House prices still rising in Okanagan, even as sales slow

The benchmark prices for all types of homes in the Okanagan keep going up, with condos in Vernon leading the surge.

The Association of Interior Realtors said 18 of those units sold in July in the North Okanagan, with a benchmark price of $325,900, up 29.2 per cent compared to the same month in 2021.

The North Okanagan’s benchmark price for single family homes was up 12.3 percent to $774,400, while in Kelowna they rose 9.4 per cent to $1,060,400. The benchmark price represents a typical property within each market.

Image credit: Association of Interior Realtors

As far as sales activity, July was a slow month with residential sales in the Central Okanagan down 47 per cent from ago with 298 transactions. The North Okanagan saw 158 homes change hands, down 14 per cent.

“Seasonally, it is not out of the ordinary to see a dip in sales in the summer, although real estate market activity across most regions in the province was below average last month, not just within the interior,” said the Association of Interior Realtors president, Lyndi Cruickshank.

Cruickshank said a number of factors are involved.

“The interest rate hikes, recommencement of travel and the school break could all be reasons consumers pushed pause on their real estate plans as they focused on enjoying the hot summer days.”

New residential listings saw a welcomed upswing of eight per cent within the region compared to the same period last year with 2,488 new listings recorded.

“We are seeing inventory starting to accumulate, slowly moving upward to healthier levels of inventory, which is a welcomed relief for prospective buyers,” Crickshank remarked. “However, the higher mortgage interest rates are still impacting the real estate market with some home buyers finding it more difficult to qualify for mortgages.

Cruickshank said realtors will be watching what the Bank of Canada does in September.

“Hopefully, we will see fixed mortgage rates come down and bring some relief for buyers, particularly first-time buyers. Any interest rate relief may see an increase in sales activity returning to the market over the fall months.”

The average number of days to sell a home in the association region increased from 45 days in June to 47 days in July.

Image credit: Association of Interior Realtors