(Photo credit: CFJC Today).

By Stephanie Swensrude

MARKET UPDATE

Kamloops housing market slows as buyers anticipate another interest rate hike

Aug 9, 2022 | 4:08 PM

KAMLOOPS — July’s real estate market statistics from the Interior Realtors Association show that residential sales were down 39 per cent compared to the same period last year, bringing the market close to pre-pandemic levels.

Inventory is accumulating; it’s up 125 per cent compared to last July. For the clients of Tracy Moffett, a local realtor, the homebuying process is a lot less stressful.

“With this market, it allows buyers to take their time, there’s more inventory for them to look at, and there’s not that frenzy to have to make an offer [or] have to make a decision very quickly,” said Moffett.

“It’s a fantastic time for buyers to be out shopping because they’ve got more choices and they’ve got more time, and they’re able to negotiate — where this time last year all of that was taken away.”

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While there’s more inventory available, making the process of buying a home less frantic, it isn’t as easy to borrow money for a house anymore, according to mortgage broker Sarah Park.

“There’s definitely a slowdown. With the Bank of Canada raising up rates last month and said to raise them up again [in] September, some people are waiting to see what’s going to happen. And people are also qualifying for less money. That is not enabling them to spend what they could [before],” said Park.

“I’m calling clients now from six months ago, saying, ‘We have to revamp, and you’re gonna qualify for less money.’”

While the average selling price for a single family home is up 12 per cent to about $750,000, Moffett says that’s too small of a snapshot to paint an accurate picture.

“When the average price of a home goes up per month, there are so many different factors that play into that,” says Moffett.

“We could have had four or five homes that were over $1-million that would have pushed that average price a little higher. Whereas, maybe next month, we don’t have as many of those houses sell so the price may come down.”

The Bank of Canada is expected to raise its interest rate again on September 7th, and until then, many buyers are holding tight.

“I have a lot of clients waiting to see. They’re still going to buy, I think they’re just holding off for now,” said Park.

“I think we are coming back to where it’s more of a balanced market,” said Moffett.

“We’ve got prices that are hopefully normalizing, we have buyers who can take their time making decisions, and sellers are still getting the prices that hopefully they’re wanting.”