Market Statistics

Kootenay Residential Real Estate Market Activity Lower than Expected

NELSON, B.C. – September 6th, 2024. Residential real estate sales in August fell despite interest rate cuts, reports the Association of Interior REALTORS® (the Association).

A total of 1,165 residential unit sales were recorded across the Association region in August coming in below July’s 1,351 units and below August 2023’s units sold by a 9.5% decrease.

“Sales activity was trending upwards towards the end of July yet tapered off in August, more so than the usual seasonal slowdown,” says the Association of Interior REALTORS® President Kaytee Sharun, adding that “demand doesn’t seem to be translating into sales despite recent interest rate cuts, indicating that there could be various other factors impacting market activity or some sellers were merely holding out for the latest Bank of Canada rate cuts.”

New residential listings saw an increase of 9.3% compared to August 2023 with 2,586 new listings recorded last month. The total number of active listings saw an uptick of 31.4% of total inventory compared to August 2023 with 10,198 recorded across the Association region. The highest percentage increase in active listings for a fourth consecutive month was in the Central Okanagan region with a total increase of 41.2% compared to August 2023.

In the Kootenay and Boundary region, unit sales saw a decrease of 23.3% compared to sales activity in August 2023 with 240 sales recorded last month and down from July’s 256 units sold. There were 465 new listings recorded in the Kootenay and Boundary region in August marking a 11.8% increase compared to August 2023 and a decrease from July’s 480 new listings. The overall active listings in the Kootenay region saw a 23.3% increase compared to August 2023 with 1,858 listings overall.

“The Kootenay region saw lower sales activity for August than is seasonally typical for the region. However, it is important to note that it is not unusual to see real estate activity occasionally go through unexpected ebbs and flows. The region is still one of the more affordable areas in the province and the latest rate cuts could foster a return to normal sales activity in the coming months,” says Sharun.

The benchmark price, a better representation of value compared to the average or median price as it represents a dwelling of “typical attributes”, saw percentage increases in the Kootenay region in all housing categories compared to the same month last year, with the highest percentage increase of 4% recorded in the condominium category, coming in at $331,700. The benchmark price for townhomes saw a 3% increase in year- over-year comparison coming in at $512,100 and the benchmark price for single-family homes was up 1.8% coming in at $611,900.

Given the high stakes on such a significant financial transaction, home sellers and buyers can benefit from the knowledge and skills of a practiced REALTOR®.