Residential market ends year with sales decline

Residential real estate sales concluded 2022 with softened sales activity for the month of December.

The Association of Interior Realtors said a total of 572 residential unit sales were recorded across the association region last month, representing a 42.8 per cent decrease in sales compared to the number of units sold during the strong market of December 2021.

“After a very strong first half of 2022, we began to see market activity moderate amid consistently rising interest rates imposed by the Bank of Canada,” association president Lyndi Cruickshank said. “Although inventory levels remain tight, the high interest rates will continue to subdue market activity in the coming months.”

(Image credit: Association of Interior Realtors)

New residential listings saw a decline of 20.7 per cent within the region compared to December 2021 with 651 new listings. However, the overall inventory saw a 93.5 percent spike with 6,001 units currently on the market at the close of December 2022.

“Looking to 2023, we anticipate inventory will continue to accumulate, as compared to recent years, with all signs pointing to more balanced conditions with buyers and sellers benefitting equally,” Cruickshank noted, adding “real estate professionals will continue to support buyers and sellers as they navigate the real estate markets across the region.”

The benchmark price for single-family homes in the Central Okanagan, North Okanagan, South Okanagan and Shuswap/Revelstoke regions all saw moderate decreases in year-over-year comparisons.

The benchmark price in all other housing categories saw minor to moderate increases compared to December 2021, with the highest percentage increase in the townhouse category for the North Okanagan; up 13.8 per cent compared to December 2021, coming in at $574,400.

The average number of days to sell a home increased to 75 days compared to last month’s 65 days.