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Coming on the heels of huge numbers for home sales in the Okanagan last year, the first month of 2015 seems to have cooled off considerably.

The Okanagan Mainline Real Estate Board reports that January sales activity declined 15 per cent compared to the same month in 2014.

“While demand typically slows in January, Okanagan-Shuswap home sales declined more than expected after the steady upward trend and solid end to 2014,” says Darcy Griffiths, OMREB President.

“The additional slowdown can be attributed to the record snow falls blanketing our board area as the new year began, and the downturn in the Alberta oil patch negatively impacting consumer confidence.”

She believes that Albertans may be reconsidering any second home purchases at this time, whether used for investment, recreation or retirement, and instead are waiting to see what happens as the price of crude oil hovers around $50.

“However, we remain cautiously optimistic and are hopeful the lower lending rates will provide some incentive and boost buyer activity as 2015 unfolds.”

The three real estate board areas stretching from Peachland to Revelstoke each saw a decline in single residential sales of at least 16 per cent, but each location tends to vary in sales figures among all property types by location and month.

“The Central Okanagan took the softest hit in January with total residential sales dipping five per cent and single residential declining 16 per cent, while apartment sales improved by 12 per cent compared to 2014,” Griffiths reports. 

“The North Okanagan saw a 12 per cent drop in total residential sales and single family residential sales were down 18 per cent compared to this time last year.  In the Shuswap, total residential sales dropped 15 per cent while single family residential sales declined by 42 per cent compared to January 2014.”

However, Griffiths also says the price of single-family homes remains steady and strong in most areas, with modest gains seen in areas where supply has tightened.

This is further highlighted by the January report, which states the selection of single-family homes has been reduced by an ongoing decline in inventory and new listings – especially for those homes priced below $500,000. That shortage of entry-level homes has pushed buyers into more expensive purchases, or into the condo and townhouse market where they can still find value in that price range.