Kelowna Real Estate Market Update – Q2 2025: What Buyers and Sellers Need to Know Right Now

The Kelowna real estate market is shifting — again. But unlike the wild swings we saw in 2021 and 2022, the Q2 2025 market is quieter, more thoughtful, and deeply divided by product type. Whether you're looking at apartments, townhomes, or single-family homes, the patterns are clear: inventory is rising, sales are slowing, and strategy matters more than ever. In this detailed market update, we break down what's really happening in each segment, explain why the data matters, and show you where the real opportunities still exist — especially for smart buyers, strategic sellers, and move-up families looking to make a smart trade.

Apartment Market Analysis – Q2 2025

Inventory is Rising — and It's Breaking Away From Historic Norms

Apartment inventory in Kelowna is not just growing — it's breaking away from both the long-term average and seasonal norms. In past years, we’ve seen apartment inventory fluctuate predictably throughout the spring and summer markets. But this year, active listings are continuing to climb, and there’s no sign yet of a summer slowdown.

This pattern mirrors what’s been happening in major urban centers like Toronto, where oversupply and falling rents are causing would-be investors and first-time buyers to sit on the sidelines. While Kelowna hasn’t seen the same extremes as Toronto, the gap between inventory and demand is widening. More condos are hitting the market, but fewer buyers are stepping up — especially those affected by rising ownership costs or tighter lending rules.

Months of Inventory Is At Record Levels

The Months of Inventory (MOI) for apartments in Kelowna is now floating at 10 months, which is 4 months above the 10-year average and well beyond what’s typically considered a balanced market.

To put this in perspective, a balanced apartment market in Kelowna usually sits around 5–6 months of inventory. Anything over 8 months tips strongly in favor of buyers. With MOI at 10, it means that if no new apartments were listed, it would take 10 months to sell everything currently on the market — assuming sales continue at their current pace.

This is a clear sign of oversupply, and unless we see a pickup in buyer activity or a slowdown in new listings, prices in some areas may start to come under pressure.

Dollar Volume Is Holding — But Why?

Despite all the extra inventory and slower sales, the total dollar volume of apartment sales hasn’t dropped off as sharply as expected. This might seem surprising, but there’s a simple explanation: prices have risen significantly over the past few years, and many of the apartments being sold are still transacting at or near peak levels.

In other words, even though fewer homes are selling, those that do sell are doing so at higher price points, keeping the total dollar volume somewhat steady. However, this number alone can be misleading. If the current inventory lingers longer and seller motivation increases, we may see downward pressure on both average prices and dollar volume in the months ahead.

Sales Are Still Below Average — and at 10-Year Lows

Perhaps the most telling stat of all is the sales volume. Apartment sales have yet to crack 100 units in a single month in 2025, making this one of the slowest years for condo transactions in over a decade.

Even in slower spring markets in the past, sales would typically recover by May or June. But in Q2 2025, sales remain well below the long-term average, confirming that buyer confidence is still shaky. Many buyers are either waiting for price drops, reassessing affordability, or delaying their purchase to see how interest rates or economic headlines shake out.

The bottom line: we have more supply, slower absorption, and buyers in wait-and-see mode — all signs of a market that still hasn’t found its new normal.

Thinking about a condo or apartment?
View current listings in Kelowna — updated daily with new inventory.

Kelowna Townhome Market – Q2 2025 Breakdown

Active Listings Are Growing – But More Supply Is Still Coming

Inventory for townhomes in Kelowna is rising. This isn't a surprise. The townhome market is part of what’s often called “missing middle” housing — homes that are bigger than condos but smaller (and more affordable) than detached houses.

Since 2016, the City of Kelowna has focused on this type of housing. In 2016, pre-zoning changes allowed many lots to support 4plex development, and in 2024, Bill 44 rezoned over 26,000 lots across the city to allow even more housing density. The important thing to note: most of that new supply hasn’t even hit the market yet.

So the townhome inventory we’re seeing now is only the beginning. More townhomes are expected over the next 12–24 months, which could continue to increase supply even if buyer demand holds steady.

Sales Pulled Back in June — Is the Surge Over?

After a strong May (driven partly by the new GST rebate on new home purchases), June sales dropped off. This early summer pullback came earlier than expected, breaking from the usual seasonal trend, where demand typically holds into July before slowing down.

What this could mean:
Some buyers may have rushed in during May to take advantage of the rebate, while others are now choosing to wait. It’s possible that higher inventory, rising costs, or fear of price drops is causing buyers to pause. Or it may just be a blip in the trend. We’ll need to watch what happens through July and August to see if this decline continues or levels out.

Either way, the early drop-off could signal buyers are feeling more cautious.

Months of Inventory Still Shows Balance — For Now

Right now, months of inventory (MOI) for townhomes is sitting around 7 months. That’s higher than usual, and reflects the drop in sales from June. But it’s still considered a balanced market — meaning there’s enough supply for the number of buyers.

This makes the townhome market unique. Unlike the detached home or apartment markets — which are both trending toward buyer territory — townhomes are still in a range where neither side has full control.

If sales slow down again in July and August, though, MOI could climb higher, and that could start to shift power more toward buyers.

Price Growth Over Time Is Keeping Dollar Volume Stable

Even with fewer sales in June, the total dollar volume of townhomes sold is still near the 10-year average. That’s because prices for townhomes have risen so much over the past decade. This means fewer sales are still generating a healthy amount of transaction volume.

For sellers, this is good news — even in a slower month, you’re still selling at a much higher price than you would have just a few years ago. For buyers, it’s a reminder that townhomes have become more valuable over time, and that might continue as more people choose them over detached homes.

Thinking about a townhome? Take a look at ones built after 2020 here. 

Single Family Home Market – Q2 2025 Breakdown

Inventory Levels Are Near Record Highs

Right now, Kelowna’s single-family home inventory is sitting at some of the highest levels we’ve seen in over a decade. Listings have leveled off for the summer and are currently sitting about where they were in July 2024, which means the market is still flooded with options for buyers.

Why so much inventory? A big reason is Bill 44, which rezoned over 26,000 lots across the city in 2024. This led to a wave of land assemblies, where property owners bundled multiple lots together to prepare for future development. But many of those plans have now stalled out. Developer activity has slowed to a crawl, especially with today’s high building costs, labor shortages, and soft demand.

Some developers are still looking ahead and trying to line up land for the next few years — but maximizing land value today is tougher than it’s been in over 10 years.

Sales Are Below Normal — But Following a Stable Pattern

Even though we’re seeing fewer sales than usual, the good news is that sales volume is following the normal seasonal pattern. That means more homes sold in spring, and activity has held fairly steady into early summer.

While we’re still below the 10-year average for number of sales, homes are moving — and that’s important. After everything the market has gone through in the past five years (interest rate hikes, COVID, inflation, and rezoning), a return to seasonal rhythm shows buyers and sellers are still finding common ground.

Months of Inventory Still Signals a Buyer’s Market

At the end of Q2, Kelowna has about 8 months of inventory for single-family homes. That’s 4 months above the 10-year average and very close to all-time highs. Normally, a balanced market sits around 4 months.

What’s different this time is that MOI is moving in sync with seasonal trends. That means while inventory is high, it’s not wildly out of step — it’s behaving as expected, just at a higher level. This suggests the market is functioning, but leaning heavily in favor of buyers.

Total Dollar Volume Is Still High — Thanks to Home Price Growth

Even with slower sales, the total dollar volume for single-family homes sold in Q2 2025 is still above the 10-year average. That’s because prices have gone up a lot in the last 5–10 years, so even fewer sales are bringing in more total dollars.

This is a good reminder that high prices don’t always mean strong demand. In fact, it’s likely one reason some buyers are sitting back and waiting — hoping that prices will start to drop if inventory keeps rising and homes sit longer.

Looking for a single family home? this is your opportunity right now and will continue to hold value over the long term.  Start your search here.

The Big Picture: Kelowna’s Housing Market in Q2 2025

Sales Are Low — But Still Following the Usual Pattern

Overall real estate sales in Kelowna are at some of the lowest levels we've seen in the past 10 years. But there’s a silver lining — even with everything going on in the world (higher interest rates, rising costs, and global uncertainty), the market is still following seasonal trends.

That means buyers and sellers are still active, just more cautious. Sales grew into the spring like they usually do, and June followed a normal seasonal pattern — just at a lower level. That kind of consistency shows the market is still functioning, even if it's slower.

Inventory Is High — And That Means More Choices

There’s no sugarcoating it: Kelowna has a lot of homes for sale right now. Whether you’re looking at detached homes, townhomes, or apartments, inventory is up across the board.

Think of it like shopping at the grocery store. If there are only two kinds of ketchup, it’s easy to choose. But if there are ten different brands, you hesitate — it’s harder to decide. That’s what’s happening in real estate. Buyers have more options, which makes them slower to commit. Sellers need to stand out or risk getting passed over.

Months of Inventory Mirrors Last Year — For Now

Right now, the months of inventory (MOI) is similar to where it was in summer 2024 — high, but not spiking. This tells us the market still has too many homes for the number of active buyers.

What we’re watching now is whether inventory continues to rise through the fall like it did last year. In 2024, inventory kept building into October and November, which pushed prices down in certain segments. If 2025 follows the same path, we could see more pressure on sellers — especially in areas with slower sales and lots of competition.

Dollar Volume Is Holding — But Mostly Because of Past Price Gains

Even though the number of homes being sold is low, the total dollar volume of sales is still holding up okay. That’s because home prices are still high after years of growth. In other words, fewer homes are selling, but those that do sell are still expensive.

This can give a false sense of strength in the market. The reality is, volume is up because of price inflation — not demand. If inventory continues to rise and more sellers get motivated, we could see those average prices start to shift in the months ahead.

Final Word: Kelowna Is a Market That Demands Strategy — But Still Offers Opportunity

The Kelowna real estate market in 2025 isn’t fast or frantic — it’s smart. Whether you’re buying, selling, or both, success in today’s market comes down to having a clear plan and making thoughtful decisions. Bidding wars are rare, and the pressure to act instantly is mostly gone. But that doesn't mean there’s no opportunity — it just means the approach needs to be different.

Here’s what matters most right now:

• Sellers need homes that are clean, show-ready, and priced in line with today’s expectations — not last year’s market.

• Buyers have more selection and more time to think, but the best homes still go quickly. When the right one comes up, it’s important to be ready.

• Move-up buyers are in a unique position. You may sell for less than in 2022, but you’ll likely save more on your next purchase. That trade-up math still works in your favor.

And here’s what sets Kelowna apart: even in a slow market, this city continues to attract attention.

Kelowna’s natural beauty, four-season lifestyle, and outdoor recreation make it a consistent draw for buyers from outside the region. Whether it's people relocating from the Lower Mainland, Alberta, or even Ontario, Kelowna has something other markets don’t — mountains, lakes, and lifestyle.

It’s also a city on the rise in business and innovation. According to Maclean’s, Kelowna is one of Canada’s top places to watch for tech industry growth, already contributing over $1 billion to the local economy. This long-term potential continues to bring attention, investment, and talent into the region — and it’s something smart buyers should keep an eye on.

If you're thinking about making a move, the best step you can take is to understand your position in this market. Whether you're just getting started or trying to time your next move, a strategy-focused approach will make all the difference.

Let’s build that plan — and help you make your next step the right one.

Ready to Make a Smart Move in This Market? Let’s Talk Strategy.

The Kelowna market isn’t guessing anymore — it’s separating those who hope from those who plan. If you’re serious about buying, selling, or investing, don’t wait for the headlines to tell you what’s happening. Let’s break down your options, run the numbers, and build a strategy that actually works in today’s market.

Call or text us now at 778-744-0872
Email us at [email protected]
No pressure, just the facts.

We’ll help you move forward with confidence.

Mark Coons
Personal Real Estate Corporation

Selling Kelowna Real Estate Group