Foreclosures in Kelowna 2025: What You Need to Know

Foreclosures are a big topic in Kelowna real estate right now. Interest rates are high, some people are losing jobs, and it’s getting harder for families to pay their bills. Buyers and investors in Kelowna are asking two big questions:

• Will there be more foreclosures in 2025?
• Can I find a cheap home in Kelowna or the Okanagan?

Let’s look at the facts for Canada, British Columbia (BC), and zoom in on Kelowna to see what’s happening with foreclosures in 2025.

Canada: Some Problems, But Not a Crisis

Canada’s job market is struggling. In July 2025, the country lost 41,000 jobs. In August, another 66,000 jobs were gone. Many of these were part-time jobs, and some might be seasonal work that ends in the summer. The unemployment rate jumped to 7.1%, the highest in years.

The Bank of Canada’s interest rate is 2.75%. On September 17, 2025, they might lower it by 0.25% or 0.50%. A lower rate could help families pay their home loans, especially those renewing at higher rates.

More people are having trouble paying debts. In July 2025, there were 12,661 debt cases, up 3.8% from last year. Most are “consumer proposals,” where people try to fix debts without going broke. Full bankruptcies are less common.

Only 0.2% of home loans in Canada are late on payments. That’s low compared to other countries. So, there’s some stress, but Canada is not in a big foreclosure mess.

British Columbia: Court Process and Low Late Payments

In BC, late home loan payments are even lower, at 0.19%. That’s one of the best rates in Canada. But when foreclosures happen, they go through the BC Supreme Court. Here’s how it works:

1. The bank asks the court to start.
2. The court gives the homeowner about 6 months to pay.
3. If they can’t pay, the house goes on the MLS® (where real estate agents list homes).
4. Buyers make offers, but the court picks the best one.

Since March 2025, bids must be secret and turned in by 9:45 a.m. on the court day. You have to be there in person. Someone else could outbid you, even if you made a deal with the bank.

BC is losing jobs too. In July 2025, 16,000 jobs were lost, with 7,600 in construction. In August, another 15,700 jobs disappeared, including 10,400 in health care and 10,500 in education. Some of these might be seasonal, like summer jobs. BC’s unemployment rate rose to 6.2% in August.

Debt cases in BC are up. In July 2025, there were 1,356 cases, an 8.7% increase from last year. Over 12 months, BC had 14,638 debt cases, up 3.2%. Most are proposals, not bankruptcies.

Foreclosures take time. If someone stops paying their loan, the bank waits 2-3 months before going to court. The whole process can take 6-12 months or more. Many banks work with homeowners to fix things before the house is listed for sale.

Kelowna & the Okanagan: More Foreclosures, But No Big Problem

Now let’s talk about Kelowna real estate and Okanagan foreclosures. In August 2025, there were 99 active foreclosure listings (homes for sale because of foreclosure) and 15 sold that month. That’s more than recent years, but let’s look at the past to understand.

Here’s a simple table showing foreclosure data for key years:

Over the past 10 years (2015-2024), the average was about 111 active foreclosure listings and 13 sales per month. The highest year was 2015, with 280 listings and 32 sales per month. That was a tough time with more economic problems.

In the last 5 years (2020-2024), foreclosures were low, averaging 59 listings and 7 sales per month. This was during a hot housing market when few people lost their homes. In 2021-2022, listings dropped to around 40, and sales were as low as 1-2 some months.

In 2025, we’re at 100 listings and 12 sales per month (through August). That’s higher than the 5-year average but close to the 10-year average. It’s much lower than the 2015 peak. This shows things are getting back to normal, not a crisis.

A local example is the Promontory project in Kelowna, planned for 120 townhouses. The developer, Cynterra Group, is having money troubles, which shows stress in building new homes. But foreclosures are still a small part of Kelowna’s housing market, where thousands of homes are sold each year.

What This Means for Kelowna Buyers

Foreclosures might be cheaper, but they come with risks:

• Homes are sold “as-is,” so you get no fixes if something’s broken.
• Someone might still live in the house.
• Another buyer could outbid you in court.

Work with a Kelowna real estate agent who knows foreclosures to avoid surprises.

What This Means for Kelowna Sellers

More foreclosures could make some home prices look lower (called “comps”). But they’re still rare, so most Kelowna home sales are regular listings.

My Take: Stay Smart and Stay Calm

Foreclosures in Kelowna and BC are going up a bit, but we’re nowhere near the tough times of 2015. Possible rate cuts in September 2025 could help ease the pressure. For buyers, foreclosures might be a chance to save money, but you need to know the risks. For sellers, foreclosures aren’t a big worry yet—your home’s value is still strong.

Want to stay ahead in Kelowna’s market? Work with a local real estate expert to make the best move.

Foreclosures in Kelowna and across BC are going up a little, but they are still a small part of the real estate market. For buyers, this can be a chance to find a good deal. For sellers, it’s not a big risk yet — most homes are still selling the regular way.

👉 Want to see all the current foreclosure listings in Kelowna and the Okanagan?
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If you’re thinking about buying or selling in Kelowna, let’s talk. I can guide you through the process and help you make the best move in today’s market.

📍Mark Coons| Selling Kelowna Real Estate Group | eXp Realty
📞 Call/Text: 250-778-0872
📧 Email: [email protected]
🌐 www.sellingkelownarealestate.com