Kelowna Housing Market Update: Sales Inch Up but Prices Keep Sliding — What It Means for Buyers and Sellers
The Numbers Don't Quite Add Up — And That's the Story
Kelowna's housing market keeps doing things its own way — and February's numbers are a perfect example of why this market remains one of the more confounding in the province right now.
According to the Association of Interior Realtors, which represents about 2,600 members across our region, February saw a welcome uptick in the number of homes changing hands. Single-family homes in Kelowna posted 115 sales for the month, up from 91 in January. Townhouses climbed from 36 to 45 sales, and condominiums rose from 55 to 74. On the surface, that's encouraging momentum heading into spring.
But here's the twist: prices didn't go along for the ride. The benchmark selling price for a typical single-family home actually dipped slightly to $1,056,600 from $1,060,300 in January. Townhouse benchmarks slipped to $671,300 from $678,400. And condo benchmarks dropped more noticeably, falling to $472,000 from $504,600 the month before.
In a conventional market, more sales activity usually signals rising prices. Kelowna is defying that pattern. So what's going on?
Why the Kelowna Housing Market Is in a Holding Pattern
To understand what's happening right now, you have to look at the bigger picture. Home sales in Kelowna have fallen roughly 40% from the heights of the post-pandemic boom back in 2021. Prices have also retreated — single-family homes are down about 6% from the April 2022 peak of $1,113,000, while condos are sitting about 16% below their record and townhouses about 18% off their all-time high.
The culprit? A combination of inflation, higher mortgage interest rates over the past few years, and a persistent perception among buyers that homes remain unaffordable. Many prospective buyers have been sitting on the fence, hoping either for prices to fall further or for rates to ease enough to make monthly payments manageable.
The homes that are selling right now tend to belong to what the industry calls "motivated sellers" — people moving because of a divorce, a job transfer, or because they've already purchased another property. These sellers price to move, not to maximize, which is pulling benchmarks down even as transaction volume ticks up slightly.
Kadin Rainville, the Association of Interior Realtors' president, described the February numbers as a "modest bounce-back" and noted that sales returned to a more normal pace after a sluggish January — though still sitting just below average levels. The message there is that we're stabilizing, not surging.
What This Means If You're Thinking About Buying or Selling in Kelowna
If you're a buyer, this is actually worth paying close attention to. You have more negotiating power in today's Kelowna housing market than you've had in years. Motivated sellers mean you may be able to negotiate not just on price, but on conditions and terms too. And with benchmark prices still well below their 2022 peaks, you're entering at a meaningfully different price point than buyers who jumped in at the height of the frenzy.
That said, inventory remains restrained. The market isn't flooded with choices — construction activity has slowed considerably, which we'll get into in an upcoming post. So while affordability challenges persist, so does limited supply. If you've found the right property, don't assume you have unlimited time to decide.
For sellers, the key right now is realistic pricing. Overpriced listings are sitting. Properties that come in sharp, with good presentation, are the ones generating activity. If your life circumstances are creating a reason to move — whether that's an upgrade, a downsize, or a relocation — this market still offers solid opportunities, particularly for those who need the equity they've built up over the last decade.
Working with an experienced local agent matters more right now than it has in some time. Understanding the nuance of what's moving in which Kelowna neighbourhoods — whether that's Upper Mission condos, townhomes in Glenmore, or detached homes in Rutland — is what separates a smooth transaction from a stressful one. As someone who has been working in the Kelowna and Central Okanagan market for years, I can tell you that the details at the street and neighbourhood level matter enormously in an environment like this one.
Looking Ahead: The Road to Spring
Spring is traditionally when the Kelowna housing market finds its stride. More listings typically come to market, buyer activity picks up, and the pace of transactions accelerates. Whether 2026 delivers a genuine spring rebound or another cautious shuffle remains to be seen — a lot depends on what happens with interest rates over the coming months and how consumer confidence evolves in a broader economic climate that has its own set of uncertainties.
The Association of Interior Realtors is expressing cautious optimism, hoping that improved affordability conditions and stable rates will motivate buyers who've been waiting on the sidelines to finally make their move. Time will tell whether that hope translates into action. But one thing is clear: if you've been waiting for a sign to start a serious conversation about buying or selling in Kelowna, the current market window is worth exploring.
Have questions about what this means for your home or investment?
Mark Coons, BBA, CE
REALTOR® | eXp Realty Kelowna
Team Lead, Selling Okanagan Group
Relocated to Kelowna in 2018
📞 778-946-6454
📩 [email protected]
