You really have to look to see the improvement, but it's there.
The latest figures from the Association of Interior Realtors show that the latest slight drop in mortgage interest rates has very gently prodded the housing market upward.
"This could likely be a benefit from recent (mortgage interest) rate cuts, which have made borrowing more affordable and sparked increased activity," said association president Kaytee Sharun.
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In July, a total of 362 homes of all kinds (single-family, townhouse and condominium) sold in Kelowna, a modest jump from the 342 sales in June.
Prices also reacted with the July benchmark selling price of a typical single-family home at $1,025,200, up a bit from June's $1,009,200.
The July benchmark for a typical townhouse was $779,200, up fairly significantly from $717,000 in June.
And for condos, the July benchmark was $493,800, a miniscule bump from the $489,300 it was at in June.
For the most part, both sales and prices are a little softer than they were a year ago.
And the new benchmark prices are still off the record highs of over two years ago when the single-family benchmark was $1,131,800, a townhouse $829,000 and a condo $557,700.
The housing market has very much been in a holding pattern as mortgage interest rates spiked and both buyers and sellers decided to wait and see if rates would come down.
Rates are coming down, but not fast enough to spark any dramatic improvement in the housing market.
At the end of 2021, homeowners could get a mortgage with an interest rate as low as 1%.
As inflation surged and mortgage interest rates reacted, homeowners were facing mortgage interest rates as high as 7% last year.
So far this year, the Bank of Canada has cut its rate twice, from its high of 5% to 4.75% and then from 4.75% to 4.5%.
Mortgage interest rates have followed suit with the average five-year fixed rate at 4.91%.
"Real estate activity seems to be trending in a positive direction, with new listings slightly above average and sales picking up after a relatively calm summer market start," said Sharun.
"It is worth noting that properties that are not priced according to the current market climate often take longer to sell and can become stagnant. In a balanced real estate market, consumer confidence thrives when buyers and sellers alike feel assured in their decisions that prices reflect true market conditions."
In Kelowna, it's still a buyer's market, meaning buyers tend to have the upper hand and can generally negotiate down from the list price.
Thumbnail photo credits: Realtor.ca
