September was quick to arrive and end with getting back into the school routine and the fast approach of fall weather. The leaves this year seemed to turn orange and drop quicker then ever. Leaves are not the only thing that have been dropping however with unit sales continuing to drop for the sixth consecutive month. Sales peaked in March 2021 and have been dropping every since, while gradual it has been a trend none the less. Inventory was following the same trajectory with a slight uptick these past three months, unfortunately very marginally and not enough to feel a correction on prices. Average sale price continues to climb this year and at this point in the year I do not see any changes happening this winter which is good news for Sellers.
KAMLOOPS AND DISTRICT NEWS
We’ve entered the final quarter of 2021 and the Kamloops real estate market appears to be all set to close the annual sales performance on a high note. According to KADREA President, Chelsea Mann, “This is quite true, considering the demand that we’re continuing to see. However, we must be aware that the extreme hot market that resulted due to the pent-up demand during the pandemic, appears to be over. We have seen sales numbers drop a little since they peaked in April 2021, but I’m glad that there has not been any abrupt fluctuation in our performance. We have seen an influx of out-of-district buyers in addition to the local buyers throughout the pandemic and although the number of sales has come down, we are still experiencing multiple offers scenarios due to the extreme lack in inventory. I’m confident that demand for properties will continue to remain high in the coming months as well and although our unit sales numbers have traversed horizontally on our performance charts in the last 3 months, our performance for the first three quarters of the year create the perfect scenario for us to close the year on a high.”
For the buyers, upward pressure on Average Prices because of falling inventory in the last year seems to be the major problem that Realtors® will have to address. “Upward pressure on Average Prices in real estate is a real predicament because as affordability continues to erode for Buyers because of the lack of supply, some Sellers are holding off from listing. Although they stand to benefit financially on the sale, they will be faced with difficulty in finding their next home once they become the Buyer. We can’t deny that Covid-19 may still be restricting sellers from listing their homes at the moment as well, but hopefully this is something that will address itself in due time. This problem of extreme lack of inventory is a puzzle that will stay with us for a while”, added Chelsea.
The number of new listings hitting the market has stagnated over the last 3 months. Chelsea adds, “As I’ve mentioned before, inventory will continue to be an issue in the region for at least the next year. That by itself, is a healthy reason for homeowners to make the best of this opportunity and get good value for the purchase they made years ago. Once the environment around real estate transactions changes and the inventory crunch balances out, the same demand that we see today may not be able to fetch the same value for sellers when it happens.
Neighbourhoods with the most sales in September (# of sales):
- Brocklehurst (41)
- Sahali (25)
- Sun Peaks (24)
- Aberdeen (22)
- South Kamloops (21)
|SEPT 20||SEPT 21||Year to Date|
|AVG. RESIDENTIAL SALE PRICE||$514,509||$584,821||$561,598|
|AVG. DAYS ON MARKET||63||37||43|
|AVG. RESIDENTIAL SALE PRICE||$476,010||$561,598|
|DAYS ON MARKET||57||43|
*Table Stats are for Kamloops area only, all types of housing as of Oct 12/21 – Kamloops only: Brocklehurst, Sahali, North Kamloops, Aberdeen, South Kamloops, Sun Peaks, Barnhartvale, Dallas, Westsyde, Campbell Creek/Deloro, Pineview Valley, Valleyview, Batchelor Heights, Cherry Creek/Savona, Dufferin/Southgate, Heffley, Juniper Heights, Pinantan, Rayleigh, South Thompson Valley, Sun Rivers, Knutsford-Lac Le Jeune, Tobiano *