Is the Kelowna Real Estate Market Bouncing Back? January 2025 Kelowna Real Estate Market Update
The Kelowna real estate market had a sluggish year in 2024, with sales volumes dipping to levels not seen since the 1990s or the 2008 financial crisis. Yet, despite the challenges, home prices held strong—and even rose in certain segments. This begs the question: Are we at the bottom of the market? Let’s explore the numbers and trends to uncover what’s ahead in 2025.2024 in Review: A Market in Transition
Sales Volume
Sales in Kelowna were down 3% compared to 2023. While the year started slow, activity picked up significantly in the final months, with December sales climbing 40% year-over-year. This late surge coincided with five Bank of Canada rate decreases since June, boosting buyer confidence.Inventory Trends
Inventory remained high for most of the year, closing 2024 with a 12.5% increase compared to December 2023. However, December inventory levels dipped seasonally, as is typical during the holidays. Expect inventory to rise again in early 2025 as sellers prepare for the spring market.Price Trends: Steady Gains in Most Categories
Single-Family Homes
- Benchmark Price: $1,123,000 (up 5% year-over-year)
- After hitting a low in December 2023, prices steadily climbed throughout 2024. While still 13% below the spring 2022 peak, the upward trend signals a stabilizing market.
Townhomes
- Benchmark Price: $746,000 (up 2.3% year-over-year)
- Prices showed modest gains and some recent stability. This category appears resilient, with demand keeping values consistent.
Condos
- Benchmark Price: $475,000 (down 2% year-over-year)
- Condos remain a soft spot in the market. Prices have declined steadily over the past six months, largely due to increased inventory, including unlisted "shadow inventory" from developers that is not listed on the MLS®.
Market Conditions: Buyer’s Market Prevails
Months of Inventory
- Single-family homes: 8.8 months
- Townhomes: 8 months
- Condos: 8.6 months (excluding shadow inventory)
What’s Ahead in 2025?
The market is showing signs of recovery, particularly in single-family homes and townhomes. Key factors influencing 2025 include:- Interest Rates: With rates stabilizing and the Bank of Canada easing its overnight rate, buyer confidence is improving.
- Inventory Trends: Spring typically brings more listings, which may balance demand further.
- Policy Changes: Recent mortgage rule updates may help more buyers enter the market. Check out more information on recent changes here.
Takeaways for Buyers and Sellers
- Buyers: Now is a good time to enter the market, with ample inventory and room for negotiation, especially in condos.
- Sellers: Consider listing in the spring, when demand typically peaks. Competitive pricing will be key to securing offers in a buyer’s market.
If you’re planning your next move in the Okanagan, I’m here to help. Let’s discuss your goals—book a call today or download my free buyers and sellers guides at the links up above.