Well another month has passed and a lot has changed. Stats wise anyways... As expected the local real estate market is showing signs of slowing. This is fairly common in September however the rate in which is has turned down is worth noting, especially when compared to September last year.
A lot plays into this, but the biggest market influencer right now is mortgage rates. Yes those bank of Canada rate hikes are having their desired effect and slowing down the market!
Now that being said rates are still not too bad compared to historical highs, so we ask ourselves... who can benefit from this market slowdown?
BUYERS! Right now is the best buying opportunity we have seen in the last 2+ years. In Cranbrook inventory is up and home prices have slipped. Buyers now have more home options and less buyer competition then before.
Interestingly, when we saw these stats we dug a bit deeper and determined that single family homes were still performing fairly well in Cranbrook. But the apartments, townhomes and duplex's seemed to have the most opportunity for buyers right now.
For example the average sale price was down 38% and month's of supply inventory was up 77% in these housing categories. So if your looking for an apartment, townhome or duplex, now might be a great time!
Onto Kimberley... this was a bit of a mixed bag. We reviewed the different property segments and could not pinpoint figures to one specific housing category like we could in Cranbrook. Inventory is up however sold properties held on, as did sale prices. We expect that if inventory continues to build we may start seeing price decreases, but for now things are staying fairly balanced.
So what's next? Well... no one really knows. We expect a possible additional rate increase from the bank of Canada and this may stall the market a bit further. However we are expecting rates to stabilize in 2023 and as such so will buyer appetite.
Everyday our phones are ringing with investment interest in the Kootenay's. Many continue to leave bigger centers for more affordable living and move to places that provide great recreation opportunities.
We look forward to next months real estate update.
Questions about real estate? Let's chat!
Steve Throndson Real Estate Advisor | Redline Real Estate Group
250.919.3366 | Steve@ThrondsonRealty.com