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Kootenay real estate market remains strong amid provincial slowdown

Increases in number of sales and residential unit prices

The Kootenay real estate market remains strong amid a province-wide real estate slowdown, according to the Kootenay Association of Realtors (KAR).

KAR reports that a total of 364 residential unit sales were recorded by the Multiple Listing Service (MLS) in the month of June, an 8.3 per cent increase from the same month last year.

The average MLS price for residential units came in at $446,785, up 19.5 per cent from June 2020’s average of $373,760.

The total sales volume also increased significantly since last June — up 29.4 per cent from $125.5 million to $162.6 million.

KAR reports that the Kootenay real estate market behaviour has been similar to the rest of the province for most of 2021, with the notable exception being that it has been one of the few regions that did not record a substantial drop in sales in June.

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“Yes, we’ve performed relatively better than other regions, but the performance hasn’t been as per our expectations,” said KAR president Chuck Bennett. “We’ve seen steep growth and rapidly changing market scenarios for most of the last 12 months; something that’s been difficult to comprehend for most of us.

“However, I’m proud that realtors in the Kootenay region have been on top of their business through testing times and have been successful in providing consumers with all the necessary support they need during the entire real estate transaction process. Our sales performance in June 2021, is reflective of an evenly balanced real estate market that continues to be strong and shall remain for the rest of the year as well.”

KAR adds that although 515 new residential listings were added to the Kootenay MLS system in June, the market continues to be “supply starved.”

“It’s true that we are way below our average inventory count at the end of the first 6 months in any given year,” Bennett said. “As we’re in transition of the province re-opening this month, it will be interesting to see how seller’s respond to continued demand for Kootenay real estate. I will not be surprised if we add more listings in the coming days, as once we fully open, more people will be willing to make a move and sellers would be interested in getting good value for their current homes during that phase.

“My prediction for the rest of the year is positive and I’m confident the market will follow it’s seasonal trend and continue it’s spirited run.”

The year-to-date Kootenay MLS residential sales dollar volume in June was $907 million, a whopping 119.5 per cent increase of last year’s first six months, with a 76 per cent increase in YTD residential unit sales, for a total of 2061.

There are currently 1098 active residential listings in the Kootenay region as of July 6.


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About the Author: Paul Rodgers

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