Kelowna Real Estate Market Forecast – 2025 Outlook: What Sellers, Buyers, Developers, and Home Builders Need to Know
As we enter 2025, the Kelowna real estate market is poised for an interesting year. With key insights from the Canadian Real Estate Association (CREA) and the British Columbia Real Estate Association (BCREA), we can better understand the outlook for sellers, buyers, home builders, and developers—especially those involved in infill multifamily builds. Let’s break down what the forecasts reveal and how they could impact your plans.
Kelowna Buyer Trends & Market Movement
Kelowna’s real estate market has traditionally benefited from strong out-of-town buyer demand. Nearly 50% of home buyers in Kelowna came from outside the Okanagan, drawn to the region's natural beauty and growing amenities. However, rising home prices in Kelowna over the past few years have created an affordability gap. In 2024, this resulted in a decline in out-of-town buyers, with that number dropping to 35% by the end of the year.
Looking ahead, CREA projects a 4.7% national increase in home prices in 2025. However, BCREA’s 2025 forecast offers a more optimistic outlook for Kelowna’s market, anticipating an 8.6% rise in total sales volume. The BCREA also forecasts that home prices in British Columbia will increase by 4.5%, indicating that while Kelowna’s prices may stay relatively stable, we can expect steady growth as demand increases, particularly for single-family homes.
2025 Real Estate Outlook for Developers & Home Builders in Kelowna
The forecast for 2025 holds promising opportunities for home builders and developers in Kelowna, particularly for those focusing on infill multifamily builds. As the market experiences an uptick in sales and overall demand, there is a significant need for new housing options. With rising home prices, developers are poised to capitalize on the demand for more affordable and efficient housing solutions—especially in urban areas where multifamily homes can offer substantial returns.
The increased demand for housing in Kelowna, coupled with a projected increase in sales volume, creates a favorable environment for developers involved in the construction of townhomes, duplexes, triplexes, and other forms of multifamily infill development. As the city continues to grow, there will be a strong push for high-density housing projects in established neighborhoods, meeting the demand for housing without expanding outward into undeveloped areas.
BCREA’s 2025 Forecast & Market Activity
BCREA’s latest First Quarter Housing Forecast (released January 27th) projects a 14% increase in home sales in 2025 after a relatively flat 2024. With inventory levels returning to healthier levels across BC, they expect the market to absorb this increased activity without a sharp rise in prices. That said, following a year of price stagnation, they anticipate BC’s average home price will rise 4.5% in 2025, driven by renewed housing demand.
For Kelowna, single-family homes typically see higher-than-average price growth, and with Q4 2024 sales surging, BCREA has already revised its 2025 forecast—now predicting an 8.6% increase in total sales volume, up from their initial 6.6% projection.
Key Factors Shaping Kelowna’s 2025 Real Estate Market
While the forecast is positive for Kelowna, there are some external factors to watch for that could impact the market. These include:
- Interest rates: Lower interest rates are expected to ease affordability, giving buyers more purchasing power, which could positively impact home sales and demand.
- Mortgage policies: Recent federal policy adjustments have made it easier for buyers to access higher mortgage amounts, further supporting market stability.
However, challenges still exist, particularly with trade tensions and economic uncertainties, which could affect both local and international buyer demand. As we saw in 2024, external factors can change the trajectory of the market, making it more important than ever for sellers, buyers, and developers to stay informed and agile.
Seller and Buyer Tips in Kelowna’s 2025 Market
For sellers, the current forecast suggests a steady market. Sellers should aim to price their properties competitively, especially as Kelowna’s inventory levels begin to stabilize and more buyers return to the market in 2025. Homes in desirable locations with strong amenities are expected to attract significant interest.
Buyers should be prepared for a market that offers opportunities for growth, but without the rapid price surges seen in previous years. As interest rates remain relatively low and lending conditions improve, buyers may find more favorable conditions for securing a home. Buyers looking to invest in multifamily units or newer developments in Kelowna should pay close attention to new infill projects that cater to the region’s increasing demand for multi-unit residential properties.
Conclusion
Kelowna’s real estate market in 2025 presents a dynamic landscape for buyers, sellers, developers, and home builders. With an expected 8.6% increase in sales volume and a steady rise in demand for multifamily housing, this is a year to watch for growth. Whether you’re looking to sell, buy, or invest in multifamily development, staying informed on the latest market trends and forecasts will be key to making the best decisions in Kelowna’s evolving real estate market.
If you have any questions or would like to discuss how these trends impact your real estate goals, feel free to reach out. Let’s make 2025 a successful year in Kelowna real estate!
Mark and Maddie Coons
Selling Kelowna Real Estate Group
Tel: 778-744-0872
