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Low inventory affecting Okanagan housing market

Click to play video: 'Kelowna home buyers facing higher prices because of limited listings'
Kelowna home buyers facing higher prices because of limited listings
Watch Above: Something unusual happened in the Central Okanagan's residential real estate market last month: the number of sales dropped compared to the same period last year. But those in the industry say it's not a sign of sluggish demand. As Megan Turcato reports, it's part of a trend in which buyers find themselves facing higher prices and more competition to buy. – Mar 6, 2017

The Okanagan Mainline Real Estate Board (OMREB) has released its numbers for February.

The board represents the region from Revelstoke to Peachland.

Three hundred and sixty seven homes were sold in the Central Okanagan last month, an 11.35 per cent decrease from February of 2016.

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The average cost of a home was 15.53 percent higher, at $638,604.

The OMREB concludes the price increase is in reaction to supply and demand.

The inventory of available homes was about 18 per cent lower last month than it was in February of last year.

“Given the high number of building permits that were taken out over the course of this past year, we’re hopeful that new properties will begin to come onto the market, which should positively impact housing affordability,” OMRB President Anthony Bastiaanssen said.

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