Kelowna’s Inventory Isn’t What It Seems

Why Kelowna’s High Inventory Isn’t Telling the Full Story (And Why It Matters for You)

Kelowna Real Estate Market Insight – Spring 2025

Kelowna’s real estate market is showing the highest inventory levels we've seen in years — but that doesn’t mean what you think.

Yes, single-family homes currently show 11 months of inventory, which usually signals a buyer’s market. But here’s the twist — home prices in Kelowna aren’t dropping across the board. In fact, the average sale price has been increasing.

Let’s take a closer look at what’s actually driving inventory up and what it means for homeowners, buyers, and developers.

🔍 What’s Behind the Inventory Spike in Kelowna?

In February 2024, the B.C. government required cities with over 5,000 people to support Small-Scale Multi-Unit Housing (SSMUH).

Kelowna jumped on board by proposing to rezone over 26,000 single-family lots — allowing 2 to 6 units per property.

This opened the floodgates. Property owners and landowners saw an opportunity and rushed to list their homes as development sites or land assemblies.

📊 Massive Jump in Development Listings

From February to September 2024, development-related listings in Kelowna more than doubled — from 164 to 332.Yet sales stayed flat.

Today, we have 267 active development or land assembly listings.

But sales are slow, leading to 38 months of inventory in this segment alone.

(And that number is likely low — many listings may not even be tagged properly.)

Average price for development land? Around $830,000.

Average price for a single-family home in Kelowna? $1,190,000.

So yes, Kelowna’s total inventory looks high, but a big chunk of it is development-focused listings — not homes people are buying to move into.

🏡 Move-In-Ready Homes Are Still Selling Fast

Meanwhile, well-priced, well-maintained homes in desirable neighborhoods are seeing multiple offers. Some sell within days.

Buyers want homes they can live in now — not just land with future potential.

This is why calling Kelowna a full-on “buyer’s market” doesn’t tell the whole truth.

🤔 What Does This Mean for You?

🏠 Sellers:

Don’t assume your home’s value is tied to “months of inventory” headlines.

A clean, move-in-ready home in a great area could sell fast — even in this market.

Development land or tear-downs? Expect longer days on market and more price pressure.

🔑 Buyers:

This isn’t a market where you can lowball every offer.

Homes that check all the boxes are still in demand.

You need to know which segment of the market you’re in to make smart offers.

🏗️ Developers and Builders:

There’s opportunity in infill development, but it’s competitive.

Many listings are priced as if demand is high — but sales show otherwise.

Now’s the time to negotiate, plan ahead, and pick sites wisely.

🗳️ Looking Ahead: Policy Changes May Shift the Market Again

With a provincial election in April and new proposals like no GST for first-time home buyers, the under-$1M market could heat up.

👋 Need Help Navigating This Market?

Whether you’re a first-time buyer, seasoned investor, downsizing seller, or a Kelowna developer looking for your next project — I can help you make the right move.

📞 Call/text: 778-744-0872📩 Email: info@sellingkelownarealestate.com📲 Download my home search app: https://goagent.ca/33DC752D

🔍 Access code: 33DC752D

💡 Stay ahead in the Kelowna real estate market. Know the difference between data and decisions

Mark and Maddie Coons

Selling Kelowna Real Estate Group

Tel: 778-744-0872

email: info@sellingkelownarealestate.com