There were 262 homes that were sold this June, compared to 328 homes in the same month last year (Image Credit: CFJC Today)

By Chad Klassen

REAL ESTATE NUMBERS

Lack of inventory in Kamloops slowing down sales, prices remain high

Jul 23, 2019 | 5:48 PM

KAMLOOPS — Summer is typically a busy time in the real estate market with the beautiful weather. But according to numbers in B.C. and Kamloops, June bucked the trend.

The Kamloops & District Real Estate Association (KADREA) says there were 262 homes sold last month compared to 328 in June 2018, amounting to a 20 per cent drop in sales.

The association says there just aren’t enough homes on the market to keep up with sales in previous years.

“Yes, our activity has been down over the last several months, but also it’s converging with this other market, which is low inventory,” said President of KADREA, Wendy Runge. “I think what we’re seeing is a supply problem, not really a demand problem. There are buyers who want to buy, but there’s not much to buy.”

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Year-to-date is more positive in Kamloops with only a nine per cent drop. Some of the decrease is being attributed to a trickle-down effect from a cooler Lower Mainland market.

“It definitely impacts, especially our higher end. That’s where we’re seeing the slowdown, that $560,000 and up. It’s quite a quiet market right now,” noted Runge.

Runge says, however, the price of home has not dropped at all.

“Our median price in June was $496,000 compared to $497,000 the month previous, so our pricing is staying right in there, up quite a bit from the year previous,” she said. “We’re seeing the $400,000 to $550,000 market is very, very busy.”

Real estate in Kamloops and across the province has slowed down significantly in June (Image Credit: CFJC Today)

With a significant drop in sales in June, mortgage brokers in B.C. are noticing the same trend by as much as 20 per cent across the province.

“We’re seeing things slowing down a little bit as far as purchases go,” said Brenda Colman from Invis in Kamloops. “Realistically, we’re still staying fairly busy.”

Colman also says with higher housing prices, owners are using equity to spruce up their place.

“We’re finding that people are taking advantage of the tax assessments. The appraisals are coming in higher, the appraised values,” she noted. “With that happening, people are able to access a bit more equity in their homes, so they’re doing the renovations, they’re doing that new kitchen, they’re doing that new deck.”

Meantime, the real estate association says with a lack of inventory, sales in July and the rest of the summer are expected to remain low.