July residential property sales in the Okanagan region fell back to pre-pandemic activity in 2022.
But according to the Association of Inland Realtors, the record price for homes in the Okanagan and Shuswap/Revelstoke areas saw year-on-year increases in comparisons across all home categories, with the largest notable increase in North Okanagan, for condominiums.
The record price of residential units in North Okanagan increased by 29.2 percent compared to June 2021, recording $325,900.
The record price for single-family homes in North Okanagan is also up 12.3 percent.
The standard price represents a typical property within the market.
There has also been an increase in inventory in the market, which is good news for potential buyers.
The association reported that 1,196 residential units registered sales across the region last July, which represents a 33.3 percent decrease compared to the number of units sold during the hot market in July 2021.
“Seasonally, it is not uncommon to see a drop in sales in the summer, although real estate market activity in most areas of the county has been below average in the past month, and not just within the interior,” says association president Lindy Cruikshank.
“A number of factors, or even a combination of factors such as higher interest rates, resumption of travel and school leave can all be reasons for consumers to pause their real estate plans while they focus on enjoying the hot summer days.”
New housing unit listings witnessed an 8.1 percent increase within the region compared to the same period last year, when 2,488 new listings were registered.
Active listings in general also saw a good 56.8 percent intervention compared to July 2021, with a total of 7,698 listings currently in the market.
“We are seeing inventory start accumulating, slowly moving to higher inventory levels, which is welcome for potential buyers. However, high mortgage interest rates continue to affect the real estate market, with some homebuyers finding it more difficult to qualify for mortgages. ‘ says Cruikshank.
We’ll have to see what the Bank of Canada does in September. We hope to see fixed mortgage rates go down and bring some relief to buyers, especially first-time buyers. Any rate easing could see an increase in sales activity returning to the market during the fall months,” Cruikshank adds.
The average number of days a home is sold, which is always a good measure to watch, increased from 45 days in June to 47 days in July. Average days in the market is for the entire Okanagan region and the index will vary depending on the type of house and sub-area.