Okanagan housing prices rising faster than rest of B.C.
Despite a slow down in home sales since the B.C. real estate market peaked last spring, housing prices are up provincewide by 1.7% compared to September 2021.
The Okanagan stands out from the 10 other real estate regions in B.C. with a whopping 16.2% increase, meaning the average price of a home was $831,124 in September.
The Kamloops market was up 2.8% to $559,053, according to data released by the B.C. Real Estate Association Wednesday, Oct. 12.
Both regions are well below the provincial average of $927,119.
Half the real estate markets in B.C. saw housing prices fall year-over-year, particularly Chilliwack (down 11.5%), Fraser Valley (down 5.3%) and South Peace River (down 5.7%).
READ MORE: Home sales down in Okanagan and Kamloops but prices up
Other large price increases were seen in the Kootenay region (up 9.3%) and Victoria (up 8.7% to $927,119). Greater Vancouver is still the most expensive real estate region with the average price of $1,232,213, up 4.9% from last year.
This comes during a month when sales were down 45.8% compared to last September.
The Thompson-Okanagan fared only slightly better with Okanagan sales dropping 38.6% while Kamloops was down by 39.9%.
“Mortgage qualifying continues to be a significant hurdle for many potential buyers as interest rates rise,” association chief economist Brendon Ogmundson said in a news release.
“In addition, many trends that drove demand in smaller markets, such as remote work and the quest for affordable space, have faded in prominence. As a result, we see a stronger pullback in markets outside of major metropolitan areas.”
Another survey released recently by Point2 Real Estate Services shows Kelowna is in the middle of the pack when it comes to housing affordability across the country.
Its data is based on price per square foot that shows the cheapest housing out of 43 cities on its list can be found in Saguenay, Quebec at $178 per square foot.
Kelowna ranks as the 18th most affordable on the list at $461 per square foot while, not unexpectedly, Vancouver tops the unaffordability list at $1,234 per square foot.
Kamloops, Vernon and Penticton were not included in that survey.
— This article was updated at 10:14 a.m. Friday, Oct. 14, 2022, to add a link to the Point2 survey.
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