According to the Okanagan Mainline Real Estate Board (OMREB) prices are up and sales are down but so is the average number of days on the market.
While December sales saw a 24% decrease from November, OMREB says sales dips during the holiday season are about as normal as snowfall in December.
“Outside of a couple of variances, the market is doing what it generally does this time of year,” said OMREB president Tanis Read, noting a general slowing of activity. “Sales and listing volumes were both on-trend for this time of year, but, interestingly, average price and days on market bounced back from November.”
Sales were down, but housing prices in the Okanagan continue to trend upwards.
According to The Vantage Report, released by Vantage West Realty Group, the average price of a single-family home eclipsed the $1 million mark in the areas of Southeast Kelowna/Crawford Estates and West Kelowna’s Lakeview Heights.
In December, Okanagan home prices rose 3.5% from November and 12% from a year ago.
“Higher average price can often reflect the composition of product sold over the course of the month,” said Read. “But coupled with the fewer days on market, it may also suggest a continued lag in resale product availability, potentially coupled with consumers possibly looking to lock in purchases before new mortgage rules take effect in January.”
Effective Jan. 1, new federal mortgage tightening rules require borrowers with a down payment of 20% or more to face a stress test when renewing or refinancing a mortgage to prove they can cope with the risk of higher interest rates.
“These new rules impact both those seeking a mortgage as well as those refinancing their mortgage,” explained Read, adding “the impact may be that those now in the market for a home may have to settle for a less expensive home or wait and save up for a larger down payment.”
However, the new mortgage “stress test” regulations will not apply to clients who are renewing an existing mortgage.
Click here to check out the 10 most expensive properties in the Okanagan.
