This is a 10-fold increase from a year ago, but at least one realtor expects buyers to snap up the homes at market value.
"Looking at trends in this market, I think we are cruising to 200 foreclosures being listed this year," said Justin Neumann of Century 21-Kelowna, who has been tracking the foreclosure action. He said about half the foreclosures are single-family detached houses, not condominiums, suggesting that the market malaise is spreading from the speculation sector to regular homeowners.
Chris Shillington, broker-owner of Re/Max Kelowna, said most of the foreclosed homes were bought back in 2008 and many were condos bought during pre-sales. "It has just taken this long to work through to a foreclosure," he said. Shillington estimates that overall Kelowna prices are down at least 12 per cent from the peak in 2008, but others estimate it is closer to 20 per cent.
Most banks are protected from defaults because many homes have mortgage insurance, usually through Canada Mortgage and Housing Corporation, Neumann noted. "Don't expect to see screaming deals on these foreclosures," he said. "The homes are being listed at [today's] market value."
Vancouver's Allan Zaidel, a Sutton Group buyer's agent who looks for foreclosed properties, said across B.C. foreclosures are actually lower now than three months ago. He also estimated that "there are seven buyers" for every foreclosure, many of which are now in the Fraser Valley.
There are also a number in northern British Columbia and on Vancouver Island.
According to figures from the Okanagan Mainline Real Estate Board, 39 per cent of recent central Okanagan court-ordered sale properties sales were in Kelowna (9) and 47.8 per cent in west Kelowna (11). Of the 173 court-ordered sale properties now listed, there are five lots, one manufactured home, 78 single-family residential and 89 strata (apartments and townhomes) properties.
from Western Investor April 2012
