	$48,888,038	$46,417,546

72 residential MLS properties were reported sold in the Kelowna BC and surrounding areas by REALTORS Sept. 10 - 16, 2012. The average sale price was $390,991 and the total sales volume topped $28,000,000.

36 residential real estate properties were reported sold by REALTORS in the North Okanagan ( Vernon BC and surrounding areas) between Sept. 10 - 16, 2012. Average Price for properties sold was $342,378 and total sales volume equalled over $12,325,000

19 properties were reported sold by REALTORS in the Shuswap Revelstoke zone September 10-16. 2012. The average sale price was $313,079 and the total sales volume was more than $5,948,000

Posted via email from brell's posterous

127 Properties Reported Sold in Okanagan Shuswap last week.

Tamara and Debbie head out for an evening paddle on Okanagan Lake Sept. 15, 2012

September 16, 2012

The number of sales transactions was up by 19 this week - putting the number of transactions back up to 127 - equal to 2 weeks ago. The average price dropped from its 2 week stint at approximately $381,000 to $$365,492 - reflecting lower bottom and top of the market benchmarks from the week prior.

 - look at WHAT sold in order to determine what is really going on in the 3 zones of Okanagan Shuswap Real Estate.

Okanagan Shuswap Residential MLS Properties Sold (127) Sept. 10 - 16, 2012
		List Price	Sold Price	DOM	Beds	Total Baths	Finished Floor Area
	Min	$13,800	$11,500	7	1	1
	Max	$1,395,000	$1,280,000	1291	6	5	5467
	Avg	$384,945	$365,492	142	3	2	1741
	Sum	$48,888,038	$46,417,546

72 residential MLS properties were reported sold in the Kelowna BC and surrounding areas by REALTORS Sept. 10 - 16, 2012. The average sale price was $390,991 and the total sales volume topped $28,000,000.

36 residential real estate properties were reported sold by REALTORS in the North Okanagan ( Vernon BC and surrounding areas) between Sept. 10 - 16, 2012. Average Price for properties sold was $342,378 and total sales volume equalled over $12,325,000

19 properties were reported sold by REALTORS in the Shuswap Revelstoke zone September 10-16. 2012. The average sale price was $313,079 and the total sales volume was more than $5,948,000