The torrid pace of real estate sales in the Kootenay region has dropped off a bit in recent months. There were 175 residential unit sales in January 2022, about 20 per cent lower than the same time last year. However, average house prices have risen from $419,647 to $494,608.
Bruce Seitz, former KAR President says that he is glad the market has slowed down a little, as it could bring some balance to supply and demand, as low inventory remains an issue.
“Our sales performance followed its seasonal trend of having fewer sales per month towards the end of the year. This drop was quite a sharp one in December 2021, and we’ve nearly remained at the same level in January 2022.
“Average prices continue to rise, with inventory staying at the same level month-on-month. It’s been quite some time since I’ve seen a substantial rise in inventory numbers, and it’s my hope that this will improve soon. At this point in time, I feel that having a slow month in terms of sales might actually be a good thing for the market overall.”
The strong demand creates upward pressure on prices, However, Seitz says that average prices may plateau over the next few months.
“In my view, an improvement in inventory and stable average prices at the beginning of spring will be instrumental in driving our market performance for the rest of the year.”
On February 7th, the Kootenay Association of REALTORS® (KAR) and the Kamloops and District Real Estate Association (KADREA) merged with the Association of Interior REALTORS® to form the third-largest REALTOR® Association in the province.