No Bounce Back For Real Estate
Home sales in the Okanagan continue to cool off.
The valley’s real estate board (OMREB) says the 459 sales in November were down 28% from the previous month and 24 percent lower than a year ago.
President Marv Beer says the interest rate hike and the BC government tabling the speculation tax are likely factors, even though this is typically a slow time of the year.
“Influencing market demand can be tricky and with two levels of government continuing to tinker independent of each other. Outcomes could quickly shift from balanced conditions that favour both buyers and sellers to a situation that could precipitate a market slide, which would benefit no one,” says Beer.
A much-needed supply of homes for sale was bolstered by a 20% increase in new listings, boosting inventory to 34% over November last year.
Average price stayed consistent with the previous month and this time last year, at just 2% and 3% respectively.
The average price in the Central Okanagan is $711, 761, up 4.8% from a year ago.
Average price in the North Okanagan is $507,581, up 7.9% from November 2017.
Average days on market, another key market indicator, rose to 91 in November as compared to 81 in October and 87 this time last year.
Contrary to public perception, foreign and out-of-province individuals continue to be a small percentage of those purchasing homes in the region at 1-3% of the buying population,” says Beer. “Buyers from Alberta continue to hold at about 11-12% and those from elsewhere in Canada at less than 1%. The largest buying group by far continues to be those who already live in the area at around 55-60% any given month.