Real estate sales in the Kootenay Boundary fell 20.8 per cent last month compared to January 2021, but the average residential price rose 17.8 per cent.
According to the Association of Interior Realtors, 175 homes were sold last month, versus 221 a year ago. The average price was $494,600, up from $419,600.
There were 626 active residential listings as of Feb. 7.
“Our sales performance followed its seasonal trend of having fewer sales per month towards the end of the year,” Kootenay Association of Realtors past president Bruce Seitz said in a news release.
“This drop was quite sharp in December, and we’ve nearly remained at the same level in January. In a way, I’m glad that the market has slowed down a little, as this could bring some much-needed supply and demand balance.
“Having said that, we should acknowledge that we’re quite far from a balanced market in the Kootenay region. Average prices continue to rise, with inventory staying at the same level month-on-month.”
Seitz said it has been “quite some time” since he’s seen a substantial rise in inventory, but he hopes that changes soon.
“I feel that having a slow month in terms of sales might actually be a good thing for the market overall,” he said.
He added that since there are still many buyers but not enough homes to sell, average prices may plateau over the next couple of months.
“In my view, an improvement in inventory and stable average prices at the beginning of spring will be instrumental in driving our market performance for the rest of the year.”
In the last 12 months, a total of 3,938 residential unit sales were recorded by Kootenay realtors, with an average price of $454,813.