Would you like to subscribe to our newsletters?

Okanagan real estate market faring better than Kamloops and rest of B.C.

Kelowna realtor Colin Krieg
Kelowna realtor Colin Krieg
Image Credit: YouTube/Krieg Family Real Estate/ReMaxKelowna

After a record-setting 2021, it’s only reasonable that the pace of housing sales in B.C. this year can’t match those numbers.

But something a bit strange happened in the Okanagan market last month.

“We experienced something interesting in August – sales went up from July,” realtor Colin Krieg wrote in his monthly Krieg Family Real Estate/ReMax Kelowna newsletter. “This is highly unusual to see an August with higher sales.”

It's also unusual at a time when Kamloops and the rest of B.C. were on a downward trend in terms of sales.

In August, sales in B.C. totaled 5,645, a 1.2% drop from July and a 40.8% decline from 2021, according to a monthly update by the B.C. Real Estate Association.

Kamloops sales were down to 187 units, a 7.8% decline from July and a 36.4% drop from August 2021.

While sales in the Okanagan were down 32.2% from last year, they were actually up 11.1% from July, totalling 671 sales.

When it comes to prices, only the South Peace showed a year over year decline out of 11 regions in the B.C. Real Estate Association data report.

But when comparing to July, B.C. as a whole and Kamloops saw a drop in prices while the Okanagan went in the opposite direction.

The average price for all housing types in B.C. dropped 0.5% to $918,378 in August from July. The fall was more dramatic in Kamloops where the $580,128 average price was 12% lower than in July.

In the Okanagan, the average price throughout the region climbed 3.1% to $775,967.

READ MORE: Home prices dropping in Kamloops but rising in parts of the Okanagan

Krieg attributes the higher sales volume to the shock wearing off from the 1% increase in the Bank of Canada rate in July.

“Not to worry, the Bank of Canada announced another massive 0.75% interest rate hike in September to shock the market again,” he wrote. “It's too soon to say what kind of impact that will have, but I expect September sales to taper again.”

In a video attached to his news release, Krieg says he doesn’t expect any real upward pressure on prices for the next two years.

“We just finished our 10-year cycle – or our boom,” he said. “I think it’s going to be a little while before we get back there.”

He sees a dip in high end sales but lower end sellers will be “just fine.”

READ MORE: You can still sell your home in a tough Kelowna real estate market if it’s priced right

To contact a reporter for this story, email Rob Munro or call 250-808-0143 or email the editor. You can also submit photos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

We welcome your comments and opinions on our stories but play nice. We won't censor or delete comments unless they contain off-topic statements or links, unnecessary vulgarity, false facts, spam or obviously fake profiles. If you have any concerns about what you see in comments, email the editor in the link above.