Kelowna Real Estate Market Report – Q2 2025

Metric	Q2 2025	YoY Change
Aggregate Home Price	$868K	+5.1%
Detached Median Price	$1.2M	+6.0%
Condo Median Price	$521K	+9.8%
Residential Sales (All Types)	2,702	+2.5%
Detached Sales Volume	1,439	+7.4%
Townhome Sales Volume	362	-7.9%
Apartment Sales Volume	470	-7.7%

 Data source: Association of Interior REALTORS® - Okanagan

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Detached Homes: Tight Supply, Solid Gains

Detached homes continue to anchor Kelowna’s market. The median sale price increased 6% year over year, reaching $1,215,300. Sales activity was up 7.4%, with inventory tightening to 8 months, down from 9.2 last year.

Although homes are spending slightly more time on market—42 days on average, up from 41—the data points to resilient buyer interest amid constrained supply.

Low levels of new construction in this category are sustaining demand.

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Townhomes: A Balanced Market with Cooling Signs

Townhomes saw a modest price dip and softer demand:

• Median sale price: $600,000 (down 0.8%)

• Sales volume: Down 7.9% YoY

• Months of inventory: 6.8 (up from 6.6)

• Average days on market: 46 (up from 37)

Buyers are taking longer to commit in this segment, suggesting that price sensitivity and rising borrowing costs are influencing decision-making at the mid-range level.

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Condos: Strong Price Growth Despite Slower Sales

While condo sales declined year over year, prices surged:

• Median sale price: $521,700 (up 9.8%)

• Sales volume: Down 7.7%

• Months of inventory: 9 (up from 8.2)

• Average days on market: 48 (down slightly from 49)

This combination of rising prices and slower absorption signals investor interest and a competitive landscape for entry-level buyers, especially in central and amenity-rich locations.

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National Context: Kelowna Stands Apart

Royal LePage reports that most major Canadian markets—including Toronto and Vancouver—entered spring 2025 with muted momentum, held back by geopolitical uncertainty and consumer hesitancy.

In Kelowna, we’re seeing relative strength in both pricing and sales, reflecting solid underlying fundamentals, including:

• Limited new construction, particularly for detached product

• Continued migration from Ontario driving purchases

• Outflow from BC to Alberta driving sales

• Demand from retirees downsizing to senior and 55+ communities, remote professionals, and investors

While the national outlook remains cautiously optimistic, Kelowna’s trajectory is more decisive—a reflection of its unique position in BC’s interior housing landscape.

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Inventory & Days on Market Snapshot

Detached inventory continues to tighten, while townhomes and condos remain closer to balanced territory.

Days on market increased slightly across the board—an expected seasonal adjustment—yet activity remains relatively brisk compared to pre-pandemic norms.

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What This Means for Buyers and Sellers

For Buyers

• Detached inventory is shrinking—move decisively if you're shopping in this segment.

• Condos are holding value well; rising prices suggest a window of opportunity before further appreciation.

• With longer average days on market, buyers have room to negotiate, particularly on mid-tier and multi-family listings.

For Sellers

• Detached home sellers remain in a favorable position, especially if pricing reflects current demand.

• Townhome and condo sellers should prepare for slightly longer listing timelines and increased competition.

• Professional staging, sharp pricing, and targeted marketing will be key this fall.

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The Bank of Canada has kept its key interest rate steady at 2.75% since March, after several cuts earlier this year. Although inflation is still slightly above target—mainly due to housing and trade-related costs—most experts believe the Bank will hold rates steady through summer.

There’s now only a 10% chance of a rate cut in July, with more movement likely in the fall if the economy slows.

For buyers and sellers, this means borrowing costs are expected to stay stable, making it easier to plan ahead. Fixed mortgage rates may remain slightly higher due to global uncertainty, but Kelowna’s steady market fundamentals continue to support demand.

Looking Ahead: What to Watch

The second half of 2025 will likely bring:

• A seasonal uptick in listings in September and October

• Possible rate changes from the Bank of Canada impacting affordability, with the next rate announcements on July 30th, Sept. 17th, Oct. 29th, and Dec. 10th

• Renewed buyer activity if economic confidence improves

Royal LePage projects a 3.5% increase in national home prices by Q4 2025, with stronger gains expected in resilient markets like Kelowna.

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New Developments: Spotlight on Upper Mission & Beyond

New construction activity remains limited in the detached segment—one of the factors sustaining Kelowna’s strong price performance in Q2.

However, several upcoming projects are opening up rare opportunities for buyers seeking modern single-family homes in high-demand neighbourhoods.

 

Upper Mission: A Hub for New Detached Homes

Upper Mission continues to lead Kelowna’s new detached housing pipeline with several active projects:

• The Heights at Upper Mission – A mix of 3- to 4-bedroom townhomes and fully detached homes with contemporary architecture and valley views.

• Trailhead at the Ponds – A collection of new single-family homes and lots offering proximity to new schools, parks, and trails in the growing Ponds corridor.

• Sage Water – Large-lot single-family homes by Emil Anderson, designed to take full advantage of the area's natural elevation and lake vistas.

• 5300 South Ridge Drive – A boutique release of 14 new single-family homes in Southwest Mission, appealing to families and move-up buyers alike.

These communities offer a rare blend of lifestyle and location, with modern construction, energy-efficient designs, and access to top-ranked schools—all within 15 minutes of downtown Kelowna.

 

Additional Single-Family Projects in the Region:

• University Heights – Spacious 3 to 6-bedroom homes near UBCO, ideal for multigenerational living or executive families.

• Solstice at Tower Ranch (Rutland) – A golf-adjacent enclave with a mix of detached homes and townhomes.

• The Summit at Lakestone (Lake Country) – Custom lakeview lots with elevated privacy and resort-style amenities.

• Shorerise (West Kelowna) – A master-planned community offering both detached homes and multifamily options with access to trail networks and schools.

While inventory remains tight, these new projects present a strategic entry point into Kelowna’s most resilient housing segment. For buyers prioritizing long-term value, these detached opportunities represent the strongest path to equity growth.

Explore all of Kelowna's new developments for 2025

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Local Insight, Real Results

At Vantage West Realty, we understand that market timing and negotiation precision matter. 

Whether you're buying or selling in Kelowna’s fast-evolving market, our data-driven approach and deep local expertise help you act with confidence.

With over 2 decades of experience navigating and investing into the Kelowna real estate market, we’ve become the Okanagan Valley’s go-to real estate agency — backed by over 1,000 perfect Google reviews.

 

Ready to take the next step?

Contact our team for a personalized market analysis or buyer strategy session.

Call us at 250-717-3133 or leave us a note to get started.

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