BC Home Sales Struggle Across All Regions in February
The Province-Wide Picture: BC Real Estate Starts 2026 on Its Back Foot
February's real estate numbers are in for British Columbia, and if you're looking for a reason to feel optimistic about a quick market recovery, you're going to need to look harder. The BC Real Estate Association has released its latest provincial data, and the story is one of persistent struggle across virtually every corner of the province.
Just over 4,500 residential units were sold across BC last month, a decline of nearly 10% compared to the same period last year. The average residential price on the Multiple Listing Service also slipped 2.9% to roughly $932,000. Total dollar sales volume came in at $4.21 billion — a drop of 12.3% year-over-year. These aren't rounding errors. They represent a market that continues to feel the weight of elevated prices, borrowing costs that remain historically high by recent standards, and a buyer pool that isn't yet convinced conditions are right to make their move.
The sharpest declines were in communities like Powell River (down nearly 35%), Chilliwack (down 31%), and the Kootenays (down 29%). Even Greater Vancouver, which tends to carry the provincial numbers due to sheer volume, saw just over 1,600 unit sales — a near-9% decline from a year ago.
What This Means Specifically for Kelowna and the Central Okanagan
While the BC Real Estate Association report covers the whole province, what matters most to people in Kelowna and the broader Central Okanagan is what those numbers mean at home. And the context here is worth unpacking carefully.
The Kelowna housing market has been tracking the broader provincial trend — sales volumes down meaningfully from the post-pandemic highs, benchmark prices easing gradually but not dramatically from their 2022 peaks. The February data released by the Association of Interior Realtors showed a modest pickup in transactions from January, which is encouraging, but the overall picture remains one of a market operating well below its full potential.
One thing that sets Kelowna apart from some of the harder-hit BC communities is the underlying demand story. This city continues to attract people — from the Lower Mainland looking for more space and value, from other provinces drawn by lifestyle and affordability relative to coastal markets, and from international buyers and investors who see the Okanagan as one of Canada's most compelling lifestyle destinations. That demand hasn't evaporated. It's been suppressed by affordability and rate concerns, but it's still there.
The question for our market in 2026 is whether improving affordability conditions — if they materialize through rate cuts or price adjustments — will be enough to unlock that pent-up demand before the spring market peaks. Based on what I'm seeing with clients right now in Kelowna, West Kelowna, Lake Country, and Peachland, there's genuine interest from buyers who've been waiting for the right moment. The conditions that would bring them off the fence aren't far off.
Interest Rates and the Bank of Canada: The Variable Everyone Is Watching
The BC Real Estate Association's chief economist noted publicly that the industry is hoping improved affordability conditions and stable rates will motivate prospective buyers to enter the market and boost sales for the rest of 2026. That's a reasonable and widely shared hope.
The Bank of Canada has its next rate decision coming up shortly, and the broader economic backdrop — including a weaker-than-expected Canadian jobs report showing 84,000 positions lost in February (with British Columbia shedding 20,000 of those) — gives the central bank reason to consider further rate reductions to support growth. Kelowna's local unemployment rate sits at 6.3%, which is below the national rate of 6.7%, suggesting our market has some resilience even in a challenging economic environment.
Lower rates matter enormously for housing affordability and market activity. Even a quarter-point cut can meaningfully shift the calculus for buyers who are right on the edge of qualifying for a purchase. And in a market like Kelowna, where a one-bedroom condo is benchmarked around $472,000 and a single-family home sits near $1,056,600, those marginal improvements in borrowing costs can be the difference between sitting out and stepping in.
What Smart Buyers and Sellers Should Be Doing Right Now
If you're watching this market and trying to figure out your next move, here's the honest assessment: we're in a window that favours patient, well-prepared buyers. Prices have come down from their peaks, sellers are motivated, and competition for well-priced properties isn't as fierce as it was during the pandemic boom. That combination doesn't last forever.
For sellers, the critical message is the same one that's been true throughout this cycle: pricing matters more than anything else. Overpriced homes are accumulating days on market and ultimately selling for less after multiple price reductions. Homes that are priced accurately from the start — based on what the market is actually doing, not on what sellers hoped the market would do — are moving.
Whether you're buying or selling in the current BC market, getting the strategy right requires staying close to the local data. Provincial averages are a useful backdrop, but the Kelowna market has its own rhythms, its own neighbourhood dynamics, and its own seasonal patterns. Understanding those nuances is exactly what I focus on every day for my clients across the Central Okanagan.
The province-wide numbers tell us this market is still working through a difficult adjustment period. But within that environment, there are real opportunities — for buyers building equity at prices below recent peaks, and for sellers who are motivated and realistic about what this market will bear.
Have questions about what this means for your home or investment? Contact us:
Mark Coons, BBA, CE
REALTOR® | eXp Realty Kelowna
Team Lead, Selling Okanagan Group
Relocated to Kelowna in 2018
📞 778-946-6454
📩 [email protected]
