Inventory is SOARING but, Are Prices CRASHING? | Kelowna Real Estate Market Update

Posted on May 08, 2025 in

Inventory is SOARING but, Are Prices CRASHING? | Kelowna Real Estate Market Update

🏡 Is the Kelowna Market Cracking or Just Cooling? A 2025 Real Estate SnapshotIntroduction:
The Kelowna real estate market is shifting—and fast. Inventory is at its highest point in nearly a decade, and prices in April took a noticeable dip. Does this mean we're heading for a full-blown correction, or is this just a spring slowdown? Let’s break down what’s really happening, and what it means for buyers and sellers right now.

📉 Prices Drop While Inventory Climbs

April saw some of the steepest price declines in recent months:

Single-family homes dropped by $10,000
Townhomes fell $15,000
Condos were the exception, ticking up 1.7%

These price movements are closely tied to inventory—there’s simply more for buyers to choose from, which puts pressure on sellers.

🏠 Inventory Is Near a 10-Year High

Inventory across all property types is climbing:

Condos: ~900 units on the MLS—highest in a decade
Townhomes: ~450 units—also a 10-year high
Single-family homes: Inventory is 200 units higher than any other April in the past decade

Buyers now have more options than they've had in years, and that’s starting to show in price softening.

📊 Benchmark Prices: What's the Trend?

Here’s how prices stack up across property types in April:

Single-Family Homes: $1,034,000 → Down 1.2% from March, but up 2.4% year-over-year
Townhomes: $734,000 → Down 2.1%, flat year-over-year
Condos: $513,000 → Up 1.7%, up 2.1% year-over-year

Prices may have dropped recently, but they’re still significantly higher than a decade ago—more than double in most categories.

🛑 Are We in a Market Crash?

Not yet. But with April marking the first month of across-the-board softening in a while, May’s numbers will be telling. One month doesn’t make a trend—but two or three? That could point to a correction.

📈 Sales Are Up—But Don’t Get Too Excited

Yes, sales in 2025 are pacing slightly ahead of 2024, but both years have been sluggish compared to the past decade. April 2025 matched 2024 sales—but remember, last year had the second-fewest April sales in 10 years.

🧭 Buyer’s Market… But Shifting?

We’re still firmly in buyer market territory, but momentum is changing:

Single-family homes: 7.1 months of inventory (down from 9.1 in March)
Townhomes: Holding steady between balanced and buyer market
Condos: Still strongly in buyer market, with growing inventory

This means buyers have the upper hand, but only to a point. Homes in great condition and good locations are still selling for 97% of list price—so don’t expect steep discounts.

🎯 Key Takeaways

Prices dropped in April, especially for townhomes and single-family homes
Inventory is at decade highs, giving buyers more choice
Sales are up slightly, but still weak by historic standards
The market is cooling, not crashing—yet
Now could be a smart time to buy, especially if rates stay low and you find the right fit

Thinking about making a move in Kelowna?
Let’s talk. With interest rates easing and more listings to choose from, this spring might offer the window you've been waiting for. Book a call today.

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