For the first time in nearly four years, the benchmark price of a single-family home in the Central Okanagan has dropped for the second month in a row. The Association of Realtors released its statistics for June on Wednesday, and they showed the benchmark price for a single family fell to $1,112,400 last month. This represents a 1.5% decline after a 0.1% decline in May. The last time the price for a family in the Central Okanagan fell in consecutive months was in October and November 2018. Residential property sales also slowed across the AIR region last month, down 30.3% compared to June 2021 which the association blamed on the Bank of Canada’s recent mortgage rate hikes. “It is not unusual for mortgage rates to affect market activity, especially in the higher priced markets,” said AIR President Lyndi Cruickshank in a press release. “This usually happens when interest rates go up. It makes buying a home more expensive by making what a buyer can afford more limited. “We’re seeing this effect, particularly in a higher-priced housing type. However, this change creates a welcome opportunity for buyers to slow down their decision-making, which is a welcome relief for many.” An increase in listings likely also played a role in the Central Okanagan single-family home price decline, as there were 1,046 homes on the market last month compared to just 267 in January. “Our inventory is gradually increasing and supply is increasing,” Cruickshank said. “This benefits both buyers and people looking to sell and move. As we do not expect any relief in terms of interest rates in the coming days, one should anticipate the market while pricing the properties properly.” There have been huge fluctuations in the Central Okanagan townhome listing price over the past few months. It rose 10% from April to May, but then fell 8% from May to June, reaching $763,800 last month. And a month after topping the $800,000 mark for the first time, the North Okanagan benchmark price for a single-family home fell below that line in June, hitting $798,500.
