Kamloops remains a seller’s market

Lack of real estate inventory poses challenge for buyers and drives prices higher

Nathan Boldt is frustrated.

Boldt and his wife have been house hunting since February, having moved to Kamloops last year.

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They have been renting but are looking to buy now that their work situations have cemented.

In the two months they’ve been searching for something between $500,000 and $600,000 — a popular range for local buyers — multiple-offer situations have created bidding wars and caused prices to spike at the last minute.

“It’s a little frustrating,” Boldt told KTW. “There wasn’t a whole lot coming on the market in February.”

Kamloops is still a seller’s market thanks to a lack of inventory, according to statistics from the Kamloops and District Real Estate Association.

The data show 2019 housing sales have dipped compared to last year while active listings are up slightly but still well below the city’s historical average of 2,704 for April.

KADREA reported 1,116 active listings to date in Kamloops this year, which was nearly seven per cent higher than the 1,044 to date last year.

New listings for April, however, were at 477 — down from 496 a year earlier.

The historical lack of inventory poses a challenge for buyers as, depending on price point, they can face multiple offers in a quick-paced housing market, KADREA president Wendy Runge told KTW.

KADREA stats show the top sales category during April 2019 were homes priced in the $400,000 to $500,000 range with 71 sales, followed by those in the $300,000 to $400,000 range with 59 sales.

Brocklehurst was the most active area last month recording 31 sales, with Aberdeen and Sahali each posting 20.

Sales in Kamloops were just 272 residential properties being bought compared to 311 last April — a decline of 12.5 per cent.

Between January and April 2019 there were 826 residential sales in Kamloops compared to 873 during the same period in 2018, representing a decrease of 5.4 per cent.

Addressing the slump in sales, Runge said Kamloops tends to be a “weather-driven market” where the mercury rising can influence people getting out and looking or even listing their homes.

The median residential price in April took a step back to $475,000 after hitting a record high of $502,000 in March.

April’s median price, however, was still 4.4 per cent higher than the $454,900 of April 2018.

Runge said the median price tends to fluctuate month to month.

“If there is a greater increase in higher priced homes sold in that month, it can really affect the median price,” she told KTW via email. 

“Overall, we are still seeing a steady moderate increase in pricing. The inventory has not yet increased enough to have an effect on it.” 

The average price of a home in the Tournament Capital was up to $414,858 — up 11.7 per cent last month over April of 2018, fuelled mainly by increasingly expensive townhomes and apartments.

Single-family homes had an average price of $459,828 in Kamloops during April, up 6.2 per cent over 2018.

Overall the Kamloops housing market continues to show stability with sales running slightly below the last couple of years but improved pricing due to continued high demand and historically low supply, accoridng to KADREA.

Runge described the Kamloops housing market as remaining strong, supported by affordability compared to other areas in the province.

© Kamloops This Week

 


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