High interest rates causing 'speedier seasonal slowdown' in Central Okanagan real estate market

There has been a moderate slowdown in the Central Okanagan real estate market as the high cost of borrowing continues to put off buyers.

The number of sales last month was 13.2 per cent lower than it was in October 2022, according to the Association of Interior Realtors.

Active listings, meanwhile, were down 15.9 per cent compared with last year, while new listings were down 0.4 per cent.

Benchmark prices went in the opposite direction, however, with single-family homes in the region now $1.03 million (up 3.5 per cent compared with last year).

The benchmark price for condos also increased – to $517,300 (up 6.3 per cent) – though for townhouses the price fell by 4.7 per cent to $739,100.

“While we typically do see market activity ease up as the weather cools, the high cost of borrowing seems to be propelling a speedier seasonal slowdown than usual,” said Chelsea Mann, the Association of Interior Realtors president.

“Buyers and sellers are left waiting in the wings despite high demand with the hope of seeing some interest rate relief on the horizon.”

She added: “The impact of qualifying for mortgages seems particularly impeding to rate-sensitive buyers as they struggle to secure financing.

"It is more important now than ever that buyers get pre-approved ahead of their house hunting efforts to ensure their expectations can align with their needs.”