For the first time in nearly four years, the benchmark price of a single-family home in the Central Okanagan has dropped for a second straight month.
The Association of Interior Realtors released its June statistics on Wednesday, and they showed the single-family benchmark price fell to $1,112,400 last month. That represented a 1.5% drop after a 0.1% decrease in May. The last time the Central Okanagan single-family price fell in back-to-back months was in October and November of 2018.
Residential real estate sales also slowed across the entire AIR region last month, a 30.3% decrease compared to June 2021 that the association blamed on Bank of Canada’s recent mortgage rate increases.
“It’s not unusual that mortgage rates are impacting market activity, specifically in the higher-priced markets,” AIR president Lyndi Cruickshank said in a press release. “This is what typically happens when interest rates move upward. It makes buying a home more costly, making what a purchaser can afford more limited.
“We are seeing this effect, particularly in what is typically a higher-priced home type. However, this shift is creating a welcome opportunity for buyers to slow down in their decision making, which is a welcome relief for many.”
An increase in listings also likely played a role in the single-family home price decrease in the Central Okanagan, as there were 1,046 homes on the market last month compared to just 267 in January.
“Our inventory is gradually picking up and supply is growing,” Cruickshank said. “This is benefiting both buyers and people looking to sell and move. As we don’t expect any relief in terms of interest rates in the coming days, one will have to anticipate the market while pricing properties correctly.”
There has been massive fluctuation in the Central Okanagan townhome benchmark price over the last few months. It increased 10% from April to May but then dropped 8% from May to June, settling in at $763,800 last month.
And one month after topping the $800,000 mark for the first time, the North Okanagan benchmark price for a single-family home dipped back below that line in June, checking in at $798,500.