Kootenay Residential Real Estate Market Activity Cooled Through September
NELSON, B.C. – October 5 th , 2023. Residential real estate market sales dipped in September as high interest rates continued to stifle market activity, reports the Association of Interior REALTORS® (the Association).
A total of 977 residential unit sales were recorded across the Association region in September marking a significant dip from the previous month’s 1,265 units sold and representing a 13.3% decrease in sales compared to September 2022.
New residential listings increased 14.6% compared to September 2022 with 2,384 new listings recorded. The total number of active listings saw a healthy increase of 16.7% of total inventory compared to September last year with 7,865 recorded across the Association region. The highest percentage increase in active listings continues to be dominated in the South Okanagan with a total increase of 35.3% compared to the same month last year.
“Typically the fall market starts to pick up momentum in September, however sales activity for the month suggests that the weight of high interest rates continues to bog down both buyers and sellers,” says the Association of Interior REALTORS® President Chelsea Mann, adding that “many buyers and sellers have seemingly hit the brakes on their real estate efforts and have taken a wait-and-see approach hoping for the cost of borrowing to lighten.”
“The market slowdown does not however mean that there aren’t still deals being made. Homes that are priced appropriately to reflect current market conditions are still being sold at an even pace,” says Mann.
In the Kootenay and Boundary region, unit sales saw a 22.1% decrease compared to sales activity in September 2022 with 204 sales recorded in September 2023; down from August 2023’s 300 units sold. There were 344 new listings recorded in the Kootenay and Boundary region in September marking a 11.8% decrease compared to the same month last year and a decrease from August 2023’s 412 new listings. The overall active listings in the Kootenay region saw a moderate 9.7% increase compared to September 2022 with 1,470 listings overall.
“We are seeing a softening in active listings within the Kootenay and Boundary region, suggesting that sellers are entering the market a little hesitantly,” says Mann, adding that “this could also be a by-product of the interest rate squeeze where sellers are holding off on selling in the hope of a rate hike relief before purchasing a new property.”
The benchmark price, a better representation of value compared to the average or median price as it represents a dwelling of “typical attributes”, saw percentage increases in all housing categories in the Kootenay region compared to September 2022. For another consecutive month, the greatest increase was seen in the townhome category coming in at $506,200, marking a 11.6% increase. The benchmark price for single-family homes and condominiums saw increases of 5.4% and 1.5% respectively, in year-over-year comparisons.
Given the high stakes on such a significant financial transaction, home sellers and buyers can benefit from the knowledge and skills of a practiced REALTOR®. Contact your local REALTOR® to find out more about the real estate market and how they can help you achieve your real estate goals.