Gradual downward trend continues

Latest statistics from Okanagan Mainline Real Estate Board show residential sales slowed in October

Anthony Bastiaanssen

Anthony Bastiaanssen

Okanagan residential sales slowed in October.

Statistics released by the Okanagan Mainline Real Estate Board (OMREB) show 779 sales for the month, compared to 884 in September, which is down 12 per cent from last month but a 19 per cent increase over October 2015.

“A number of factors suggest a gradual downturn, including reduced sales volume, lower average prices, and longer days on market as compared to previous months,” said Anthony Bastiaanssen, OMREB president.

However, Bastiaanssen points out that continued low product inventories will likely slow progression towards a market where available housing supply matches buyer demand.

“We are watching to see the effects of shifting market conditions compounded by recent government interventions like the additional 15 per cent property transfer tax for foreign buyers of Lower Mainland property announced by the B.C. government in August and recent federal government measures including adjustments to income testing rules for borrowers requiring mortgage insurance,” he said.

The average MLS residential price in October was $454,426.72 across the region spanning Peachland to Revelstoke, a 4.9 per cent decrease over September but still a 6.9 per cent increase over the same month last year.

Average days to sell across the region was 92 in October, up from 84 in September.

New listings were 884 in October, compared to 1,118 in September and 1,230 in August.

Turning to buyers of Okanagan properties, Bastiaanssen said that, year over year, most buyers are couples with or without children and empty nesters or retired who are primarily from within the Okanagan and either relocating, moving to a similar-type property, moving up or downsizing.

The largest number of buyers are from within the Okanagan at 52.3 per cent, followed by buyers from the Lower Mainland/Vancouver Island at 21.5 per cent and Alberta at 12.8 per cent.

Foreign buyers are 1.6 per cent of the buying population, down from 2.8 per cent in August.

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.

 

Vernon Morning Star

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