After a record-breaking 2021, it’s only reasonable that the pace of BC home sales this year can’t match those numbers.
But something a little strange happened in the Okanagan market last month.
“We experienced something interesting in August – sales increased from July,” realtor Colin Krieg wrote in his Krieg Family Real Estate/ReMax Kelowna monthly newsletter. “It’s very unusual to see an August with higher sales.”
It’s also unusual at a time when Kamloops and the rest of British Columbia were on a downward trend in sales.
In August, sales in British Columbia totaled 5,645, down 1.2% from July and down 40.8% from 2021, according to a monthly update from the BC Real Estate Association. .
Kamloops sales fell to 187 units, down 7.8% from July and down 36.4% from August 2021.
While sales in the Okanagan were down 32.2% from a year ago, they were actually up 11.1% from July, totaling 671 sales.
As for prices, only the South Peace posted a year-over-year decline out of 11 regions in the BC Real Estate Association data report.
But comparing to July, B.C. as a whole and Kamloops saw their prices fall while the Okanagan went in the opposite direction.
The average price for all housing types in British Columbia fell 0.5% to $918,378 in August from July. The drop was most dramatic in Kamloops where the average price of $580,128 was 12% lower than in July.
In the Okanagan, the region-wide average price rose 3.1% to $775,967.
READ MORE: Home prices down in Kamloops but up in parts of the Okanagan
Krieg attributes the higher selling volume to the shock that faded following the Bank of Canada’s 1% rate hike in July.
“Don’t worry, the Bank of Canada announced another massive interest rate hike of 0.75% in September to shock the market again,” he wrote. “It’s too early to say what kind of impact this will have, but I expect September sales to decline again.”
In a video attached to his press release, Krieg says he doesn’t expect any real upward pressure on prices over the next two years.
“We just completed our 10-year cycle – or our boom,” he said. “I think it’s going to take a while before we get back there.”
He sees a drop in high-end sales, but low-end sellers will do “very well”.
READ MORE: You Can Still Sell Your Home In A Tough Kelowna Real Estate Market If The Price Is Right
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