It’s the first time in months that the real estate market in the South Okanagan shows signs of normalizing, with residential real estate sales for the month of May suggesting future market activity is on a calmer path.
Lyndi Cruickshank, the president for the Association of Interior Realtors, said that from her perspective, seeing the market head in a calmer direction is a healthy place for it to be going.
“Whether we’re looking at how this is affecting someone that is looking at purchasing, or someone that’s looking at selling, it’s allowing people a little bit more time to make the decisions that they need to be able to make and more choices are coming on the market, ”she said.
The South Okanagan saw another increase for single-family homes, with the benchmark price reaching over $ 826,000 in May, up nearly 20 per cent year-over-year, according to statistics from the association.
“What we’re seeing is a slowing down of that incredibly paced, fast paced activity that we saw. So we’re still seeing a significant number of homes that are selling, we know that there’s still great demand from buyer pressure in the market. ”
With 98 sales last month, home inventory still sits low with a 22 per cent decrease.
Active listings are up by 6 percent in the area, and there’s hope that will continue to grow as construction development continues to see progress.
“We’ve talked a lot over the last few years about a true need to see more homes coming available in this area and it’s exciting to see that we have developers that are looking at new projects in the area that will certainly be bringing more homes on market. ”
The summer season brings in local and out of town buyers into the region, sales may change as interest rates hike.
“We’re continuing to see lots of activity, we know that people are needing to be really careful around how they’ve pricing their homes. Buyers are certainly a little more cautious right now in the decisions that they’re making. And I think that we will continue to see what we would call a more normalized market which again, I think is a really great place for all of us to be. ”
Buyers are appearing to take more time to purchase and the increased cost of living means there’s more consideration in purchasing.
“It’s the interest rates, but it’s also inflation as a whole. How we are living right now is different than it was a year ago, “Cruickshank said.” The costs that we have to consider in our day to day lives are going up. And certainly that’s going to impact somebody that is looking at investing into a new home and a mortgage payment. ”
“While nobody wants to see the interest rates going up, we knew it was eventually going to happen.”