Kelowna & Okanagan Real Estate Market Update: September 2026

Posted on Oct 05, 2026

I get asked the same question almost every week right now: "Kara, is the market crashing, or is now actually a good time to make a move?"

After digging through September's numbers, my honest answer is this: the Okanagan market is slowing down, but it isn't falling apart. Fewer homes are selling than this time last year. But in most of the valley, prices are holding steady, and in some places they're climbing.

That might sound contradictory, so let's unpack it together. Below, I'll walk you through what happened across the Okanagan in September 2026, what's going on in the wider B.C. and Canadian markets, and most importantly, what it all means if you're thinking about buying or selling.

Unless noted otherwise, local figures come from the Association of Interior REALTORS® (AIR) September 2026 statistics and compare September 2026 with September 2025. Single-family figures exclude lakefront and acreage homes.

The Big Picture: September 2026 at a Glance

Let's start with the whole Association of Interior REALTORS® region. That includes the Okanagan, plus Kamloops, the Kootenays, the Shuswap and the South Peace River area.
  • Homes sold: 1,141 (down 8.0%)
  • Dollar volume: $765.9 million (down 12.5%)
  • Active listings: 9,185 (down 6.8%)
  • New listings: 2,289 (down 13.4%)
Now, zooming in on just the Okanagan (Central, North and South Okanagan combined):
  • Homes sold: 582 (down about 12.8%)
  • Dollar volume: $440.4 million (down about 17.2%)
  • Active listings: 5,144 (down about 10.1%)
  • New listings: 1,278 (down about 19.0%)
Here's the part I want you to really notice. Sales slowed, but new listings dropped even faster. Fewer people are putting their homes on the market, which means buyers have fewer options to choose from than they did a year ago. That tighter supply is a big reason prices haven't slipped the way some people expected.

What's Happening Beyond the Okanagan

The Okanagan doesn't exist in a bubble, so it helps to look at what's happening across B.C. and Canada.

Interest rates: holding steady, for now

The Bank of Canada kept its key interest rate at 2.25% at its September 2 announcement. According to CTV News, Governor Tiff Macklem pointed to several risks the bank is watching, including renewed trade tensions with the U.S. and a growing risk that inflation picks back up.

For you, that means borrowing costs are stable for now. That's helpful if you're budgeting for a purchase, but nobody should count on rates dropping in the near term.

B.C.: a slow, gradual recovery

The B.C. Real Estate Association (BCREA) reported 5,653 residential sales across the province in August 2026, down 4% from a year earlier, with an average price of $924,826 (down about 1%). BCREA's chief economist, Brendon Ogmundson, described a gradual recovery that's still underway, while flagging new tariffs and rising long-term interest rates as risks.

Looking further ahead, BCREA's spring forecast, reported by Canadian Mortgage Professional, expects provincial sales to dip about 2.1% in 2026 before bouncing back roughly 7.7% in 2027. It points to improved affordability and several years of pent-up demand as the drivers of that rebound.

Canada: patient buyers, flat prices

Nationally, the Canadian Real Estate Association (CREA) reported that August home sales were down 6.9% from last year, with the national average price at $668,219 (up 0.6%). CREA noted that activity and prices have been mostly flat for four straight months, and that buyers are staying patient amid worries about tariffs and job security.

In July, CREA also lowered its 2026 forecast and now expects national sales to finish the year down about 1.4%. It specifically mentioned that B.C.'s more balanced supply and demand could mean meaningful price growth here waits until 2027.My take: the Okanagan is following the same "slow and steady" pattern as the rest of B.C. and Canada. If anything, our single-family market is holding up better than many areas.

Central Okanagan (Kelowna, West Kelowna, Lake Country & Peachland)

Central Okanagan recorded 320 sales (down 12.8%) and $268.5 million in dollar volume (down 18.4%). Active listings fell 9.7% to 2,927, and new listings dropped 20.0% to 778.

Single-family homes: the strongest segment in the valley

  • Sales: 149 (down 5.1%)
  • Benchmark price: $1,057,200 (up 3.4%)
  • Days to sell: 67 (up 9.4%)
  • Inventory: 1,218 (down 16.1%)
If you own a detached home in Kelowna, this is encouraging news. Sales barely dipped, the benchmark price rose 3.4%, and there are about 16% fewer homes for sale than last year. That's a recipe for steady prices.

It also lines up with Century 21's annual price-per-square-foot survey, reported by Castanet in July. It found Kelowna detached homes edged up from $408 to $410 per square foot, and that Kelowna's prices have been far less volatile than in Metro Vancouver.

Townhouses: where buyers have the most room to negotiate

  • Sales: 46 (down 14.8%)
  • Benchmark price: $696,600 (down 5.5%)
  • Days to sell: 82 (up 35.9%)
  • Inventory: 445 (up 4.2%)
Townhouses are the softest part of the Central Okanagan market right now. Prices have eased, homes are taking longer to sell, and inventory is actually growing. If a townhouse is on your wish list, you'll likely have more choice and more bargaining power than you've had in years.

Condos and apartments: steadier than you might think

  • Sales: 83 (down 18.6%)
  • Benchmark price: $496,700 (up 2.0%)
  • Days to sell: 85 (up 9.8%)
  • Inventory: 774 (down 6.9%)
Condo sales slowed, but prices nudged up and inventory came down. That's a healthier picture than a lot of people expect when they hear "condo market."

One thing worth knowing if you're an investor: Kelowna's rental market has loosened. A recent CPA BC report, covered by Castanet, found Kelowna's rental vacancy rate reached 6.4%, the highest among Canada's major urban areas, as a wave of new rental buildings came online. Renters have more options, so investors should run their numbers carefully.

Kelowna neighbourhoods worth watching

  • Lower Mission was the standout. Single-family sales jumped to 16 (up from 6 a year ago), with a benchmark of $1,268,600 (up 4.3%). It also led Central Okanagan with 18 condo sales.
  • Upper Mission and Rutland North each had 11 single-family sales, both up 37.5%. Rutland North's benchmark rose 3.4% to $840,900, making it one of Kelowna's more attainable detached markets.
  • Glenmore posted 11 single-family sales, with a benchmark of $967,800 (up 2.4%).
  • Kelowna North (downtown) had 13 condo sales, with a benchmark of $610,100 (up 0.9%).
  • Westbank Centre condo sales rose 42.9% to 10, with a benchmark of $442,600 (up 2.5%).
  • Springfield/Spall remains one of the most affordable spots for a detached home, with a benchmark of $686,600.

North Okanagan (Vernon, Coldstream, Armstrong & Area)

North Okanagan recorded 129 sales (down 16.8%) and $93.8 million in dollar volume (down 12.0%). Active listings fell 10.9% to 924, and new listings dropped 21.6% to 222.

Single-family homes: the biggest price gain in the Okanagan

  • Sales: 64 (down 21.0%)
  • Benchmark price: $793,000 (up 5.6%)
  • Days to sell: 94 (up 26.4%)
  • Inventory: 374 (down 20.4%)
This one surprised me. Even with fewer sales and homes taking longer to sell, North Okanagan posted the strongest single-family price gain in the Okanagan. With inventory down more than 20%, well-priced homes aren't facing much competition.

Townhouses

  • Sales: 19 (down 9.5%)
  • Benchmark price: $563,400 (down 1.1%)
  • Days to sell: 84 (up 44.4%)
  • Inventory: 131 (down 9.0%)

Condos and apartments: the Okanagan's most affordable option

  • Sales: 13 (down 27.8%)
  • Benchmark price: $324,300 (up 4.4%)
  • Days to sell: 129 (up 79.9%)
  • Inventory: 90 (up 9.8%)
At a $324,300 benchmark, North Okanagan condos are the most affordable in the Okanagan. They're also taking the longest to sell, at 129 days on average. If you're a first-time buyer, that combination is worth a serious look.

North Okanagan highlights

  • Coldstream single-family prices rose 8.8% to $1,031,200.
  • Predator Ridge doubled its single-family sales to 4, with a benchmark of $1,259,300 (up 5.7%).
  • City of Vernon single-family sales rose 20% to 6, with a benchmark of $546,300 (up 6.6%).
  • East Hill posted 7 single-family sales (up 16.7%), with a benchmark of $710,100 (up 7.4%).

South Okanagan (Penticton, Summerland, Oliver, Osoyoos & Area)

South Okanagan recorded 133 sales (down 8.3%), the smallest decline of the three Okanagan regions, and $78.1 million in dollar volume (down 19.0%). Active listings fell 10.5% to 1,293, and new listings dropped 13.9% to 278.

Single-family homes: prices are softening, and buyers are noticing

  • Sales: 62 (down 19.5%)
  • Benchmark price: $718,400 (down 6.2%)
  • Days to sell: 78 (down 8.7%)
  • Inventory: 515 (down 13.0%)
South Okanagan is the one region where single-family prices have clearly come down, about 6% from last year. But here's the interesting part: homes are actually selling a little faster than last year. To me, that says buyers are responding to sharper pricing.

Townhouses

  • Sales: 10 (down 41.2%)
  • Benchmark price: $486,700 (down 5.7%)
  • Days to sell: 78 (up 30.0%)
  • Inventory: 148 (up 10.5%)

Condos and apartments

  • Sales: 23 (down 23.3%)
  • Benchmark price: $445,300 (up 5.0%)
  • Days to sell: 144 (up 66.1%)
  • Inventory: 270 (down 10.6%)

South Okanagan highlights

  • Osoyoos condo sales rose 60% to 8, with a benchmark of $446,700 (up 2.3%).
  • Oliver held steady with 7 single-family sales, the same as last year, at a $571,500 benchmark.
  • Penticton Main North and Main South condo prices rose 5.6% and 5.8%.
  • Keremeos saw 5 single-family sales, up from just 1 a year ago.

Shuswap / Revelstoke

The Shuswap/Revelstoke region recorded 76 sales (down 12.6%) and $55.4 million in dollar volume (down 6.1%). Active listings fell 10.8% to 611, and new listings dropped 25.3% to 112.
  • Single-family: 43 sales (down 2.3%), benchmark $738,600 (up 0.1%), 82 days to sell
  • Townhouse: 3 sales (down 62.5%), benchmark $553,100 (down 0.5%), 144 days to sell
  • Condo/apartment: 5 sales (down 44.4%), benchmark $435,100 (up 6.6%), just 30 days to sell
Revelstoke was a bright spot, with single-family sales up 83.3% to 11 and a benchmark of $772,900. NE Salmon Arm held steady at 10 single-family sales.

1. Fewer sales, but prices are holding

Sales are down across most of the Okanagan. Even so, single-family prices rose in Central Okanagan (up 3.4%) and North Okanagan (up 5.6%), and condo prices rose in all three Okanagan regions. This is a slower market, not a falling one.

2. Sellers are holding back

New listings fell about 19% across the Okanagan. When fewer homes come to market, the ones that do get more attention. That's a big part of why prices are holding up.

3. Homes are taking longer to sell

Days to sell went up in most segments. North Okanagan condos now average 129 days, South Okanagan condos 144 days, and Central Okanagan townhouses 82 days. Buyers are taking their time, so pricing and presentation matter more than ever.

4. Where you are in the valley really matters

North and Central Okanagan prices are climbing, while South Okanagan single-family and townhouse prices are softening. Two homes an hour apart can be in very different markets right now.

What This Means If You're Buying

If you've been waiting on the sidelines, this fall could be a good time to start looking seriously. Here's why:
  • You have time. With homes sitting longer, you're less likely to get caught in a bidding war and more likely to have room to negotiate on price, conditions or closing dates.
  • Townhouses and South Okanagan homes offer the most leverage. These are the segments where prices have eased and inventory is building.
  • Detached homes in Kelowna and Vernon are holding their value. Don't expect big discounts there, but do expect a calmer, less rushed process than a few years ago.
  • Rates are stable for now. With the Bank of Canada holding at 2.25%, you can plan with more confidence. Get pre-approved early so you know exactly where you stand.

What This Means If You're Selling

There's still real opportunity for sellers who come in with a clear plan:
  • Less competition works in your favour. New listings are down sharply, so a well-presented home stands out.
  • Price it right from day one. Today's buyers are patient and well-informed. Homes priced in line with the market are still selling; overpriced homes are the ones that sit.
  • Presentation matters. Professional photos, thoughtful staging and strong marketing help your home grab attention in a more selective market.
  • Know your micro-market. A detached home in the Lower Mission is in a very different position than a townhouse in Penticton. Local, up-to-date data makes all the difference.

Frequently Asked Questions

Are home prices dropping in Kelowna?

Not for most property types. In September 2026, the Central Okanagan single-family benchmark price rose 3.4% to $1,057,200, and condo prices rose 2.0% to $496,700. Townhouses were the exception, down 5.5% to $696,600.

Is it a buyer's or seller's market in the Okanagan right now?

It's a fairly balanced market that leans toward buyers in some segments. Sales are down and homes are taking longer to sell, which gives buyers more time and negotiating room. At the same time, lower inventory is keeping prices stable for well-priced homes.

Where are the most affordable homes in the Okanagan?

North Okanagan has the lowest condo benchmark in the region at $324,300, and South Okanagan has the lowest single-family benchmark at $718,400. In Kelowna, Springfield/Spall and Rutland are among the more attainable areas for detached homes.

How long does it take to sell a home in Kelowna?

In September 2026, single-family homes in Central Okanagan took an average of 67 days to sell, townhouses 82 days, and condos 85 days.

Will interest rates go down soon?

The Bank of Canada held its rate at 2.25% in September and flagged rising inflation risks, so a cut in the near term isn't guaranteed. It's best to plan around today's rates and talk to a mortgage professional about your options.

The Bottom Line

September showed us a market that's slowing down, not breaking down. Fewer people are buying and selling, but prices across most of the Okanagan are holding steady or rising. Provincial and national experts are describing the same slow, steady pattern, with a stronger recovery expected in 2027.Whether you're buying your first home, moving up, downsizing or investing, the right strategy makes all the difference in a market like this. If you'd like to talk through what these numbers mean for your home, your neighbourhood or your next move, I'd love to help. Book a free, no-pressure strategy call anytime.

Phone: 250-863-1274 | Email: info@kararosart.com 

- Kara
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