Kelowna Real Estate Market Report: What's Happening Right Now

The Kelowna real estate market report for early 2026 paints a picture that's more nuanced than most headlines suggest. After three consecutive years of declining sales activity, 2025 brought the first signs of recovery, and the market entered 2026 with cautious optimism. But the numbers tell a more layered story than simply "up" or "down." January followed typical seasonal patterns with a notable pullback from a surprisingly strong December, while prices held relatively steady and inventory remained balanced. If you're thinking about buying, selling, or investing in the Central Okanagan, here's what the latest Kelowna real estate stats actually show.

What the January 2026 Numbers Tell Us About the Kelowna Housing Market

January is always the slowest month for real estate transactions, and January 2026 was no exception. Across the entire Association of Interior Realtors region, 623 residential units sold, down 22.3% compared to January 2025 and down 20.9% from a particularly strong December. New residential listings came in at 2,021, a 9.5% decrease from the same month last year. Total active listings across the region sat at 6,647, representing a modest 2.5% decrease in inventory compared to January 2025.

Zeroing in on the Central Okanagan specifically, the numbers looked like this:

• Units sold: 226 properties, a 16.91% decrease from 272 units in January 2025
• New listings: 894 properties came to market, down 15.98% from 1,064 last January
• Active listings: 3,109 properties available, down 3.95% from 3,237 a year ago
• Average days on market: 92 days, virtually unchanged from 91 days in January 2025
• List-to-sell ratio: Properties sold for 90.37% of their asking price, down from 92.93% last year
• Total sales volume: $184.5 million, a 12.69% decrease from $211.3 million in January 2025

Association of Interior Realtors president Kadin Rainville characterized the January slowdown as the market "recalibrating rather than retreating," noting that prices are holding relatively steady and demand is still present. The dip was sharper than anticipated, but the consensus among local analysts is that this reflects timing and economic caution rather than a fundamental shift in momentum.

Kelowna Real Estate Stats by Property Type: Where the Action Is (and Isn't)

Not every segment of the Kelowna housing market is moving at the same pace, and understanding the differences between property types is critical for making smart decisions right now.

Single-family homes remain the anchor of the Central Okanagan market. In January 2026, 91 detached homes sold at an average price of $1,036,503, with a median price of $945,000. There are currently 940 single-family homes actively listed. Throughout 2025, single-family homes drove the majority of net new activity. The average sale price climbed to $1,150,234 in May 2025 (a 9% year-over-year increase) before settling back to $1,094,256 in December 2025 (up 4% from December 2024). The benchmark price for a single-family home in the Central Okanagan hovered around the $1,020,000 to $1,050,000 range through the second half of 2025, down from the April 2022 peak of $1,131,000 but holding steady on a month-to-month basis.

Townhouses saw 36 sales in January at an average price of $730,581 and a median of $661,250, with 314 active listings. The townhouse segment showed mixed signals through 2025. Some months saw sharp benchmark price fluctuations (the benchmark jumped from $697,100 in October to $752,800 in November 2025), making it harder to pinpoint a clear trend. That volatility partly reflects the smaller sample size of townhouse transactions in any given month.

Condos and apartments continue to tell a different story entirely. January saw 55 condo sales at an average price of $501,550 and a median of $410,000, against a backdrop of 685 active listings. The condo market has firmly shifted into buyer territory, with benchmark prices declining across the region. New condo supply continues to enter the market as recently completed developments deliver units, adding to the inventory pressure. For buyers looking at the entry-level price point, condos offer significantly more negotiating power than they have in years.

Central Okanagan Market Conditions: Buyer's Market, Seller's Market, or Something Else?

Here's the number that matters most right now: months of inventory. With 226 units sold in January against 3,109 active listings, the Central Okanagan is sitting at roughly 13.8 months of supply. That's firmly in buyer's market territory. For context, a balanced market typically sits between 4 and 6 months of supply. Above that, buyers have leverage. Below it, sellers do.

But monthly snapshots can be misleading, especially in January when seasonal factors suppress sales. Looking at the broader trend, the sales-to-new-listings ratio through 2025 hovered between 40% and 45%, which places Kelowna in what most analysts consider a balanced market on an annualized basis. Properties that are priced correctly and presented well still sell within a reasonable timeframe. The ones that sit are generally overpriced relative to what buyers are willing to pay.

The list-to-sell ratio tells part of that story. At 90.37% in January 2026, sellers are accepting roughly 10% below their asking prices on average. That gap has widened compared to a year ago (when it was around 93%), which signals that buyers are negotiating harder and sellers who price aggressively from the start are the ones getting deals done.

Days on market across all property types averaged 92 in the Central Okanagan this January. Single-family homes moved faster through the second half of 2025, averaging around 55 to 70 days depending on the month. Condos consistently took longer, averaging 67 to 76 days by mid-to-late 2025. The takeaway: patience is required regardless of which side of the transaction you're on.

How Interest Rates Are Shaping the Kelowna Market Update

You can't discuss the Kelowna housing market without talking about interest rates. The Bank of Canada held its overnight rate at 2.25% on January 28, 2026, following seven consecutive cuts since June 2024 that brought the rate down from a peak of 5%. Most analysts now expect the rate to hold at or near this level through at least the first half of 2026, barring a significant economic shock.

For mortgage borrowers, here's what that translates to as of February 2026:

• 5-year fixed rates: The lowest available insured rate sits around 3.69% to 3.74% through brokerages, while the big banks are posting rates in the 4.19% to 4.70% range
• Variable rates: As low as 3.35%, with the prime rate at 4.45%
• Stress test qualifying rate: Still 5.25% or contract rate plus 2%, whichever is higher

The lower rate environment compared to 2023 and early 2024 has improved affordability somewhat. On a $800,000 mortgage at 3.74% over 25 years, your monthly payment would be approximately $4,100, compared to roughly $4,700 at the 5.5% rates that were common in late 2023. That's a meaningful difference of about $600 per month, or $7,200 per year.

However, bond yields spiked in December 2025 and have only gradually declined since, which has kept fixed rates from falling further. The British Columbia Real Estate Association projects fixed rates will remain near current levels for most of 2026. Some forecasters see the possibility of 5-year fixed rates dipping below 3.75% by summer if bond yields continue their downward trend, but that's far from guaranteed given trade uncertainty with the United States and the upcoming CUSMA review.

What's Different About This Kelowna Real Estate Market Report Compared to Last Year

Looking at where we were 12 months ago versus today reveals some important shifts in the Central Okanagan market.

Sales activity is recovering, slowly. 2025 was the first year of growth since the market cooled in 2022. Single-family home sales in particular showed consistent year-over-year gains through most of 2025. May 2025 saw a 19% jump in single-family sales compared to May 2024, and even the typically slower fall months posted gains of 6% to 9% year-over-year.

Prices are stable, not surging. This is the part that confuses a lot of people. More sales activity usually correlates with rising prices, but that didn't happen in 2025. Average sale prices barely moved on an annualized basis. The increase in activity was concentrated among specific buyer segments (primarily move-up buyers in the $1 million to $1.5 million single-family range), not spread evenly across the market. Capital didn't leave the Okanagan; it moved up the property ladder.

Inventory is elevated but not alarming. Active listings in December 2025 were only 0.5% higher than December 2024 across the Central Okanagan. But what matters is the composition of that inventory. Condos are sitting in abundance. Single-family homes in desirable locations still sell. The overall number masks significant variation between property types and neighbourhoods.

Buyer behaviour has fundamentally changed. Buyers are more informed, more cautious, and less willing to overextend. They have more options than they've had in years, which means sellers need to earn every offer. Proper pricing, quality presentation, and realistic expectations are no longer optional.

One notable demographic shift: the Okanagan experienced its first population decline since 2001 in 2025, losing approximately 6,590 residents. Some families are relocating to more affordable markets in Alberta and Atlantic Canada. While this doesn't signal a collapse, it does remove one of the tailwinds that supported housing demand during the pandemic years.

What This Means If You're Buying, Selling, or Investing in Kelowna

The 2026 outlook for Kelowna real estate is, frankly, intentionally boring, and that's a good thing. No wild swings. No frenzied bidding wars. No panic selling. Just a market that's finding a healthier equilibrium after the extremes of the pandemic era.

If you're buying, this is one of the most balanced environments Kelowna has seen in recent memory. You have time to shop, room to negotiate, and less competition at the offer table. The condo market in particular offers entry points that were unthinkable two years ago. That said, don't expect fire-sale prices on well-located single-family homes. Those are holding value.

If you're selling, pricing strategy is everything. The days of listing high and hoping for a bidding war are over. Homes that are priced at or slightly below market value based on recent comparable sales attract the most attention and sell the fastest. Every dollar you overprice is a day your listing sits, and in a market with this much inventory, sitting is expensive.

If you're investing, cash flow analysis needs to be conservative and realistic. Positive cash flow remains difficult to achieve on most Kelowna properties at current prices and rental rates, especially for condos. The opportunity lies more in long-term appreciation and strategic positioning than in short-term returns.

The spring market will be the real test. If sales activity picks up as it typically does between March and June, and inventory gets absorbed at a healthy pace, the market should continue its measured recovery. If not, sellers may face more pressure heading into fall.

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