Home values in the Central Okanagan increased by 24% in December 2021 compared to December 2020. But sales fell by almost a third, to $447,200. The decline in December sales was mirrored throughout the province. The B.C. real estate association reported a drop of 41 per cent in the number of listings for homes and condos. The region sold only 6,179 units in December, a decline of 25 per cent over the previous year.
Overall, Okanagan real estate sales grew by 25 per cent in 2021, with the South and Central Peace River Regions leading the way. Meanwhile, sales in the South Peace River region dropped by forty per cent. While the province experienced an increase in sales, housing inventory decreased by nearly 40 per cent, which may result in a slower pace of sales for some years. The figures aren’t necessarily a cause for alarm.
Despite the decline in inventory, home prices in the South Okanagan have remained high compared to the North. The South Okanagan region experienced 62 per cent growth in the number of sales compared to the same period last year. However, the number of active listings remained unchanged, and monthly sales declined by 18.7%. The composite average price for single-family homes in August was $616,000, down from $710,000 in August 2010. The variance is large.
While home prices increased in the South Okanagan, prices in the Central and South Okanagan were only slightly higher. While new listings were down by 30% and average sales were down by 25 per cent in August, prices in both areas are up in both Septembers. The numbers are encouraging, especially for the region. The South Okanagan is considered a recreational hotspot. With its four-five thousand residents, Penticton is one of the biggest regional retail and service centers. It has several luxury homes located in the hills, as well as lake-facing condo developments.
As the economy continues to improve, the prices of homes have increased. The average price of a detached house in August was $676,374 – a year-over-year increase of 34.7%. The median price of a condo in August was $487,540. The market continues to increase. Ample inventory is important in this region because the demand is so high. But prices are not the only factors driving home sales.
The market remains hot and buyers are increasingly purchasing homes in Kelowna. The average price of a single family home in the Kelowna area was $1,143,647. There was no increase in the price of a condo in South Okanagan. Those looking for a rental home could find one for under $550,000. But in the south, prices were up only six per cent.