Published On: Monday, 11 December 2017
Cooling Sales Temper Okanagan Residential Prices
KELOWNA – Residential sales posted to the Multiple Listing Service (MLS®) for the Okanagan region of Peachland to Revelstoke totaled 605 in November, falling 18 per cent from last month’s 736 but up 6 per cent from this time last year, reports the Okanagan Mainline Real Estate Board (OMREB).
OMREB President Tanis Read says buying and selling have slowed in the region, despite a strengthening economy, lower unemployment, and near record immigration. Listings are also remaining on the market longer. Read speculates tightening regulation around mortgages, tenancy, and representation may also have an impact.
In November, 769 new properties were listed, down 14 per cent from October’s 898 new listings, and approximately on par with the 705 new listings that came to market in November 2016. Typical for the fall months, average number of days to sell has increased to 132 from October’s 83 but is significantly higher than the 97 days on average for the same period last year.
Read notes that the average price of $501,335 for November has moderated slightly with tightening supply and less-buoyant sales. Average price in November was down 5 per cent from October, but up 7 per cent over this time last year.
More housing supply is under construction but is not yet impacting the market. The region is still in a seller’s market, where there are fewer homes for sale to a larger pool of buyers. This is attractive for those selling but poses challenges for those same sellers when they seek a new home in the same market at an affordable price.
OMREB’s monthly survey of homebuyers reflects both a tightening market and increased regulation of morgages. There were fewer first time home buyers at 15% of the market, compared to a historical average of 20%.
The number of move-up buyers has decreased. Over the past seven years, move-up buyers made up 22 per cent of purchases but now only comprise 14 per cent of the purchasing market.
For detailed statistics specific to each of the three regions served by OMREB, visit www.omreb.com.