Market heading for balance

The Central Okanagan real estate market is expected to come back to life in 2025, but not in a big way, according to Re/Max Canada.

The real estate giant has published its 2025 outlook with a prediction that average prices of all types of property will climb by a modest three per cent as the current buyer’s market becomes balanced.

“Heading into 2025, both buyers and sellers are optimistic as interest rates continue to decrease,” says the report, explaining that extended amortization and government rebates will make it easier for first-time home buyers.

“In early 2025, market activity is expected to be cautious. Eager buyers looking for motivated sellers will move fast, while lower rates help reduce financial pressure on sellers.”

The number of real estate transactions fell by 7.9 per cent in 2024 as buyers and sellers waited out high interest rates.

The average sale price in the Kelowna housing market decreased by two per cent, year-over-year, for all property types between 2023 and 2024, from $830,328 in 2023 to $813,974 in 2024. It is expected to climb back up to $838,393 next year.

“Looking ahead to 2025, the Kelowna housing market is likely to shift into balance,” said Re/Max Canada.

In addition to predicting a price increase of three per cent, the firm says the number of sales is anticipated to increase by four per cent. Total listings should increase by approximately two per cent.

Move-up buyers — homeowners looking to upgrade — will be driving the bulk of the market activity in Kelowna in 2025, said the report, buying homes in the $1 million to $1.5 million range. First-time buyers are mostly seeking single-family homes priced below $800,000, but are also considering townhomes.

Single-detached houses are expected to see the most sales activity in the region next year.

In the condominium market, new small condos could drive up prices for larger units, as demand shifts toward more livable spaces, Re/Max Canada predicted.

Elsewhere in B.C., property prices are also expected to climb in Vancouver (+7 per cent) and Vancouver Island (+4 per cent). Cities in Alberta should should see growth in 2025 with Calgary +5 per cent and Edmonton +10 per cent.

As a part of the report, Re/Max commissioned a Leger survey that found only half of Canadians are confident home ownership is still attainable.