Kamloops home prices have again reached record highs, but the market may have cooled some, with limited supply choking off both sellers' and buyers' options.
Some homes for sale in Kamloops are still receiving multiple offers, even during a time when the market typically slows, according to the Kamloops and District Real Estate Association.
Homes are also selling as fast as they ever have, with an average of 27 days on the market.
KADREA president Chelsea Mann describes the Kamloops market as "inventory starved" but said the region will still likely see record sales this year, given what has already sold and what future months look like.
"Inventory will remain a cause for concern," she said.
While this past August was not a record-setting month, with 219 units sold, months prior have shown an increase in sales volume.
In fact, to date, 2021 has towered above in terms of units sold, with 2,656 homes changing hands. That's about 325 more than the second highest year-to-date figures seen in 2017.
In 2021 so far, the average price of a house in Kamloops has been $563,829 — about 20 per cent higher than it was one year ago, when the average home in Kamloops cost $472,412.
But on top of that price increase, 50 per cent more homes have been sold — from 1,362 in 2020 to 2,049 in 2021.
Other nearby areas within the Kamloops district have also seen increases. Merritt and area is up 41 per cent in volume and 20 per cent in price to an average of $417,328. Barriere and area homes now sell for an average of $445,995, an increase of 46 per cent since last year. Logan Lake and area homes average $380,868 — a 53 per cent increase. Chase and area, meanwhile, saw a 48 per cent increase in price to an average of $647,610, and more of those homes have sold, with volume up 70 per cent to 122 homes changing hands so far this year.
As of Sept. 3, Kamloops had 875 active home listings. Mann said about 350 new listings are added each month, with about 300 sales in the same period.
"It will take some time for the Kamloops real estate market to reach a healthy state of supply," Mann said.
With such low supply, Mann said sellers may be balancing their decision to sell on the high prices offered by the high-demand market and the difficulty in finding a new home due to lack of supply.
"This, coupled with the aftermath of the fires, changing regulations, and an unforeseen upcoming election, may have had a discouraging impact on prospective sellers in the region," Mann said.