Home sales in Kamloops are down, underscored by limited inventory in the marketplace.
“I think what we’re seeing is a bit of a cooling in the market,” Kamloops and District Real Estate Association president Wendy Runge said. “This June was one of the lower Junes on record, actually, in the last several years.”
Activity has been down month over month. In June, 262 homes were sold locally, compared to 328 homes sold in June of last year, representing a 20 per cent decline.
Runge pointed to year-to-date numbers for a more accurate depiction. This year, 1,411 homes have been sold, compared to 1,540 sales last year — a nine per cent decline.
Brocklehurst saw the most action last month, with 26 sales, followed by homes selling in Aberdeen (22), South Kamloops (22) and Sahali (20).
While activity is down, home prices have not yet been affected. The average sale price across the market (single-family, townhouses and apartments) in June was $425,000, up by nearly nine per cent from last June, when the average sale price was $391,000.
Seventy-three sales in June were for between $400,000 to $500,000. The average single-family home price is sitting at $495,000, compared to $492,000 in May. Three homes sold for more than $1 million in June.
Runge said home prices are still high because listings remain low, despite a slight increase in new listings in June.
At the end of June, 1,269 new listings were posted, compared to 1,198 new listings at the end of June 2018.
Runge said the market has seen a sharp decline in the number of properties for sale, resulting in a supply issue, rather than a demand issue.
Asked for reasons the market is cooling, Runge said trends in the Lower Mainland trickle to the River City. The market change in Vancouver has slowed migration to Kamloops.
Additionally, Runge pointed to new mortgage rules, the so-called stress test in which buyers need to have an income that can withstand rate increases.
“It’s really changed what people could afford. I think it’s affected buyers more than we even realized,” she said. “That’s why you see that $400,000 to $500,000. I think people who could have afforded something in the higher price range before the new rules are now having to readjust what they’re looking for. We’re still seeing a lot of sales in that $400,000 to $500,000 and the townhouse market — very strong.”