KELOWNA, B.C. – September 5, 2017.
Residential sales in the Okanagan region of Peachland to Revelstoke cooled slightly in August to 882,
an 8% drop from July sales of 961 posted to the Multiple Listing Service (MLS®) and 14% fewer sales
than August of last year reports the Okanagan Mainline Real Estate Board (OMREB).
“Conditions still favour the seller, and will likely continue to do so until inventory grows or demand
lessens,” says OMREB President Tanis Read, adding, “While August is typically a slower month in terms
of sales volume, this imbalance between demand and supply is propping home prices in the Okanagan
and may lead to a more sustained drop in home sales if supply can’t catch up.”
Average price in August, at $489,130, was just 3% lower than July, and 5% higher than August of last
year. New listings stayed relatively consistent with the previous month, while days on market rose
slightly to 70 from 63 in July, but lower than 85 days this time last year.
Demand is likely to continue to be fueled by strong economic conditions and population growth, driving
consumer confidence and housing demand.
“We know there was a high volume of building permits taken out in 2016 and as construction on new
builds is completed, supply will hopefully start to catch up to demand, which will, in turn, have a positive
effect on affordability,” comments Read.
“In these conditions, a real estate professional can enhance the buyer’s ability to stay on top of scarce
new listings and aid in writing offers that will attract sellers’ attention,” says Read. “Sellers can benefit
from the in-depth analysis that goes into pricing a home to suit the conditions and effective
management of high-pressure, multiple offer situations. Both buyers and sellers can be advantaged by
engaging a REALTOR® who is knowledgeable about the local market to act as a trusted advisor
throughout a complex, high stakes transaction process.”
Turning to buyers of homes in the region served by OMREB, those relocated and/or moving to a similar
property type topped the list at 19% of home buyers, followed by first time buyers and those upgrading,
both at about 17% of buyers of properties that closed in July, according to an OMREB survey. Once
again, two-parent families with children were the largest buying group at 29%, closely followed by
couples without children at 26%. Buyer origins continue to consistently track, with the vast majority, at
56%, from within the region, followed by 17% from the Lower Mainland/Vancouver Island and 11% from
Alberta. Low percentages of buyers from elsewhere in Canada and outside Canada made up the balance.
“While millennials are now reaching ages where they will start to form their own households, it’s
interesting, yet perhaps not surprising, to note that we are seeing more parents and even grandparents
participating in home purchases for their children/grandchildren,” says Read.