Kelowna’s real estate market in 2024 was a bit of a wild ride. The year kicked off slowly, with high interest rates making it tough for many buyers to afford homes. It wasn’t just Kelowna feeling the squeeze – this was a trend we saw happening across all of British Columbia. People were simply holding back, waiting to see if things might get a little easier.

In the spring, BC’s short-term rental restrictions came into effect, which had a drastic impact on the Kelowna housing market in terms of the way people were investing in the market, owners exiting the market to avoid speculation taxes, and availability options for buyers and long-term renters alike. By mid-year, the Bank of Canada stepped in with some relief, cutting interest rates three times by September. But, despite having the intended effect of breathing new life into Canadian real estate markets, a lot of potential buyers decided to wait it out, hoping for even more rate cuts.

There were also some big swings in the number of homes on the market. Spring and summer brought a nice boost in inventory, giving buyers more options, but by late summer, those listings started thinning out a fair amount. Add cautious buyers to the mix, and you’ve got a market that felt like it was constantly teetering between buyer’s and seller’s territory instead of favouring one or the other.

As we head into 2025, there are many indicators that a more approachable housing market lies ahead. To further incentivize first-time-buyers, the federal government has extended the maximum amortization period from 25 to 30 years, as well as raising the insurable mortgage cap from $1 million to $1.5 million, which is very likely due to rising average home prices (especially in the Kelowna housing market).

Looking ahead, there’s hope for a brighter 2025. Despite CREA’s initial projections for 2025 – a competitive market due to lower interest rates – experts are now saying a more plausible outcome is that we’re going to see a stable housing market this year, rather than a booming one. Lower interest rates and new mortgage policies should help bring more people back into the market, but affordability is still a challenge, even with amortization periods extending and insurable mortgage caps increasing.

All in all, 2024 was a transitional year for Kelowna real estate, navigating many factors that, once the dust settles, will leave us with a more constant and stable housing market. If you’re thinking about buying or selling, staying informed and flexible is going to be key as we head into 2025 – so stay tuned for my latest newsletters and blog posts to stay in the know!