A recent report from the Okanagan Mainline Real Estate Board (OMREB) says that there is a continued imbalance between supply and demand as home sales in August cooled down.

Residential sales in the Okanagan region of Peachland to Revelstoke cooled slightly in August to 882, an 8% decrease from July sales (961), and 14% fewer sales than August of last year.

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However, as new builds start to reach completion, supply will hopefully catch up to demand in the Okanagan market.

OMREB President Tanis Read says that they know there was a high volume of building permits taken out in 2016, and as those new buildings reach completion they should have a positive effect on affordability.  

“Conditions still favour the seller, and will likely continue to do so until inventory grows or demand lessens,” says Read. “While August is typically a slower month in terms of sales volume, this imbalance between demand and supply is propping home prices in the Okanagan, and may lead to a more sustained drop in home sales if supply can’t catch up.”

The average home price in August of this year was $489,130, which is 5% higher than in August, 2016.

New listings stayed relatively consistent with the previous month. Days on market rose slightly to 70 days from 63 days in July, but lower than 85 days this time last year.

Once again, two-parent families with children were the largest buying group at 29%, closely followed by couples without children at 26%.

Read also noted that while the market cooled slightly in August, they are still seeing an increase of millennials forming their own households.  

“It’s interesting, yet perhaps not surprising, to note that we are seeing more parents, and even grandparents, participating in home purchases for their children [and] grandchildren,” says Read.