Published On: Thursday, 07 September 2017
Okanagan Housing Demand Continues to Outpace Supply
KELOWNA - 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,” adds 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.
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.