Central Okanagan Real Estate Market Update

By Adam Smith

Adam Smith brings a proven track record of negotiation, leadership, and client-focused execution to real estate in Kelowna. With a deep understanding of high-stakes decision-making, he helps clients navigate complex transactions with clarity, confidence, and strategic insight.

What’s changed in Central Okanagan real estate?

In 2025, the market didn’t crash, but it didn’t feel strong either. Buyers had more negotiating power, while sellers no longer saw the rapid gains of 2021. It wasn’t a boom or a bust. It was a more selective market that rewarded strong finances and realistic pricing.

Here’s a breakdown of the latest numbers and market trends, and what it means for buyers and sellers in 2026.

Sales increased, but pricing stayed flat. In 2025, the Central Okanagan recorded 4,157 total sales compared to 3,882 in 2024. That’s roughly a 7% increase in activity. Gross sales volume also rose from $3.15 billion to $3.56 billion, which means more money moved through the system.

Home prices did not surge. The average sale price rose from $740,000 to $749,000, essentially flat. Sellers were still receiving about 3% below list price on average.

Days on market also increased slightly from 44 to 48.

Single-family home sales. At first glance, rising sales made it seem like the entire market was rebounding. But a closer look tells a different story. Most of the increase came from single-family homes, where sales climbed from just under 1,824 to just over 2,025.

Condo sales dipped slightly from 1,067 to 1,049, and townhomes remained flat. This shows that first-time buyers weren’t driving the market in 2025. Affordability didn’t suddenly improve. Instead, buyers who already had the financial flexibility decided to move. Rather than starting with condos or townhomes, many went straight for the detached homes they truly wanted.

Luxury homes led the year. Luxury activity told a very different story. Sales over $1 million rose 20% year over year. Over $2 million jumped 56%, and over $3 million climbed 71%. Properties above $5 million increased 86%, while $10 million-plus sales doubled. Capital didn’t leave the market; it moved higher. The middle price ranges slowed, while the upper end moved decisively. That’s what a fork-in-the-road market looks like.

Inventory felt high but was uneven. Inventory played a major role in shaping buyer and seller psychology. The market began and ended the year with roughly 2,400 active listings and peaked near 3,600 in June. In 2021, there were about 1,200 listings at similar points. Buyers clearly had more choice. However, inventory was not evenly distributed. A large portion consisted of investor-grade condos and homes priced according to 2021 expectations. At the same time, there remained a shortage of truly affordable family housing.

This wasn’t an oversupply problem. It was a mispricing problem. Buyers felt empowered because they had options and could negotiate, while sellers felt frustrated because only well-positioned homes moved efficiently.

Long-term wealth remained intact. While the last few years may not have felt like strong wealth-building years, the numbers tell a different story. Five years ago, the average single-family home was about $829,000. In 2025, it sat at around $1,045,000. Ten years ago, that same benchmark was $498,000. Over time, that appreciation created substantial equity for homeowners who held their positions. Time continued to work.

What does this mean for 2026? The outlook for 2026 appears stable rather than dramatic. Expectations point to no boom and no crash, with steady rates, elevated inventory, and selective buyers. Sales activity is likely to strengthen first, with pricing following later. A key group to watch is the roughly 18,000 households that purchased between 2018 and 2020.

The Central Okanagan market doesn’t have to feel complicated. With the right pricing strategy and a clear understanding of today’s inventory and buyer behavior, you can position yourself to move confidently and protect your equity.

If you’re thinking about buying or selling in 2026 and want clarity around timing, pricing, or strategy, feel free to call or text me at 604-813-0142 or send an email to adam@vantagewestrealty.com. I can help you determine the right approach so you can make a smart, informed decision in this selective market.