Kelowna’s real estate market heading into 2025 and 2026 looks very different than it did during the rapid run-up of 2021 and 2022. Instead of sharp price spikes and frantic bidding wars, the market has settled into a slower, more measured pace.
Sales activity has begun to edge upward, though growth remains modest. Detached homes are generally holding their value, with average prices hovering near $1.2 million. Condominiums remain more attainable, typically trading around $500,000, while townhomes commonly exceed $700,000. Inventory levels are elevated, giving buyers more options and reducing the pressure to make rushed decisions.
Interest rates are gradually trending downward, which is improving affordability and encouraging some buyers back into the market. That said, the upper end of the market — particularly homes priced above $1.5 million — continues to move more slowly. Overall, Kelowna has shifted into a balanced environment rather than a seller-dominated one.
Long-term demand remains strong thanks to population growth, immigration, retirees, and employment sectors such as healthcare and technology. However, affordability challenges persist, especially for first-time buyers. New rental construction may help relieve some pressure, but entry-level ownership remains difficult.
Neighbourhood preferences also vary. Areas like Lower Mission and Glenmore appeal to families due to schools and parks, while value-focused buyers and investors often look toward Rutland.
For anyone navigating this evolving market, working with a knowledgeable local professional matters. Anthony Shephard of 2% Realty, born and raised in the Okanagan, provides real-time market data and charges a flat 2% commission, not the traditional 6–7% structure. Learn more at www.RealEstateShephard.com
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