Residential sales in the Okanagan continued to drop in June.
There were 799 sales across the region, which covers Revelstoke to Peachland, and that represented a 22% decrease compared to June 2017. It was also a slight drop from May.
“This is the fourth consecutive month where sales volumes are substantially down from the same period last year,” Okanagan Mainline Real Estate Board president Marv Beer said in a press release.
It’s clear, according to the OMREB, that the new mortgage rules, interest rate hikes, and the possible speculation tax in Kelowna and West Kelowna are having an effect.
“In a weird kind of irony, government measures to increase housing affordability are actually having the opposite effect; not just curbing housing demand but affecting household purchasing power as well,” Beer said.
Even though last month’s inventory of homes for sale was up 22% over June 2017, the total is still historically low. There are 33 new developments slated for Kelowna, including 18 condominiums.
The average price of a home continues to climb despite more inventory and fewer sales. The mark of $547,485 was up slightly over May and up 7% over June 2017.
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