Central Okanagan housing prices expected to decline further this fall
It’s no secret that interest rate increases have triggered a significant slowdown and price decline in the real estate market all over Canada.
While prices are well above last year’s levels, thanks to a wild runup in 2021, Re/Max realty is forecasting a drop in prices in most of Canada with the Central Okanagan expected to experience one of the biggest declines anywhere.
Re/Max's fall outlook forecasts a 6.5% drop in housing prices in the Central Okanagan this fall.
This follows a 3.5% decline since prices peaked in April.
Peterborough, ON and St. John’s NL are both expected to see prices fall slightly more, by 7%. Winnipeg prices could drop 8% and Barrie, ON by 10%.
Metro Vancouver is expecting a 3% drop and Victoria, the only other B.C. city on the list, is forecast to have no change.
It’s not all bad news. Calgary, for example, is expecting a 3% price increase through the fall.
It also should be kept in perspective.
From Jan. 1 to Aug. 31, 2021, the average selling price for all units in the Central Okanagan was $785,472, according to the report.
Prices climbed 18.8% during the same time frame this year to $933,112 so a 6.5% drop will still be about $90,000 higher than last summer.
And the decline is not expected to continue into next year.
“Low inventory remains a pressing concern in Kelowna, Victoria, Vancouver and Calgary and is expected to place upward pressure on home prices in 2023 and beyond,” the Re/Max report says.
The full report can be seen here.
READ MORE: Okanagan real estate market faring better than Kamloops and rest of B.C.
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