Another wave of changes are making their way to the Kelowna housing market. In late January, we saw two significant events take place – BC’s short-term rental registry rollout, and the Bank of Canada’s overnight interest rates getting reduced down to 3%.

Kelowna’s real estate sales saw a 5.8% a decline in December compared to November, alongside a 5.5% year over year average pricing increase for single-family homes in the Okanagan (December 2023 compared to December 2024). However, some other interesting indicators are the average condo price going down across the Okanagan, as well as December 2024’s sales being up 30% compared to December 2023. 

Market experts claim that these factors, alongside a healthy level of available inventory, are leaning the Okanagan’s housing market towards more stable conditions as we make our way through the first weeks of 2025.

With the new overnight interest rate of 3% coming into play only a few days ago, the Bank of Canada announced that this would be their last rate reduction as part of their quantitative tightening strategy. In simpler terms, it sounds like buyers have more or less been told that now is the time to make good on any intentions they’ve had on investing into their local housing markets. With average condo prices slightly decreasing across the Okanagan at the end of 2024 along with a strong availability of listings in the area (and many new builds still yet to come) they just might have a point.

The introduction of BC’s short-term rental registry (aimed at regulating the short-term rental restriction policies rolled out in spring of 2024) may also have potential to move the market into more stable conditions by reducing the number of market speculators attempting to rent out properties which aren’t their primary residence. All short-term rental operators must apply for a registration number to be displayed on their online listing platforms by May 1st 2025, and failure to do so will result in their listings being taken down by June 1st 2025.

While this policy will undoubtedly create some mixed feelings within the Kelowna real estate market, the intention to shift housing into the hands of long-term residents might hopefully continue shifting the momentum towards more stable conditions and availability.

If you’re looking to take advantage of the new interest rate change and start making moves in the Kelowna real estate market, let’s get in touch!