OMREB Media Release November 12, 2008

Increased Supply and Decreases Demand Put Pressure on Prices

The Central Zone of the Okanagan Mainline Real Estate Board (OMREB) reported the number of units listed on the Multiple Listing Service® in the Central Zone was up this month by 13% at 1,032 Listings compared to 913 in October 2007.  Total sales dollars of all property types sold on the MLS® in October decreased by 68% compared to October 2007 while the number of units sold decreased by 65% (168 units sold compared to 480 last October).

"Median price trends are showing that prices are edging downward as the pressure of the increased supply and decreased demand take effect.  The current median residential price is down by 8% comparing this October from $466,500 to $430,000," says Brenda Moshansky, OMREB director and REALTOR® in the Central Zone.  "Listings are also down from last month which means that inventory is not rising as fast as it was."

"Some home sellers currently in the market who do not have to sell may take their homes off the market in anticipation of a better market ahead," she adds.  "Home buyer sentiment has become cautious and less urgent so unrealistically priced properties will continue to sit on the market."

"While Canadian consumers confidence is being battered by the distressing US economic news, our market is still in good shape in contrast to the oversupply in the States.  With the slower market, prices have gone down slightly and combined with the low interest rates now available, consumers will soon recognize that this is a good time to buy.  Reduced prices and lower interest rates increase consumer confidence and the demand for housing will begin to pick up."

The Central Zone of OMREB covers the area from Peachland to Lake Country and East along Highway 33 to Westbridge (including the Christian Valley).