Stability returns to Okanagan real estate market

Cooler heads are starting to prevail in the Okanagan housing market, according to fresh monthend data from the Association of Interior Realtors.

The data shows benchmark prices across the three main housing categories remained relatively stable on a month-over month basis in July, although the total number of sales was down 33% to 1,196 on a year-over-year basis.

“Seasonally, it is not out of the ordinary to see a dip in sales in the summer, although real estate market activity across most regions in the province was below average last month, not just within the Interior,” said association president Lyndi Cruickshank in a press release.

“A number of factors, or even a combination of factors such as the interest rate hikes, recommencement of travel and the school break could all be reasons consumers pushed pause on their real estate plans as they focused on enjoying the hot summer days.”

The largest month-over-month benchmark price increase was found in the South Okanagan townhouse category, where units moved for $552,000, marking a 3.4% hike from June.

The biggest decline was a 3.1% slide in the benchmark price of single-family homes in the North Okanagan to $774,000.

In the Central Okanagan, the benchmark price of a single-family home remained stubbornly fixed at about $1.1 million, while prices for benchmark townhomes rose 2.8% to $784,000 and prices for benchmark apartments and condos fell 2.8% to $522,000.

At the same time, the number of active listings rose to 7,698 in July, up 57% from the year-ago period.

“We are seeing inventory starting to accumulate, slowly moving upward to healthier levels of inventory, which is a welcomed relief for prospective buyers. However, the higher mortgage interest rates are still impacting the real estate market with some home buyers finding it more difficult to qualify for mortgages,” said Cruickshank.

“We will have to see what the Bank of Canada does (at its next scheduled rate announcement) come September. Hopefully, we will see fixed mortgage rates come down and bring some relief for buyers, particularly first-time buyers. Any interest rate relief may see an increase in sales activity returning to the market over the fall months.”