Crikey.
Year-end numbers from the Association of Interior Realtors reveal some startling trends for Kamloops real estate.
Last month, the benchmark selling price of a single-family home in Kamloops was $625,700.
That's still expensive, but it's a $195,290 plunge from the record high of $820,990 in June 2022.
No one likes to know their home is worth $195,000 less than it was just a half a year ago.
Last month, 63 homes of all kinds (single-family, townhouse and condominium) sold in Kamloops, a 55% plummet from December 2021 when the market was strong.
In the first six months of last year, prices and sales peaked in Kamloops in a post-pandemic buying frenzy that saw people scramble to buy homes in desirable locations.
In the second half of the year, the bloom went off the rose as raging inflation, higher mortgage interest rates and battered consumer confidence saw sales crash and prices slide.
Which brings us to now.
The Association of Interior Realtors' early January statistics release is not just a summary of December 2022 activity, but a year-end wrap up that provides a broader viewpoint.
"We began to see market activity (and prices) moderate amid consistently rising interest rates imposed by the Bank of Canada," said association president Lyndi Cruickshank.
"The high interest rates will continue to subdue market activity (and prices) in the coming months."
Kamloops is still unaffordable for most and remains one of the most expensive cities in BC to buy a house.
After all, Kamloops is still a sought-after destination to live, work, play and invest.
But, high prices and the softening economy combined to put the brakes on in 2022, a trend that will continue into 2023.
In December, the benchmark selling price of a typical townhouse in Kamloops was $512,400, off $57,000 from the record-high of $569,400 in the spring of 2022.
Last month, the benchmark selling price of a typical condominium in Kamloops was $360,400 down from the record high of $403,323 in June 2022.
In this type of market, only homeowners who really need to sell are putting their house on the market because they know it's slow and that their house will fetch less than it would have just seven months ago.
While prices are down, they aren't down enough to be a bargain to potential buyers who are facing $626K houses, half-a-million-dollar townhouses and $360K condos with higher interest rates and higher mortgage payments.
"Looking to 2023, we anticipate inventory will continue to accumulate, as compared to recent years, with all signs pointing to more balanced conditions with buyers and sellers benefitting equally," said Cruickshank.
"Real estate professionals will continue to support buyers and sellers as they navigate the real estate market."
