Strong demand, low supply push October home sales

Strong demand and lower than average supply continue to make Kamloops a hot real estate market.

Prices and sales were up in October compared to the same month last year but the number of listings was down, according to statistics released by the Kamloops an District Real Estate Association.

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There were 41 more homes sold last month in Kamloops and the surrounding area than October 2018 — good for an 18 per cent increase from 232 homes to 273.

That number is still well short of the 296 home sales recorded in October 2017.

Housing inventory was down in October with 331 homes hitting the market compared to 337 last year.

Year-to-date, new listings are similar to what they were last October with 4,067 compared to 4,092, but that is well below the five and 10 year average, according to KADREA statistics.

“With sales up and listings down, this puts pricing pressure on the markets so home prices continued to rise in October,” stated a press release from KADREA.

The median residential price was up nearly $30,000 from last year, reaching $515,000 in October 2019 — up six per cent from $487,000 in October 2018.

A $515,000 median is a record for Kamloops, said KADREA past president Doren Quinton.

Single family home sales were up 26 with 167 sales compared to 141 last year for a year-over-year increase of 18.4 per cent, with prices averaging $494,283 in October compared to $488,281 last year.

The average price of all homes sold during October was $418,465 compared to $406,912 in the same month last year, good for an increase of about three per cent.

While the average and median prices can vary month-to-month depending on the sales mix, median home prices above $500,000 have become a recent reality in Kamloops.

Nearly 70 per cent of area homes sold in October were within Kamloops city limits.

Brocklehurst had the highest number of sales in October with 26 units sold followed by Westsyde at 24 sales and Aberdeen with 21 sales.

Sales for last month were concentrated in the $400,000 to $500,000 range with 61 sales in that price category, followed by 48 sales between $300,000 and $400,000, and 40 sales between $500,000 and $600,000.

Year-to-date, annual home sales in Kamloops have declined just five per cent to 2,505 sales this year compared with 2018’s 2,642 sales.

Sales were up in September and October compared to 2018, but the previous eight months have been in decline from last year’s sales figures, Quinton told KTW.

He said 2017 was a record year for home sales, but in 2018 those sales were down about 10 per cent.

Quinton said it looks like home sales in 2019 will be down another five per cent from last year.

He said Kamloops and northern parts of the province are the only parts of the province that have been showing stability or price increases in 2019, compared to the rest of B.C. where there are low sales and falling prices.

With 717 single family homes currently on the market in Kamloops and 167 sales in October, it would — if those sales numbers continued month over month without any new listings coming on the market — take 4.2 months to deplete that inventory, Quinton told KTW.

“Anything under five [months] is really a sellers market, anything over five months inventory starts to become more balanced,” said Quinton.

Inventory for townhouses is at 2.4 months and 5.8 months for apartments.

© Kamloops This Week

 


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