The Okanagan’s summer weather is predictably hot, but the region’s housing market has continued its cooling trend.

There were 742 sales in July across the Okanagan Mainline Real Estate Board, that stretches from Revelstoke to Peachland, a slight drop compared to June, but that sales number is 23% less than what was seen in July 2017.

A pull back from the highs of last year was expected, however, real estate professionals say the trend may be largely influenced by government intervention.

July saw the Bank of Canada raise its interest rate for the second time this year and real estate professionals say new restrictive requirements are continuing to lessen sales.

Photo Credit: NowMedia.

“I think we can officially say that we are moving towards balanced market territory, although we are still at a point where the market tends to favor sellers more than buyers, yet not as much as in previous years,” comments OMREB President Marv Beer.

While the cooling sales numbers point towards a more balanced market, the average price of a home in the OMREB region actually jumped 2% from June to $559,235, which is 11% higher than the average home price during the same period last year. 

“It takes time for those active in the market to respond to changing market conditions, so sales activity tends to fall before prices adjust. Likewise, days on market is also a factor to watch, with longer days on market associated with downward pressure on pricing.”

Photo Credit: NewMedia.

OMREB once again used their monthly update to criticise the BC NDP's speculation tax, highlighting their data indicating foreign buyers comprise less than 3% of the region's buyers at any given time and those from other provinces are less than 15%.

“The make-up of buyers of homes in this region, softening market conditions and continued federal government intervention all would suggest that further interference in the market via a speculation tax that would impact long-term BC homeowners far more than speculators, out of province, or foreign buyers is not needed and makes no sense whatsoever,” said Beer in a media release.