Interest rates subdued real estate market throughout the Okanagan, realtors association says

It’s been a roller-coaster year for real estate throughout the Okanagan.

After starting the year at an all-time high, residential real estate sales softened at the conclusion of 2022.

A total of 572 residential unit sales were recorded across the region in December 2022, marking a 42.8 per cent decrease in sales compared to December 2021.

“After a very strong first half of 2022, we began to see market activity moderate amid consistently rising interest rates imposed by the Bank of Canada,”  Association of Interior Realtors President Lyndi Cruickshank said. “Although inventory levels remain tight, the high-interest rates will continue to subdue market activity in the coming months.”

New residential listings saw a decline of 20.7 per cent within the region compared to December 2021 with 651 new listings recorded. However, the overall inventory saw a 93.5 per cent spike with 6,001 units currently on the market at the close of December 2022.

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Cruickshank said in the year ahead they anticipate inventory will continue to accumulate, as compared to recent years, with all signs pointing to more balanced conditions with buyers and sellers benefitting equally.

The benchmark price for single-family homes in the Central Okanagan, North Okanagan, South Okanagan and Shuswap/Revelstoke regions all saw moderate decreases in year-over-year comparisons.

5:51 Canada’s 2023 real estate outlook

In the Central Okanagan, the December benchmark price for a single-family home went down 3.5 per cent year over year, to $1,002,400 and, on average, it took 64 days for a house to sell, which is a 65 per cent rise from a year earlier.

In the North Okanagan, the benchmark price for a single-family home is $717,100, which is a drop of 0.2 per cent from a year earlier and it’s taking 65 days to sell.

Finally, in the South Okanagan, the benchmark price of a single-family home was $689,500 in December, which is a fall of 4.2 per cent from a year earlier. The number of days it takes to sell a home in that market has also risen to 71.

The benchmark price in all other housing categories saw minor to moderate increases compared to December 2021, with the highest percentage increase in the townhouse category for the North Okanagan up 13.8 per cent compared to December 2021, coming in at $574,400.