Kelowna Real Estate Update:
One Market Segment Surges 9% in a Month!

The Kelowna real estate market has been relatively stable over the past year, with minor month-to-month fluctuations and steady year-over-year growth. However, January 2025 saw an unexpected shake-up, with one property category experiencing a nearly 9% price jump in just one month. Could this be a sign of a major market shift, or is it just an anomaly? Let’s dive into the numbers.

Sales Activity: A Strong Start to 2025

January 2025 kicked off with 241 sales, the highest January total in the past two years. This continues the upward trend seen in late 2024, indicating more activity in the market compared to previous years.

Inventory: Higher Than Last Year

While the usual seasonal dip in listings occurred in late 2024, inventory levels in January 2025 were 20% higher than the same time last year. This increased supply has contributed to keeping prices relatively stable in most categories.

Single-Family Homes: Modest Growth

The benchmark price for single-family detached homes rose about 0.7% from December, settling at $1,030,600. Year-over-year, prices are up approximately 5%, which aligns with historical real estate appreciation trends. However, prices remain 12% below the February 2022 peak. Despite some fluctuations, this segment has shown steady growth over the past year.

Townhomes: Holding Steady

Townhomes saw a slight decline of 0.5% in January, with a benchmark price of $742,900. Compared to January 2024, prices have increased by about 5%. Like single-family homes, townhomes remain below their 2022 peak but have been trending upward in recent months.

Condos: A Surprising 9% Spike

Here’s where things got interesting—condos jumped 8.8% from December to January, bringing the benchmark price to $517,100. However, on a year-over-year basis, condo prices have only risen by 4.2%, making this sudden spike somewhat unexpected.Despite this increase, there are reasons to believe this might be an anomaly. The condo market currently has nearly 10 months of inventory available, firmly placing it in a buyer’s market. Typically, in such conditions, prices should remain stable or even decrease rather than jump sharply. If condo prices continue to rise in the coming months, it could signal a new trend, but for now, this surge seems like an outlier.

Buyer’s Market Across the Board

With inventory levels high across all categories, Kelowna remains in a buyer’s market. Here’s where things stand:

• Single-Family Homes: 9.6 months of inventory
• Townhomes: 9 months of inventory
• Condos: Nearly 10 months of inventory

Typically, when the market stays in a buyer’s market for an extended period, prices either remain stable or experience downward pressure. However, with sales activity increasing, there’s potential for inventory levels to decline, which could bring Kelowna back to a balanced or seller’s market in the future.

What’s Next for Kelowna Real Estate?

For now, Kelowna’s market remains stable, with no immediate signs of rapid price increases across most segments. The unexpected condo price jump is worth watching, but unless it repeats in the coming months, it’s likely just a temporary fluctuation. With increased sales and a steady market, 2025 could see  more balanced conditions.