Published On: Wednesday, 16 May 2018

Spring Residential Real Estate Market Doesn’t Reach Last Year’s Heights

Spring Residential Real Estate Market Doesn’t Reach Last Year’s Heights

OKANAGAN - Residential sales for the region of Peachland to Revelstoke tallied 746, 19 per cent more than March, but 9 per cent down from this time last year, reports the Okanagan Mainline Real Estate Board (OMREB).

“Despite the typical spring upswing, this is the second month in a row where sales are fewer than last year’s tally, suggesting the market is continuing to normalize,” comments OMREB President Marv Beer, cautioning that more data points are needed to constitute an actual trend.

“Markets are cyclical and what we hope for are smaller peaks and valleys, but it’s difficult to know if that’s what we will get, given the volume of tinkering occurring in the form of Federal mortgage tightening rules and higher interest rates and now a proposed Provincial speculation tax,” he says.

New listings were 1519 compared to March’s 1393 and last year’s 1378. “This is more new listings than we’ve seen for some time, likely resulting from two possible sources: more housing supply coming on-stream as developers complete construction and a factor may also be fears related to the government’s proposed speculation tax, which, for some, could add a substantial and unexpected tax burden,” Beer comments.

Latest Buyer Survey results show three types of buyers vying for the largest group: first timers; those upgrading; and those relocating/moving to a similar-type property, all at 19 per cent of total buyers respectively.

Two-parent families with children topped the buyer list at 28 per cent, with childless couples close on the heels at 27 per cent. Buyers from within the OMREB board region remained the majority at 55 per cent, followed by those from the Lower Mainland/Vancouver Island at 19 per cent and other areas of BC at 11 per cent. Foreign buyers were 3 per cent.

April’s average price was $517,149 consistent with March, but up 8 per cent from this time last year. Days on market averaged 65, fewer than both March’s 78 and last year’s 75. A shifting market, complicated by so many external influences, can make for tricky conditions.

Buyers and sellers alike can benefit from engaging a local real estate professional who has the knowledge and skill to analyze and accurately interpret market conditions and resulting implications.

OMREB serves three diverse markets within the region: the Central Okanagan Zone (Peachland to Lake Country), the North Zone (Predator Ridge to Enderby) and the Shuswap- Revelstoke Zone (Salmon Arm to Revelstoke). For detailed statistics specific to each of the three regions served by OMREB, visit www.omreb.com.