High interest rates impacting summer home sales

Aug 4, 2023 | 2:00 PM

Summer is normally a slow time in the real estate industry, and that trend is showing no signs of change this year.

The Association of Interior Realtors (AIR) says home sales cooled down in July.

A total of 1,337 residential unit sales were recorded across the association region during the month, representing a 9.5 per cent increase in sales compared to July 2022, but down from June’s 1,656 units sold.

The North Okanagan saw 153 residential units sold in July, which was a decrease of 2.5 per cent from July 2022.

The Central Okanagan saw a surge, with 408 units sold, up 37.4 per cent from a year ago.

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The benchmark price for a single family home in the Greater Vernon area was $778,300, which was 0.5 per cent less than in July 2022.

The benchmark price for the same type of home in the Kelowna area was up 0.9 per cent, to $1,063,700.

(Image credit: Association of Interior Realtors)

“Seasonally, it is characteristic to see sales activity cool during the hot summer months, which given the slight dip from activity in June, isn’t surprising,” Association of Interior Realtors president Chelsea Mann said. “It is promising to see some typical market activity despite high interest rate hikes creating a challenging climate for buyers and sellers.”

New residential listings in the AIR region saw a slight increase of 2.3 per cent compared to July 2022 with 2,550 new listings recorded.

(Image credit: Association of Interior Realtors)

Mann said while inventory is growing, low supply is still an issue and a primary factor driving price growth.

“With consumers feeling pinched by high mortgage rates, some buyers have gravitated towards eyeing other geographical regions with more affordable options,” Mann said.

The Association of Interior Realtors represents about 2,600 realtors in areas like the Okanagan, Kamloops and Kootenays, as well as the South Peace River region.

by Pete McIntyre

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