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Benchmark price of a Central Okanagan home falls below $1 million

FILE. A house for sale sign . THE CANADIAN PRESS/Richard Buchan

The Okanagan real estate market is showing signs of “normalizing” according to industry officials,  in a report indicating the benchmark price for a single-family home in the Kelowna, B.C., area has fallen below $1 million.

The Association of Interior Realtors is reporting that the greater Kelowna area saw a 14.1-per cent drop in the price of a single-family home year over year, meaning the benchmark price this February was $971,300.

For a condo, the benchmark price in the Kelowna area was down  in February year over year by 7.8 per cent, to $496,300, and townhouses saw the benchmark price drop 4.8 per cent to $742,200

A similar pricing trend could be seen in all Okanagan markets, though it was most pronounced in the Central Okanagan.

Sales were also down, with 46.8 per cent fewer single-family homes trading hands this February compared to last, and 55 per cent fewer condo sales and 60 per cent fewer townhouse sales.

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All of these changes are reflective of an ongoing pattern but realtors say that sales activity in February has improved when compared to just a month earlier.

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A total of 831 residential unit sales were recorded across the association region in February, representing a 46.1-per cent decrease in sales compared to the hypermarket of February 2022. yet up compared to January’s 555 unit sales.

A total of 831 residential unit sales were recorded across the Association region in February representing a 46.1 per cent decrease in sales compared to the hypermarket of February 2022. yet up compared to January’s 555 unit sales. Courtesy: Association of Interior Realtors

“The overstimulated boom of the last few years, along with multiple mortgage rate hikes made many buyers and sellers hesitant to make any moves,” Association of Interior Realtors president Lyndi Cruickshank said.

“Now that the dust is starting to settle, these buyers and sellers can move forward in a transitionally healthier real estate market more reminiscent of pre-pandemic conditions.”

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The average number of days to sell a home, always a good barometer to watch, decreased to 76 days compared to last month’s 86 days.

It’s important to note that the average of days on market is for the entire Okanagan region and that the indicator will vary depending on home type and sub-region.

Click to play video: 'Okanagan housing market year in review'
Okanagan housing market year in review

 

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