Interest rate and inflation uncertainty has hit the Kamloops housing market hard.
In August, the benchmark selling price of a typical single-family home in the city was $687,000, a significant $139,990 decline from May's record-high of $820,990, according to figures from the Association of Interior Realtors.
The benchmark townhouse price was $561,300, down from $569,396 in June.
And the benchmark condominium price was $382,400, off from $403,323 in June.
Now, these prices are still historically high.
After all, the August prices are still 14 to 27% higher than they were at this time last year.
However, that still puts Kamloops prices out of reach of many average wage earners.
But what's attention-grabbing is the trend of plunging prices and sales
Sales plummeted to 101 single-family homes in August, 19 townhouses and 20 condos -- which represents a drop of more than 40% from August 2021.
The scenario makes potential home buyers and sellers uncertain, if not scared, and prompts many to take a wait-and-see stance.
It's now officially a buyer's market in Kamloops, meaning buyers have the upper hand in any transaction and can take their time looking around and negotiating lower prices.
Gone is the seller's market heyday of homes selling quickly for more than asking prices as multiple bidders pushed up prices.
Association of Interior Realtors president Lyndi Cruickshank chooses to put a positive spin on this situation.
"After the unpredictable hot market through the majority of last year, it is nice to see some typical seasonal consumer behaviour returning as we head into this fall," she said.
"This is a welcomed optimistic sign for a potential return of a balanced market to come, sooner than anticipated."
Part of the buying blitz and price escalations of last year and earlier this year was buyers anxiously reacting to a shortage of homes listed for sale.
There are now more homes on the market in Kamloops.
"The market seems to have started turning the corner with respect to overall inventory levels," said Cruickshank.
"With an increase of properties available, this could bode well for sellers and buyers who have been sidelined for much of the year."
