Okanagan housing market showing signs of life

Housing sales rose across the Okanagan last month and a key decision Wednesday from the Bank of Canada should help keep the market aloft.

A total of 831 homes changed hands across the Okanagan in February, down about half on a year-over-year basis, but up from 555 sales in January, according to fresh data from the Association of Interior Realtors.

“The uptick in sales activity compared to the previous month suggests that we are heading in a positive direction,” said association president Lyndi Cruickshank in a press release.

“The overstimulated boom of the last few years, along with multiple mortgage rate hikes made many buyers and sellers hesitant to make any moves. Now that the dust is starting to settle, these buyers and sellers can move forward in a transitionally healthier real estate market more reminiscent of pre-pandemic conditions.”

But while sales were increasing, some prices kept sliding.

Most notable was the benchmark price of single-family home in the Central Okanagan, which fell from $977,000 in January to $971,000 in February, marking a 16-month low.

Conversely, in the South Okanagan, that same single-family home traded for $669,000 in February, up from $657,000 in January, while in the North Okanagan it sold for $709,000, up from $697,000.

Finally, the average time to sell a home fell to 76 days in February from 86 in January, while the number of new listings increased from 1,430 to 1,579.

“As we have seen throughout the last few years, the lack of housing supply continues to limit buyer options and ultimately creates a continued tight hold on inventory,” said Cruickshank.

“Hopefully, the provincial government’s recently announced budget commitment for its refreshed housing strategy will help bring some much-needed new inventory to the market.”

The ink on the month-end housing data was barely dry Wednesday when the Bank of Canada announced it’s holdings its key interest rate at 4.5 per cent after eight consecutive increases dating back to March 2022 in a bid to lower inflation. It also had the effect of driving up mortgage rates and thereby dampening home sales.