File Photo (Image Credit: CFJC Today)

By Katlyn Eriksen

Sound Off

SOUND OFF: Current trends in the Kamloops property market

May 4, 2024 | 6:00 AM

IN KAMLOOPS, the property market is recovering fast. In February alone, 163 properties got new owners. This is a 4.5 per cent increase from the same time last year and nearly double from December’s count of 87 sales. Though this spike in activity signals market health, price trends paint a more complex picture. The median list price for homes rose slightly from February to March 2024 at $629,212 to $637,673 respectively – that’s an increase of about 1.34 per cent. On the flip side though, average prices dropped down slightly by approximately 0.3 per cent at $614,261 for February. There’s good news for potential buyers, too, as new listings have shown an upward trend lately, rising about 18.2 per cent in February 2024, coming at around 953 active listings. That creates nearly six months’ worth of supply, vastly improving chances for people on the lookout to buy properties. In brief then, the market right now is showing signs of both activity and stability.

Factors influencing property prices in Kamloops

The property market in Kamloops is complex. Many factors shape it, including economic issues. Inflation and supply chain disruptions are two major factors causing prices to rise due to increased construction costs. Changing climate conditions also add up to the cost of building maintenance, which can lead to higher prices for properties. Interest rates, too, have a big role in shaping this market. However, now that fixed-term mortgage rates have slightly decreased, more houses are being put on sale again, provided there’s demand from buyers. The supply of housing units is another important factor that impacts property prices. Despite a recent decrease in new listings – 306 tracked in January 2024, which compared with last year are down by 6.7 per cent, active listings saw an upward trend growing by 8.1 per cent within the same period totaling at 797 units available for sale. This highlights that housing supply is indeed increasing, which will possibly result in lower prices if demand doesn’t match it.

Future outlook for the Kamloops property market

Looking ahead in 2024 and beyond, the Kamloops property market is showing signs of recovery. Challenges such as high mortgage interest rates and wildfires led to a rough patch in 2023. Affordable housing was hard to find, which created further problems. However, the benchmark price for properties indicates a hopeful trend. It provides more accurate value details than average or median prices. Data from Association of Interior Realtors highlights that in all categories of housing, there was an increase compared to February 2023. Among these, condominiums saw the biggest rise with an encouraging jump of 11.3 per cent. This brought their price up to $380,100. Townhomes and single-family homes also saw an increase of 2.6 per cent and 5.8 per cent respectively from previous year’s prices. Townhomes now come in at $526,800 while single family homes register at $647,000. Plus, Kamloops’ real estate market draws strength from its diverse economy offering much potential for growth in the near future. This is due to various local projects and developments ranging from hospital expansions to pipeline ventures — along with Thompson Rivers University (TRU).

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Importance of market stability for Kamloops

Markets need to be stable for good economic growth. When real estate markets are steady, there can be more jobs in areas like construction and sales. The stability of the property market is also crucial for people buying or selling homes. Buyers can decide better when to buy and what kind of properties they want when the market is predictable. On the other hand, sellers know their home’s worth won’t suddenly drop. Stability in housing affects rental rates, too. Fixed rent prices are beneficial for landlords and those renting from them alike. Therefore in this context, it would benefit Canadians to reset their finances, as improved financial stability among individuals can contribute to overall market stability. A balanced market draws investors from inside the country and outside as well, helping improve business activity levels. A consistent property market allows communities to plan for long periods of development which perks up infrastructure and public services. A lot of people have invested much financially into their homes and a steady market helps maintain this investment providing security on one’s finances.

Market stability is key in Kamloops property market. It brings economic balance and makes things clear for buyers and sellers alike. It influences the rental scene, too, and investors find it appealing. Furthermore, stability helps communities grow stronger while offering financial protection as well.

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Editor’s Note: This opinion piece reflects the views of its author, and does not necessarily represent the views of CFJC Today or Pattison Media.