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Kamloops Real Estate Lack of New Listings Pushes Prices Higher

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Kamloops Real Estate Lack of New Listings Pushes Prices Higher
2 min. read

 

Image: Josef Hanus/Shutterstock.com

In February 2019, the Kamloops real estate market continued its strong start to the year and even broke a few records. A lack of new listings coming onto the market had knock-on effects for both the inventory and for the increasing house prices. In general, however, sales were trending with the five-year and ten-year averages and the market was considered to be demonstrating some economic stability.


Sales Decline from 2018 but No Cause for Alarm

The real estate market in Kamloops saw 180 sales in February 2019, which represented an 8.2% decrease over the same month of the previous year. The year-to-date figure was down by 5.1% compared with last year. However, the figures are respectable when compared to the five-year and ten-year averages.

Number of SalesFebruary 2019Difference over February 2018
Monthly1808.2%
Year-to-Date3375.1%


Fewer New Listings on the Market

While the residential housing supply in the city rose slightly in February 2019 compared to the previous month, a very significant drop in the number of new listings, down to 248, meant a decrease of 21% compared to the same month in 2018. There are currently about 5 months of inventory, which is about the same as a year previously but well below the long-term February average of 8.8.

 February 2019Janauary 2019Difference
Active Residential Listings9098951.6%


Record-Breaking Prices and Volume

With fewer homes on the market it seems that sellers have grasped the opportunity to raise asking prices, and in February the average price increased by 12.3% over the same month in 2018, achieving a record of $422,572. The year-to-date average price hit $417,292, a 10.1% rise. The total value of all home sales was $76.1 million, which was also a record for February.

Doren Quinton, President of the Kamloops and District Real Estate Association, stated that:

“When you already have historically low inventories, and new supply falls as well, you would expect that to limit the number of deals that happen in a given month, and for that imbalance of supply and demand to spill over into prices. That appears to have been the story in February.”

 Feb 2019Difference over 2018
Average price$422,57212.3%
Year-to-Date Average Price$417,29210.1%

It has been observed that people are currently moving to Kamloops from the other parts of British Columbia, which should help to keep the real estate market here active. The city tends to see in influx of homes onto the market in spring, and this could ease the situation for buyers in the coming weeks.

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