Kootenay Residential Real Estate Market Inventory Showing Healthy Uptick
NELSON, B.C. – August 5 th , 2022. Residential real estate sales for the month of July in the region slid down to pre-pandemic activity, reports the Association of Interior REALTORS® (the Association).
A total of 1,196 residential unit sales were recorded across the Association region, marking a 33.3% decrease compared to the number of units sold during the hot market of July 2021.
“Seasonally, it is not out of the ordinary to see a dip in sales in the summer, although real estate market activity across most regions in the province was below average last month, not just within the interior,” says the Association of Interior REALTORS® President Lyndi Cruickshank, adding “a number of factors, or even a combination of factors such as the interest rate hikes, recommencement of travel and the school break could all be reasons consumers pushed pause on their real estate plans as they focused on enjoying the hot summer days.”
New residential listings saw a welcomed upswing of 8.1% within the region compared to the same period last year with 2,488 new listings recorded. The overall active listings also saw a healthy injection with an increase of 56.8% compared to July 2021 totalling 7,698 listings currently on market.
“We are seeing inventory starting to accumulate, slowly moving upward to healthier levels of inventory, which is a welcomed relief for prospective buyers. However, the higher mortgage interest rates are still impacting the real estate market with some home buyers finding it more difficult to qualify for mortgages,” notes Cruickshank.
“We will have to see what the Bank of Canada does come September. Hopefully, we will see fixed mortgage rates come down and bring some relief for buyers, particularly first-time buyers. Any interest rate relief may see an increase in sales activity returning to the market over the fall months,” adds Cruickshank.
In the Kootenay region, unit sales came in 18.7% lower compared to July 2021 with 274 units sold in July 2022. The Benchmark price, a better representation of value compared to the average or medium price as it represents a dwelling of “typical attributes”, all saw double-digit increases across all home categories in the Kootenay compared to the same month last year, with the greatest increase occurring within the condominium category with a 51.8% increase.
“The Kootenay region is one of the most affordable regions in the province currently. While unit sales numbers have dropped below the seasonally adjusted levels, unlike other regions in the province, the numbers indicate continued demand for residential homes in the region,” says Cruickshank.
There were 466 new listings recorded in the Kootenay and Boundary region in July 2022 marking an increase of 0.9% compared to July 2021. The overall active listings in the Kootenay and Boundary region jumped 14.7% with 1,319 listings overall.
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The Association of Interior REALTORS® is a member-based professional organization serving approximately 2,500 REALTORS® who live and work in communities across the interior of British Columbia including the Okanagan Valley, Kamloops and Kootenay regions, as well as the South Peace River region.
The Association of Interior REALTORS® was formed on January 1, 2021 through the amalgamation of the Okanagan Mainline Real Estate Board and the South Okanagan Real Estate Board. The Association has since also amalgamated with the Kamloops & District Real Estate Association and the Kootenay Association of REALTORS®.
The MLS® Home Price Index (HPI) is the most advanced and accurate tool to gauge home price levels and trends by using benchmark pricing rather than median or average. It consists of software tools configured to provide time-related indices on residential markets of participating real estate boards in Canada. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA (REALTOR®/ REALTORS®).
For more information, please contact:
Association statistical information: Email [email protected]
Province-wide statistical information:
BCREA Chief Economist, Brendon Ogmundson, [email protected]
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA (REALTOR®/ REALTORS®)