Real estate sales continue to go through a cooling trend in the Okanagan.
Sales across the region from Revelstoke to Peachland in August were down 5 percent from July, and off by 20 percent from a year ago, with 709 sales.
Okanagan Mainline Real Estate Board president Marv Beer (pictured) says the cooling trend has been going on for six months.
He says the decreased demand is due to natural market shifts, but also a result of government moves to tougher mortgage rules, higher interest rates, and the threat of a possible speculation tax.
“Unfortunately, government intervention has also had the effect of making homes less affordable, as the new mortgage rules and higher interest rates mean that the buyer’s dollar doesn’t go as far as it used to,” says Beer. “Keeping in mind the millennial generation, a group that comprises many of today’s first-home buyers, housing affordability could be better resolved through measures that help deliver the type of housing that buyers want and need to market more quickly and efficiently rather than penalizing
those hoping to buy.”
The average selling price for a North Okanagan home in August was $508,973, up 8 percent over a year ago, with homes taking on average 60 days to sell.
The average price in August for the OMREB region was $511,916, an 8% drop from the previous month, but 5% higher than this time last year.