March was a really positive start to the spring in the Kelowna housing market, with sales for townhomes, condos and single-family homes all showing increases compared to February. Coupled with this bump in sales activity, average and median prices for single-family homes showed a surprising decrease while condo and townhome prices held steady. Even more curiously, these shifts are happening while new listings and inventory are down compared to last year (although still higher than in 2024). 

Circumstances like these certainly create a lot of appeal for single-family home buyers looking to set up camp in Kelowna ahead of the summer. As intrigue continues to rise, sellers are faced with the challenge to either hold off in hopes of another uptick in pricing, or to make the most of the current market conditions – a situation that has the potential for fence-sitting situations on both sides of negotiations. Is this why the City of Kelowna is currently considering cutting development charges by nearly 20%?

With a potential housing shortage on the horizon in the next few years, the City of Kelowna is attempting to invigorate new construction by decreasing the barrier to entry for developers. The options currently in review are to decrease these development fees (or DDC’s) by up to 20% for one year, or freeze the current fees for a two year period. The hope is that these changes will “provide improved feasibility to the development industry, provide economic benefits in the form of employment, and align with the potential for federal infrastructure grants.” While these changes are currently under review, the Independent Contractors and Businesses Association have asked for an even greater reduction of DDC’s – up to 50% – which resonates along with the Central Okanagan Canadian Home Builders’ Association’s recent pleas for DDC decreases.

As these new development policies begin to unfold, affordable housing projects continue to break ground in Kelowna. The Anacapri – a 90 unit development in Kelowna’s Landmark district – are making their own attempts to reduce the barrier to entry for new buyers by significantly lowering the down payment for these new modern units.

While the market continues to shift and evolve, there’s never been a better time to reach out and discover your options whether you’re buying or selling. Let’s get in touch to plan your best path forward – there’s no need to be shy 🙂