There are some signs that the hot Okanagan real estate market is slowing down. Statistics from the Okanagan Mainline Real Estate Board, which covers the area from Revelstoke to Peachland show the number of sales were down again in September compared to the same month last year. The number of sales was also down in August.
However, that doesn’t mean average home prices in the central Okanagan are dropping and those looking for investment are helping to drive the market.
The real estate board said the fact that demand for homes is outstripping supply is probably keeping home prices up.
“It’s a bit of a catch 22. High prices contribute to a lack of inventory because potential sellers are concerned about whether or not they can afford to purchase a different home, yet fewer homes on offer means that there is more competition for the homes that are available to buy,” said board president Tanis Read.
The average price of a central Okanagan home was $710,578 in September, up 14 per cent from the same month last year.
That’s a rise after slightly lower average home prices over the summer. In August, the average sale price of a central Okanagan home was $678,608. In July that number was $692,838.
Meanwhile, across the region, investment continues to help drive the market. The real estate board said 20 per cent of those buying in August were doing so “for revenue or investment purposes.”
Seventeen per cent of buyers were coming from the Lower Mainland while 13 per cent hailed from Alberta. Fifty-seven per cent of residents were Okanagan residents.