Southern Interior home sales slump, but prices still increase

Sales of homes across the Okanagan and Kamloops saw a huge downturn in June, but while the number of properties sold declined, prices still increased.

Figures released from the Association of Interior Realtors show the Central Okanagan saw the biggest decline with homes sales down by almost 50 per cent compared to June 2021.

Both the North Okanagan and the Shuswap/Revelstoke area saw a 23 per cent drop in housing sales, while sales in Kamloops dropped by 26 per cent.

However, while the number of units sold was down, prices in almost all regions and all categories have increased.

The benchmark price for a single-family home in the Central Okanagan was up 15 per cent to $1,112,400.

Single-family homes in the North Okanagan also increased 14 per cent to $798,000 and in Shuswap/Revelstoke prices climbed to $757,600 – a 15 per cent increase.

Single-family homes in the South Okanagan saw the largest price increase, up 18 per cent to $816,300.

The price of townhomes and apartments increased in all markets across the region, with the exception of Kamloops which saw a dramatic drop.

The benchmark price of an apartment in Kamloops dropped almost 30 per cent to $403,323.

A media release from the Association of Interior Realtors says recent mortgage rate interest hikes by the Bank of Canada have slowed the market.

"It’s not unusual that mortgage rates are impacting market activity, specifically in the higher-priced markets," Association of Interior Realtors president Lyndi Cruickshank said in a media release. "This is what typically happens when interest rates move upward. It makes buying a home more costly, making what a purchaser can afford more limited. We are seeing this effect, particularly in what is typically a higher-priced home type. However, this shift is creating a welcome opportunity for buyers to slow down in their decision making, which is a welcome relief for many."

The release says new residential listings increased by 14 per cent with 3,265 new listings recorded compared to the same period last year in the Okanagan.

"The overall active listings also saw a healthy upswing with 7,154 listings currently on market, an increase of 45 per cent in year-over-year comparisons," the realtor association says.

In Kamloops, there were 584 new listings added in June 2022 a 15 per cent increase compared to the same time last year.

"Overall inventory of active listings saw a 101 per cent injection compared to June 2021," the association says.

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