Lack of homes on market ‘taking toll on buyers’

Demand continues to outpace supply when it comes to residential real estate in the Okanagan and other parts of the B.C. Interior.

A total of 1,516 residential unit sales were recorded across the Association of Interior Realtors service region in February, marking a 15 per cent decrease compared to a record high number of units sold in February 2021.

New residential listings were down 12 per cent with 1,850 new listings recorded. The overall active listings showed a 19 per cent decrease in year-over-year comparisons.

“The persistent lack of new listings coming onto market is far from adequate to meet the demand of buyer’s locally and those coming from other markets,” said association president Kim Heizmann, a Vernon realtor. “We are seeing the mismatch of inventory versus demand taking a toll on buyers as they show signs of fatigue in having to compete in a seller’s market where lack of supply is putting upward pressure on pricing, and further on affordability.”

(Image credit: Association of Interior Realtors)

The benchmark price for a single family home in the North Okanagan is $743,300, up 30 per cent from a year ago. That same type of home in the Central Okanagan is valued at over one million dollars ($1,094,000), an increase of 37 per cent. The other categories for townhomes and condos are listed below.

It’s taking an average of between 27 and 29 days to sell a home in the North and Central Okanagan.

(Image credit: Association of Interior Realtors)

President Heizmann said the lack of housing supply continues to be the key driver of market performance with homebuyers and sellers having to navigate through a high demand and low supply situation.

“Instead of looking for quick fixes to dampen housing demand, government policies should focus on measures that could bring more housing to the market, as outlined in BCREA’s recent white paper – A Better Way Home. Providing more options for buyers can help soften competitive market conditions and provide much needed inventory after months of supply drought,” Heizmann commented.

The Association of Interior Realtors represents about 2,500 realtors in communities across the B.C.’s Interior including the Okanagan, Kamloops, Kootenay and District, as well as the South Peace River region.