If you're considering buying a house in Kelowna, you're probably wondering whether now is the right time to make a move. With Kelowna home prices, inventory levels, and sales activity shifting, it's essential to analyze the Kelowna real estate market trends before making a decision.

Using the latest February 2025, and March mid month market data, combined with recent weekly trends, this guide will break down market conditions, pricing trends, inventory levels, and what buyers need to know to make an informed decision.

Kelowna Real Estate Market Trends: February 2025 Data Breakdown

1. Kelowna Real Estate Market Trends (February 2025 Update)

According to the latest data since the February release, the Kelowna real estate market is gaining momentum:

• New Listings: 2,082 homes have hit the market so far this year —a 20.28% increase from February 2024 (1,731 listings). This means more choices for buyers!

• Total Sales: 578 homes have sold in 2025 in the Central Okanagan, marking an 18.93% increase from the same period last year (486 sales). Demand has grown!

• List-to-Sales Ratio: 27.76%, slightly lower year to date than February 2024's 28.08%, but improving as weekly sales pick up. Notice though that for the month of February specifically, 2025 vs 2024 ratios are 30.03% vs 26.40%!

• Recent Weekly Sales Trends: Sales activity has been climbing in recent weeks, rising from 60's to 95 transactions per week. Buyers are clearly stepping off the sidelines! Listings coming to market have also broken the 300 per week threshold twice in the past month, as sellers start to take action. 

• Townhomes are strongly out performing market averages seeing an 11.54% increase in prices year to date compared to where we were this time last year. Often referred to as the 'missing middle', townhomes are expected to hold their value the best across the market in the coming years, expecting to be a smart investment for buyers. 

2. Kelowna Home Prices: Are They Rising or Stabilizing?

• The average Kelowna home price has remained relatively stable but with slight upward pressure in certain sectors due to increased sales activity.

• Entry-level homes and condos are seeing higher demand, particularly from first-time buyers and investors, while higher priced condos are staying on the market longer.

• Luxury properties and lakefront homes remain a niche market, with longer days on market but stable pricing.

For buyers, this means pricing is not expected to drop significantly, so waiting may not lead to better deals. While demand remains strong, the surge in new listings is balancing the market, keeping prices competitive. This is great news for buyers who have more options and negotiating power. If you’ve been waiting for the market to cool slightly, now could be an ideal time to jump in.

3. Interest Rates & Affordability: Should Buyers Lock In a Mortgage Now?

Interest rates continue to be a key factor for buyers. While mortgage rates in Kelowna remain elevated compared to previous years, many economists anticipate potential rate cuts later in 2025.

• Fixed-rate mortgages are offering more predictability, appealing to cautious buyers.

• Variable-rate mortgages may offer long-term savings if interest rates decline later this year.

• Buyers who secure a pre-approval now can lock in today’s rates while still benefiting if rates drop in the near future.

Why Now May Be the Right Time to Buy a Home in Kelowna

1. More Homes to Choose From

The increase in new listings means buyers have better selection compared to the low-inventory markets of previous years.

2. Stable Buyer Competition (For Now)

While sales are picking up, Kelowna is not yet in a frenzied bidding war market - although we have sent multiple offer situations in well priced listings. This gives buyers a chance to negotiate better terms when acting quickly.

3. Prices Are Stable but Not Dropping

With Kelowna home prices holding steady, waiting longer may not yield significant savings. Locking in a home now ensures you’re building equity instead of waiting for an unpredictable shift.

4. Future Interest Rate Cuts Could Spark More Demand

Once interest rates decline, more buyers will enter the market, increasing competition and potentially driving up prices. Buying before rates drop ensures you secure a home before competition heats up.

Tips for Buying a Home in Kelowna’s 2025 Market

1. Get Pre-Approved Before House Hunting

• Kelowna mortgage pre-approval is crucial in today’s market.

• Knowing your budget ensures you can act quickly on desirable homes.

• Pre-approvals also lock in interest rates while you search.

2. Work With a Local Kelowna Realtor

• A Kelowna real estate expert can provide insider knowledge on pricing trends and off-market opportunities.

• They can also negotiate better deals on your behalf.

3. Be Ready to Move Quickly on Good Deals

• Well-priced homes, especially in high-demand neighborhoods, are still moving fast.

• Have your financing and paperwork in order so you can submit a strong offer.

4. Consider Long-Term Value

• Think beyond just price—consider neighborhood growth, resale potential, and lifestyle fit.

• Up-and-coming areas may provide the best long-term investment opportunities.

Final Thoughts: Should You Buy a Home in Kelowna Right Now?

While market conditions in Kelowna are shifting, buying a home in 2025 offers great opportunities for those who are prepared. With more listings available, stable pricing, and the possibility of interest rate cuts later in the year, buyers who act now could secure a great property before competition increases.

If you’re thinking about buying a home in Kelowna, now is the time to get pre-approved, start your search for homes for sale in Kelowna, and work with an experienced local realtor.

Looking for expert guidance? Contact us today to explore the best homes on the market and find the perfect property for your needs.