Kamloops Real Estate Market Update: October 2024
October saw continued resilience in the Kamloops real estate market despite fluctuating dynamics in inventory, pricing, and buyer interest. Following the Bank of Canada’s September rate reduction, buyers appear to be reentering the market cautiously, though affordability challenges and limited supply remain key factors shaping the landscape.
Inventory At the end of October, Kamloops housing inventory reached 388 available homes, marking a 71.68% year-over-year increase. While inventory is up, supply remains tight by historical standards, offering buyers a bit more selection without oversaturating the market. The constrained supply continues to be influenced by high construction costs and an aging population choosing to stay in place, limiting new listings entering the market.
Sales Price Home prices in Kamloops edged higher, with the average sale price reaching $841,526 in October 2024—a 1.30% increase from $830,726 last year. This moderate rise reflects a rebound from earlier price dips as the market adjusts to increased inventory levels. For buyers, the slight price increase indicates resilience in the market, with Kamloops maintaining appeal for its balanced economy, outdoor lifestyle, and relatively affordable cost of living compared to other BC markets.
Days on Market Properties took longer to sell this month, with the average Days on Market (DOM) rising to 57.17, up by 6 days from October 2023. This increase aligns with recent market trends where buyers are taking more time to evaluate their options amidst higher inventory levels. However, as interest rates stabilize and affordability becomes slightly more accessible, this extended market time may narrow in the months ahead.
Sales Performance Reflects a Stronger Close Rate October saw 134 new listings, a 15.72% decline from last year, while sold listings surged by 40.79%, reaching 107 compared to 76 in October 2023. This list-to-sale ratio indicates a positive market response to more affordable borrowing costs, with more buyers finding success.
Third Quarter Recap and Broader Market Insights This quarter reflects Kamloops’ ability to withstand change amidst broader shifts in BC real estate. Although 2023 saw a dip in residential sales—the slowest pace since 2014, with only 2,392 homes sold in the region—Kamloops continues to offer a unique balance of accessibility, affordability, and lifestyle. Notably, while regions like Sun Peaks saw sales drop by 40.2%, areas like Pineview Valley and Clearwater experienced a surge due to infrastructure projects and the forthcoming Pineview Valley Elementary School.
The high cost of construction and B.C.’s new regulations on short-term rentals (effective May 2024) may offer some relief to housing supply, but demand remains competitive. As fixed mortgage rates stabilize and further potential rate cuts loom in 2024, consumer confidence is on an upward trajectory. This dynamic provides cautious optimism for the Kamloops market as we head into winter, with the affordability challenge persisting for some but overall activity likely to remain steady.
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