The sun is shining, patios are opening, and the Kelowna real estate market is blooming. Despite some unexpected variables this year – like the introduction of the ‘Flipping Tax’ and the short term rental restrictions that will soon go into effect – market activity is showing an upward trend with positive conditions as we head into the spring.

While it may seem obvious, some of the main contributors to strong market conditions are the quantity of available inventory, average sale prices, and the number of sales, relative to previous months and years. So far in 2024, we’ve seen a strong increase in available listings – February in particular showing a residential inventory increase of 29.5% compared to last year – which tells us that the residential real estate market has potential to transition into a period of recovery and stability in 2024. And, despite increases in inventory, average residential real estate prices in the Okanagan also saw a slight uptick – a great sign of things to come. 

With speculation around potential interest rate changes coming our way soon, experts like Jerry Redman – owner and managing director of RE/MAX Kelowna – are predicting a significant amount of market activity later this year. “People are looking, sitting out there waiting for the right home to come along and be listed,” he noted. “So if you pay attention to the current market conditions, there’s still a really good opportunity.” There’s potential that interest changes will be announced as early as June 5th, while others anticipate these may not be made clear until July 24th.

Keeping all of these factors in mind, if things continue to trend upwards as predicted, now may be the perfect time for first-time buyers to consider entering the market before spring price increases come into effect. Another silver lining for first-time buyers is their exemption from the 1% property transfer tax, as well as the potential upside of variable mortgage rates coming down in the near future.

Only time will truly tell where things are headed, but as it stands, Kelowna’s real estate market is looking strong and stable as we break way into the spring, which is typically the first high-activity season of the year.