Kelowna Real Estate Market Update (2026):
The Okanagan Market Is Finally Turning Around — And What Comes Next
After reviewing the Q4 2025 market report from the Association of Interior Realtors, there’s finally a shift worth paying attention to.
After three straight years of declining sales, the Okanagan real estate market is showing real signs of recovery.
Not a boom.
Not a bubble.
A measured, healthier market.
This guide breaks down what’s actually happening—and what it means if you’re:
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Buying a home in Kelowna
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Selling a home in Kelowna
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Building or planning an infill multifamily project
Kelowna & Okanagan Real Estate Market Snapshot (2025)
Let’s start with the big picture numbers.
In 2025, the Okanagan recorded:
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8,475 residential sales (⬆ 8.7% from 2024)
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$6.5 billion in total sales volume (⬆ 12.3%)
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A balanced market, not tilted heavily toward buyers or sellers
This is the first year of growth since the market cooled in 2022. Buyer confidence is slowly returning—but cautiously.
Is the Kelowna Real Estate Market a Buyer’s or Seller’s Market?
Right now, it’s neither.
The sales-to-new-listings ratio has hovered between 40–45%, which places Kelowna firmly in a balanced market.
What a Balanced Market Means (in plain English)
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Buyers can negotiate again
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Sellers still have real demand
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Pricing and strategy matter more than hype
This is a healthier environment than the extremes we saw during the pandemic years.
Not All Property Types Are Recovering the Same Way
This is where broad headlines fall apart.
Property Type Performance
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Single-family homes → Sales up
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Townhomes → Sales up
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Condos & apartments → Sales still down
👉 Your property type matters more than the overall market.
This matters a lot for:
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Condo sellers
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Buyers choosing between condos and townhomes
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Developers planning infill or multifamily projects
Kelowna Inventory: Why the Headlines Don’t Tell the Full Story
On paper, inventory looks stable.
Active listings in December 2025 were only 0.5% higher than December 2024.
But what matters is what kind of inventory is sitting on the market.
A Large Share of Current Listings Includes:
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Condos and apartments (slower absorption)
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Land assembly properties waiting for rezoning or development
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Tenant-occupied properties
Tenant-occupied listings are now at their highest level since 2017, as landlords exit due to:
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Speculation & vacancy tax
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Flipping tax
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Short-term rental restrictions
What This Means for Buyers in Kelowna
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If you’re shopping for single-family homes in good areas, supply is tighter than it looks
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If you’re buying a condo or investment property, you have strong negotiating power
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Buyers can take time, but must be smart about financing and due diligence
This is one of the most balanced buyer environments Kelowna has seen in years.
What This Means for Sellers in Kelowna
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Buyers are back—but they’re informed and cautious
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Pricing based on 2021 expectations won’t work
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Condos and tenant-occupied homes need sharp positioning
Homes that are priced right and well-presented are still selling. The rest sit.
What This Means for Developers & Infill Builders in Kelowna
For builders focused on small-scale multifamily and infill projects, the market shift is important.
Key Signals Developers Should Watch:
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More land assemblies lingering on the market
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Higher investor exits, creating acquisition opportunities
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Slower condo absorption = product mix and pricing matter more
The next phase of the cycle will reward:
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Well-located projects
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End-user-focused design
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Conservative underwriting
Speculation is out. Execution is in.
What’s Coming Next: 2026–2029 Outlook
1. Indigenous Title & Lending Caution
Recent court decisions have made lenders and insurers more cautious—even in regions with no active disputes.
Result:
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More conditions
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Longer approvals
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Less risk-taking
2. Investor Exit Is Reshaping Supply
Landlords are selling at the highest rate since 2017, reshaping:
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Condo pricing
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Rental availability
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Buyer leverage
This creates opportunity—but only with proper planning.
3. Regional Differences Matter More Than Ever
The Okanagan experienced its first population decline since 2001, losing 6,590 residents in 2025.
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Kelowna → expected recovery by 2029
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Some surrounding areas → recovery pushed into the 2030s or later
👉 Location matters more than timing the market.
Should You Buy, Sell, or Build in 2026?
If You’re Buying
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You have leverage again
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Condos offer the strongest negotiating power
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Financing and due diligence matter more than speed
If You’re Selling
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Buyers exist—but strategy matters
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Pricing must reflect today’s market
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Condo sellers need realistic expectations
If You’re Developing
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Land opportunities are increasing
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Absorption risk is real
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Conservative, well-planned projects will win
Final Takeaway
The Kelowna real estate market is moving in the right direction, but the recovery will be:
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Gradual
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Uneven
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Data-driven
No wild swings.
No easy money.
Just steady progress—which is exactly what this market needs.
If you want to know what this means for your home, your plans, or your project, reach out anytime.
Mark & Maddie
Selling Okanagan Group | eXp Realty Kelowna
📞 778-744-0872
📩 [email protected]
