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Real estate market sales, prices drop across region in summer slowdown

Timothy Schafer Local Journalism Initiative Reporter
By Timothy Schafer Local Journalism Initiative Reporter
July 20th, 2023

The residential real estate sales market in the Kootenay-Boundary region has dipped in June, according to recently released statistics.

The Association of Interior Realtors is reporting that sales across the region dropped in June compared to May — from 324 to 303 units sold — as well as being down 7.9 per cent compared to June of 2022.

New listings were also down by 3.4 per cent compared to last year (to 569), but were slightly higher than May of this year (569).

The figures follow a typical summer slowdown for real estate sales, but they are a little deeper this year.

“Typically, the Kootenay region sees a spike in activity in May, which is usually followed by a slight lull, and that is where we are now,” said Association of Interior Realtors president Chelsea Mann in a press release.

“(T)his is consistent with pre-pandemic seasonal trends for the area and suggest that the region could be closer to recovery than other real estate markets in the province.”

The benchmark price for single-family homes in the Kootenay-Boundary fell by 0.9 per cent to $521,800, while it is taking a lot longer to sell homes, with a 24 per cent rise in the time frame to 57 days.

The overall active listings in the Kootenay region saw a 16.7 per cent increase compared to June 2022 with 1,453 listings overall.

Mann said a “demand for affordable housing is at an all-time high” in the Kootenay region.

Cost cutting

The benchmark price for single-family homes decreased in the Kootenay region by 0.9 per cent compared to last year, with condominiums also dropping by 0.1 per cent.

The benchmark price is a representation of value compared to the average or median price as it represents a dwelling of “typical attributes.

“Competitively priced homes and those in the mid-range price points are moving at a more even pace than those that are priced at the higher end,” said Mann.

“(T)he costs of carrying mortgages could impact sales activity as interest rate sensitive buyers can no longer afford what they could have a year or so ago.”

Across the region

A total of 1,656 residential unit sales were recorded across the Association region in June, representing a 10.7 per cent increase in sales compared to the same month last year, but down compared to May’s 1,662 unit sales.

New residential listings saw a decrease for another consecutive month, down 7.1 per cent compared to June 2022 with 3,045 new listings recorded, yet up from May 2023’s 2,910 new listings.

The total number of active listings saw an increase of 13.8 per cent of total inventory compared to June last year with 7,347 total residential listings recorded across the Association region.

The highest percentage increase in active listings was recorded in the South Okanagan with a total increase of 32.3 per cent compared to the same month last year.

“After a long supply drought, it is encouraging to see that inventory has slowly been creeping up the last few months. However, there is still a segment of the market that is not available to meet certain buyer’s needs due to the high cost of lending, in particular affordable housing,” said Mann in a press release.

Source: Association of Interior Realtors

Categories: General


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