Unfavourable market conditions are continuing to hurt real estate sales in the Okanagan according to the Okanagan Mainline Real Estate Board (OMREB).

Home sales in May were down 28% over the same month last year, representing the third consecutive month of tumbling sales volumes compared to the same period in 2017.

Photo Credit: KelownaNow.

“Not surprisingly, the residential home market continues to slow after a particularly heady market that peaked in 2016. Supply is starting to catch up with new units coming on stream, while demand is dampening as a result of government regulations,” said OMREB President Marv Beer.

However, numbers were up month over month from April, with 817 homes sold and 1764 homes listed at an average price of $532,972 for the month of May.

According to OMREB, a poor combination of regulatory 'red tape' coupled with an uncertain regulatory environment is negatively impacting the current supply of housing and future affordability. 

Photo Credit: KelownaNow.

“The problem with trying to curb demand is that it is unlikely to free up the kind of housing people want and need, plus it’s risky, with the potential for broad-reaching economic and development implications,” explained Beer. 

“As governments continue to tinker, rather than deal with the root cause of BC’s real estate market woes, they are very likely to harm the very people they aim to protect and support.” 

OMREB has been an outspoken critic of B.C.'s speculation tax, which impacts both Kelowna and West Kelowna, calling it an unfair and ineffective measure. 

Real estate professionals also continue to point to new mortgage regulations, that include a mortgage “stress test” on down payments of 20% or more, as having a major impact on slowing market activity.