Home sales down in Okanagan and Kamloops but prices up

The average selling price for homes in Kamloops and the Okanagan rose in September over August for most housing types.

The main exception is for single-family house prices that fell in three of the four Thompson-Okanagan markets covered by the latest statistics released by the Association of Interior Realtors today, Oct 6.

Prices for single-family houses dropped to $672,859 in Kamloops, down only about $4,000 from August but down $148,000 from the May 2022 peak of $820,990.

The month over month single-family house drop was the worst in the South Okanagan, falling almost $150,000 to $710,664 from August. The highest average price recorded in the South Okanagan was $860,038, which was in August.

In the North Okanagan, the drop was more than $49,000 to $675,000 and down by almost $200,000 from the May peak of $873,339.

The Central Okanagan, on the other hand, saw a $44,000 increase in the selling price of an average single-family house, hitting $1,090,830 in September. Still, that’s more than $150,000 down from the April peak of $1,242,760.

The selling price of townhomes went up in each market.

Condos dropped in the Central Okanagan by almost $97,000 and South Okanagan by almost $13,000 but went up in the other two markets.

The biggest gain in any classification was in the North Okanagan where condos prices jumped more than $110,000.

The number of housing units sold dropped throughout the region.

The biggest fall was in the South Okanagan (by 49.5% compared to September 2021) followed by Kamloops (46.1%), Central Okanagan (39.1%) and the North Okanagan (29.4%).

“We are seeing that the Bank of Canada's interest rate tightening in the last few months is keeping some buyers on the sidelines, although demand remains strong,” association president Lyndi Cruickshank said in a news release.

There has also been a 60% increase in the number of homes listed for sale in the association’s region compared to September 2021 (the region includes the Kootenays, Shuswap-Revelstoke and South Peace).

“While inventory levels have been climbing, it is still far below pre-pandemic listings levels and far below where it needs to for the needle to move into a balanced market,” Cruickshank wrote. “Pent-up demand is still outpacing supply; however, the increased levels now offer buyers greater options and opportunities than they experienced in early 2022.”

The association’s region, as a whole, saw a 37.3% drop in sales, which is better than in some big city markets. The Greater Vancouver area saw sales drop 46.4% while Toronto sales were down 44% in September versus 2021.

READ MORE: Toronto-area home sales in September down 44% from last year as new listings fall

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