Why track the number of single family homes on the market at any one time? The number of single family homes on the MLS system and the number of sales each month is a strong indicator of local Real Estate market health. The chart below shows the number of single family homes in selected years between 1993 and now. Only some years are indicated because the chart would be very confusing if every year was used. Some of the months selected are used because they represent pivotal changes in the market. For example, the highest number of single families was June, 1998. That is important, because from both a Buyers and Sellers perspective this is not a healthy situation in the North Okanagan and we don’t want to be there again!

A rapid fall in the number of homes listed (1999) is a strong indicator that a Bull (charge!) market is beginning. That means that prices are probably going to go up. Conversely, a rapid rise in the number of homes listed (1993 and 1998) is a strong indicator that a Bear (Run!) market is beginning. That means that prices are probably going to go down.

While the listings count is important, it is not the only factor. The number of sales each month compared to the listings is a better indicator of Real Estate market health. If monthly sales are less than 10% compared to listings then it is a Buyers market. If sales are between 10 and 15% compared to lisings  then it is a Balanced market. If sales are above 15% compared to listings then it is a Sellers market. The best market for everyone is Balanced. In this market, there are lots of homes for Buyers to choose from and there are enough sales each month to keep Sellers from panicking and dropping their prices. For the North Okanagan that means listings between 650 and 750 single family homes and sales of about 70 to 105 each month.

For February, 2011 single family home listings were 624 and the number of sales were 36 or 5.8%. While we are close to the ideal number of homes listed (624) there were NOT enough sales to support that number of listings. We are still in a Buyers market. Prices are going to stay flat, or even fall should this situation remain.  One characteristic about a Buyers market is that Sellers don’t want to drop their prices and it takes consistant pressure to make them lower their prices, and the drop is gradual. Sellers tend to kick and scream all the way down!

The folks at VNet Consulting have helped to make Okanagan’s Home Team web site much better. Customers can now search for listings right on the front page without clicking down the menus. The site is cleaner, easier to use and more relevant to anyone looking for Real Estate information. Your comments on the site are welcome!

Please check it out at:  www.okanaganshometeam.com

Strata Council primer

You may own or know someone who owns a condo or townhouse and probably have wondered what the Strata Council is for and why do they have them? Strata Councils are required for any registered strata development that has property designated as “common”, or shared by all of the owners. In order to comply with the Provincial legislation under the Strata Property Act, members of the strata must form a Strata Council to manage the property.

Here are some of the specific duties of a Strata Council:

• keep a list of the names of owners and tenants, and similar documents;

• pay strata corporation bills;

• make themselves accessible by providing a telephone number or some other method of contact;

• enter into strata corporation contracts and supervise the performance of duties under those contracts;

• hire and supervise employees of the strata corporation;

• keep all strata corporation records;

• make records available for inspection and copy for the owners for a charge of not more than 25 cents per page;

• call and conduct general meetings;

• complete “Information Certificates” (Form B) and “Certificates of Payment” (Form F);

• prepare the budget and financial statements;

• Direct investments and expenditures;

• collect strata fees and other money owed to the strata corporation;

• enforce the bylaws and rules;

• obtain adequate strata corporation insurance;

• approve strata lot alterations;

• grant owners and tenants short term exclusive use of common property; and

• exempt the application of rental restriction bylaws for individual owners based on hardship.

Strata Corporations must meet at least once a year for an annual general meeting where all members get an opportunity to vote on changes to the operation. If you want to become a Strata Council member you will have to be voted in by the members of the group. In most cases, that is pretty easy to do since it is generally a volunteer position with a lot of responsibility. It is a great way, however, to help to make your Strata run more effectively.