Kamloops real estate outlook better than the Okanagan or rest of B.C.
Housing sales are expected to be down 34% in B.C. this year compared to the record high set in 2021 and drop another 11.4% through 2023.
But, in a forecast released Nov. 8 by the B.C. Real Estate Association, Kamloops will fare much better and the Okanagan slightly better than the rest of B.C.
“The factors that drove unprecedented housing market activity over the past two years, including record low mortgage rates, buyer preference for extra space and the ability to work remotely, are now unwinding,” the association’s chief economist, Brendon Ogmundson, said in a news release. “As a result, there has been a significant shift in the housing market, which we anticipate will continue through 2023.”
The forecast is for sales in Kamloops to only drop by 27.9% this year and 7.4% next year.
The Okanagan forecast is closer to the provincial average at 33.1% this year and 8.4% next year.
In real numbers, that means there are expected to be about 1,000 fewer housing units sold in Kamloops this year, bringing the total to about 2,700.
For the Okanagan, it’s a drop of about 4,700 to 9,500 homes.
While sales are expected to drop, prices are forecast to rise by 4.6% this year in B.C. then fall 5.4% next year.
Kamloops is looking at a 14.4% increase this year to an average home value of $640,000. Even with a 2.3% expected decline in 2023, that will still leave prices higher than the $559,595 average for last year.
In the Okanagan, an 11.3% increase this year will bring the average price up to $740,000. Again, a 4.9% projected price drop next year will still leave the region about $41,000 above last year’s average price of $701,416.
“On the supply side, slow sales activity has led to an increase in inventory, but from record lows,” Ogmundson said in the news release. “Active listings growth has slowed and is short of levels where we tend to see more substantial downward pressure on prices.”
READ MORE: Putting 'slumping' Kamloops, Okanagan real estate prices into perspective
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