Real Estate Update in the Kootenays

Keith W Hern, Managing Broker, KH Realty Limited.Real Estate gives an update in the Kootenays.

Keith W Hern

Managing Broker

KH Realty Limited.

The Kootenay Real Estate Board (KREB), in data released last week, reported that the total value of real property sales for the East and West Kootenays for the 12 months to the end of December 31, 2011 was $537 million down thirteen percent (13 percent) from the same period for 2010.

The total number of properties that traded hands was reported to be 2112 down from 2375 last year, a decline of eleven percent (11 percent).

One residential property sold in Golden for the month of December.

Cumulative residential property sales in the town of Golden for the year-ending December 31, 2011 were only $9.7 million compared to $13.3 million for the year 2010, a drop of twenty seven percent (27 percent), and $16.1 million in 2009.

This is the lowest level of real estate sales since 2001 and well below the peak of $23.4 million reported in 2007.

In Rural Golden, two residential properties sold in December bringing the total for the year to 36 compared to the 37 properties that sold in 2010.

Total real estate sales for the 12 months ending December 31, 2011 were $10.9 million in 2011 compared with $12.9 million in 2010, a decline of fifteen percent (15 percent) and $12.0 million in 2009.

The sale of Kicking Horse Mountain Resort to Resorts of the Canadian Rockies (RCR) will have long-term positive effects for Golden when development of the ski hill recommences.

However, the short term effects will be negative if RCR consolidates the administration, accounting and marketing functions with its main office in Calgary.

With no other positive economic news on the horizon, a buyer’s market will persist through 2012 in both the town of Golden and Rural Golden and prices may be expected to remain stable or decline over the next 12 months.

Interest rates remain at historic lows. This is good news for prospective buyers as, with low interest rates, properties will become more affordable.

In the longer term, the economy in Calgary is showing signs of recovery and the Calgary real estate market is strengthening. If this trend continues, buyers from Alberta may become active again in 2013 and strengthen the market for recreational and retirement property.