There are currently 98 active foreclosures (as of January 15,2011) amongst the entire listing inventory for the Central Okanagan. There are 3,623 active listings this month (including the 98 foreclosure properties) versus 3,863 listings last month, a 6.62% drop in inventory level.
Active Foreclosure Inventory breakdown:
7 Lots and Acreages (Ranging in value from $95,000 to $995,000)
6 Manufactured Home (Ranging in value from $69,800 to $162,900)
23 Strata Properties (Ranging in value from $139,000 to $2.99 Million)
52 Single Family Residential (Ranging in value from $189,900 to $3.30 Million)
There were a total of 13 foreclosure sales in December 2010. Here's the breakdown: There was one condo sold at $180,500, two townhomes $177,500 and $645,000, one manufactured home at $88,000, one building lot sold for $144,000 and eight residential sales from $285,000 to $390,000.
The overall foreclosure inventory pales in comparison to the total inventory in the Central Okanagan which is a good sign. Buyers ask me all the time if I foresee a huge influx of court ordered sales to the Kelowna real estate market? In my opinion having watched how the local banks and lenders handle the foreclosure process the answer would have to be, no I don't. The reason being is banks and/or lenders reluctantly foreclose on homes until it is absolutely necessary (almost as if they hate to lose money or something). The process is very time consuming and very involved so it truly is a last resort for them to exercise!
I recently attended a court hearing for some buyers that were interested in placing an offer on a Rutland area home. This home had been on the market for an exceptionally long time (nearly a year) before an accepted offer materialized. Once the court date was set and I called the listing agent to verify the date and time of the court hearing I was informed there was likely going to be some competitive offers on the subject property. Sure enough, upon arriving there was three other Realtors ® with offers as well (this does not always happen). At the end of the hearing, my buyer's offer was not enough as there was a substantially higher offer that the judge ultimately accepted. It is worth noting that this scenario is not unusual and as always I like to remind my buyers that "there really is no guaranteed strategy to pick up foreclosure homes at greatly reduced prices."
Foreclosure homes now in the $400,000 or less range continue to be the most sought after and competed for homes in the courts. I cannot emphasize enough the importance of understanding the foreclosure process and how the BC Court System works prior to placing an offer on one of these properties.
If you would like more information on the how Court Ordered Sales work in Kelowna, West Kelowna and the Central Okanagan please call or text me at (250) 808-7700 or email: firstname.lastname@example.org