Residential real estate sales for the month of October in the region saw an increase in inventory while sales held steady, reports the Association of Interior REALTORS® (the Association).” Within the Kamloops and District region, there were 144 residential unit sales recorded last month, down from the 166 recorded in September, with a decrease of 52% compared to October 2021.
The Benchmark Price, a better representation of value compared to the average or median price as it represents a dwelling of “typical attributes”, saw an increase across all home categories in the Kamloops and District area compared to October 2021, with the greatest increase occurring within the townhome category for another consecutive month with a 21.4% increase coming in at $559,400.
There were 320 new listings added in October in the Kamloops and District region, which was a 4.5% downslide compared to the same time last year. Overall inventory, or active listings, saw a hefty 132.5% increase compared to October 2021, coming in at 2,025.
I anticipated a reduction in average sales price across all market segments in Kamloops from September to October, but that hasn't happened yet. This means we still have some pent-up buyer demand. That said, there are a number of price reductions happening on a regular basis as the listing inventory starts to realize that they came on the market too high.
With more inventory coming on the market, buyers have more selection and coupled with increased borrowing costs, buyers are starting to negotiate hard on their transactions.
Gone are the days of overpaying for a listing because you have no other choice. Some sellers are learning the hard way that they need to be listing their properties at a more realistic number, so they don't spend the next few months chasing the price down. November and December sales stats are going to be very interesting as I anticipate a major slowdown as pre-approved mortgages start to wind down and people are left with higher-rate mortgages going forward.
These higher-rate mortgages will start to push buyers into less expensive properties, which should drive sales prices down....the key word is 'should.' I suspect the first market to see a reduction in Benchmark sales price will be the resort community of Sun Peaks.
Posted by Andrew Karpiak on