The Kootenay Real Estate Board (KREB) has released year-to-date statistics which have shown Kootenay real estate to still be a ‘Buyer’s Market’.

“The year to date numbers are improving slightly each month as consumers are slowly entering back into the Kootenay Real estate Markets,” says KREB president Andrew Smith in a release. “While the real estate markets are still showing unit sales declines, the general extent of those declines is lessening as we go through each month of 2009. While still classed as a buyer’s market due to the current high MLS Listing Inventory and low number of sales, the trend is starting to indicate we are moving towards a more balanced real estate market.”

Locally, sales, but not prices, have dipped in 2009. Statistics released by the board show year-to-date numbers up to June 2009. In Nakusp, for all MLS listings, there have been five sales this year at an average price of $290,000, a drop of 10 from 15 in 2008 when the average price was $265,500. In Rural Nakusp, there is still a drop of sales, from 18 in 2008 to seven thus far in 2009, but the average price has dropped from $216,000 to just over $210,500.

The case in New Denver is looking as it did in 2008. To-date this year, there have been two sales at an average price of $379,500 and in 2008, there had also only been two sales up until the end of June, but the average price was $216,000. In Silverton there have been no MLS sales to-date in 2009, and in 2008 there was only one sale at a price of $310,000.

Managing broker for Selkirk Realty in Nakusp, Kelly Roberts, says 2007 saw a large Albertan market with over 70 per cent of sales in the area, a number which reduced in 2008 to under 20 per cent and now in 2009 is even less so far. “Right now the market is still slow,” she says. “There are quite a few people looking, however, not many buyers at this point.”

She continues buyers are being a lot more cautious than they previously have been. “It seems like the market is picking up somewhat both in the Okanagan and down at the coast, so hopefully it will circle to us as it usually does, and our area will see an increase in sales.”

Residential prices are starting to come down, she adds, and will probably decrease more before the end of 2009.

The release from KREB indicates why it’s important to have good real estate sales as there is a strong economic impact within the province when sales are up. “A study by Altus Group Economic Consulting prepared for the Canadian Real Estate Association indicates secondary spending from B.C. residential MLS sales contributed more than $5.3 billion annually to the provincial economy between 2006 and 2008,” states the release. “In addition, a total of 44,000 direct and indirect jobs were available as a result of MLS sales. This accounts for nearly one in 50 jobs within B.C.’s economy, the largest impact of any province in Canada.”

Across the Kootenays, the board indicates total MLS unit sales down 39 per cent compared to this time last year and MLS listings are also down 14 per cent from figures in 2008.

“Local buyers are aiding the start to the comeback of our local real estate markets,” says Smith. “With mortgage interest rates remaining at historic low levels, and MLS property listing inventory high, buyers have the benefit of property selection and favourable mortgage financing. The combination of those two factors is creating interest amongst home buyers that has started to shift our real estate markets back towards positive ground.”