Residential real estate sales in the Okanagan slipped in July, so much so that the local Association of Realtors is reporting pre-pandemic levels in the region.
Nearly 1,200 residential unit sales were completed in the local area last month – a 33.3 per cent drop compared to units sold in July last year.
“The market was high in March and we’ve seen a correction since then,” said Royal LePage Realtor Steve Wright.
Last year we were selling 75 percent of our single family and this year we are selling 25 percent of our single family. So it seems like the market correction and single family homes are doing the biggest correction right now.
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A decline in sales last month may lead to a decrease in the asking price. The average number of days it took to sell a home in the Okanagan rose slightly to 47 days in July, up from 45 days in June. It’s important to note that the average number of days on the market can vary by home type and subregion.
Wright says now is a good time for potential buyers to get serious. “Typically, it takes a seller 4 to 6 months of denial to know they have to drop their price. Meanwhile, the buyer knows within 4 to 6 minutes,” Wright explained.
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“So yes, we’re seeing a lot of price correction for people who want to sell or are interested in selling, but people are still…fishing for suckers.”
Although home sales in the region slowed to pre-pandemic activity in July, Wright said there are a few hot spots in the South Okanagan that are attracting attention.
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“I’ve done a lot of sales in the Osoyoos area this year and prices are about the same, maybe a little bit, but about the same as Kelowna. Oliver is probably a little expensive. Well Falls and Penticton follow but not by much,” explained Wright.
According to Wright, one trend you can see in Kelowna is the growth of high-rises in the city’s downtown.
“It’s going to be interesting to see them release those, you know, like the existing ones are 85, 90 percent bought,” Wright said. “One Water, Ella and some of these downtown…so we’ll be excited to see how many people come up when those are released.
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In July, the average price of a single-family home in the Central Okanagan was $1,060,400 – a 9.4 per cent increase from the same period last year, while the average townhouse is $783,500 and a condo/apartment is $522,100.
There are currently 7,698 active listings with the Local Association of Realtors, including the Okanagan, Shuswap/Revelstock, South Peace River area and Kootenays, a 56.8 percent jump from July 2021.