Okanagan real estate market has hit the 'summer slowdown'

Real estate market slows

The traditional "summer slowdown" has hit the residential real estate market in the Okanagan.

But according to June figures released by the Association of Interior Realtors, market activity does continue to move along on an average pace.

In June, 1,656 units were sold across the Okanagan region, a 10.7 per cent increase over the same month a year ago and down just six units when compared with May figures.

And, while new residential listings did decrease for a second straight month compared with figures from 2022, the 3,045 new listings recorded is up from the 2,910 listings coming on the market in May.

The total inventory across the region is also up compared to a year ago with 7,347 total units for an increase of 13.8 per cent. The South Okanagan led the way with a 32.3 per cent increase compared to the same month in 2022.

"After a long supply drought, it is encouraging to see that inventory has slowly been creeping up the last few months," said association president Chelsea Mann.

"However, there is still a segment of the market that is not available to meet certain buyer's needs due to the high cost of lending, in particular affordable housing. Demand for affordable housing is at an all-time high."

Year-over-year, the benchmark price for single family homes decreased for a second straight month with the largest decrease in the South Okanagan, down 3.2 per cent to $783,600.

The benchmark price for townhouses and condos increased in the Central and North Okanagan regions and the Shuswap but declined in the South Okanagan.

The benchmark price for a home in the Central Okanagan is now at $1,063,800, down 3.1 per cent from the month prior.

"Competitively priced homes and those in the mid-range price points are moving at a more even pace
than those that are priced at the higher end,” says Mann.

"The costs of carrying mortgages could impact sales activity as interest rate sensitive buyers can no longer afford what they could have a year or so ago.”

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