It's still a buyers' market in real estate, according to the second quarter report issued by the Kootenay Real Estate Board, but the market is slowly improving and moving towards stability.

MLS (Multiple listing Service) statistics to the end of June 2009 show a 27 per cent decline in residential detached home sales across the Kootenays for the first half of the year compared to the same period in 2008.

But detached home sales were only down one per cent in June 2009 compared to June 2008, which indicates the market is strengthening, according to the quarterly report issued by the Real Estate Board.

This is a good sign and indicates an improving market, says Board Chairman Andrew Smith.

"The year to date numbers is improving slightly each month as consumers are slowly entering back into the Kootenay Real Estate Markets. While the real estate markets are still showing unit sales declines, the general extent of those declines is lessening as we go through each month of 2009.

"While still classed as a Buyer's market due to the current high MLS(r) Listing Inventory and low number of sales, the trend is starting to indicate we are moving towards a more balanced real estate market," Smith says.

Several factors are responsible for the improving picture, he says. "Local buyers are aiding the start to the comeback of our local real estate markets. Withy mortgage interest rates remaining at historic low levels and MLS property inventories high, buyers have the benefit of property selection and favourable mortgage financing.

"The combination of these two factors is creating interest amongst home buyers that has started to shift our real estate markets back towards positive ground," Smith says.

The June 2009 average price of a single detached home sold in the city of Cranbrook was $308,730 compared to $355,394 in June 2008, a drop of 13 per cent based on 44 sales. June 2009 sales in the rural lakes area outside of Cranbrook averaged $396,300, down seven per cent from the June 2008 average of $427,250 but based on only four sales.

In Kimberley, the average June 2009 selling price for a single detached home was $228,625 based on 23 sales compared to an average sale price of $249,986 in June 2008.

The average price of a single detached home varies widely throughout the Kootenays and this is reflected in the June 2009 figures. Homes are most expensive in Fernie where a dozen homes sold in June this year at an average price of $408,775. In Invermere, four detached homes sold in June 2009 at an average price of $372,875 and in Nelson eight detached houses sold in June at an average price of $334,612

The best home bargains in the Kootenays can be found in Trail where seven detached houses sold in June this year at an average price of $141,357 and Canal Flats where two homes sold in June for an average price of $135,000. But prospective buyers must keep in mind that when sales are low in any particular month it distorts the average house price figure.

But overall, things are starting to look up, says Kootenay Real Estate Board Executive Officer Ian Mason. "Inventory levels are high and mortgage rates are low which is causing many potential buyers to think it's time to get back in the market."

Mason says prospective home-buyers are starting to realize that prices have fallen as far as they're likely to go and now is the time to start reaping the advantages of home ownership. "What we're seeing now is more first-time buyers and buyers moving up accessing the market."

Despite this, it's still a buyers market, but industry analysts think this could change by the first quarter of 2010 when economic recovery is expected to be fully in place and the benefits of the Olympics stat to affect the markets, Mason says.

This can already be seen in the Vancouver real estate market which took off in June this year, recording its second highest June real estate sales total ever. Sales of detached homes and apartments increased 75.6 per cent in June to 4,259 compared to only 2,425 sales in June 2008.

The June 2009 sales level in the province's largest city was just short of the record-breaking year of 2005 when 4,333 units sold in Greater Vancouver.