Kootenay Real Estate Market

The Kootenay region's residential real estate market is experiencing a decrease in sales activity due to consecutive interest rate hikes from the Bank of Canada throughout the year.  The composite benchmark price in the region remained relatively stable, declining by 8.3% compared to the historical high in June 2022,  but still 1.1% higher than 2021 levels.  The number of households relocating to the region from other parts of the country has slowed due to a push for a return to office.  However, local buyers are still active and the region's demographic makeup has insulated it somewhat from the effects of interest rate hikes.  Despite an increase in inventory, the market is still experiencing a listing drought and sellers are feeling the effects of the market shift, with buyers having more negotiating power.  Going into 2023, the market is expected to see demand below the 10-year average in the early part of the year as uncertainty from higher interest rates is likely to continue.