The Kelowna Real Estate Marketin One Image

This week on the heels of another interest rate drop, the graph speaks for itself—a clear correlation between Kelowna’s single-family home prices and the Bank of Canada’s overnight lending rate. As we move into the Spring, interest rates have been on the decline since late 2024, and consumer confidence appears to be returning to the real estate market.

However, one key factor to watch is the ongoing tariff discussions between Canada and the U.S., which could lead to higher costs despite a lower rate environment.

Looking at the graph, we’ve seen what lower interest rates did in 2020, sparking a rapid surge in home prices as rates hit 0.25%. While today’s market dynamics are different, and I’m not speculating on another 2020-2022-style boom, early indicators suggest that with rates potentially falling as low as 2% by July 2025, we could see Kelowna home prices climb again—if the economy holds steady. With average single family home price in February at $1,190,000,  those planning to buy may want to act before more buyers enter the market, while sellers could see demand increase.

There are no guarantees, and uncertainty remains. However, if you're buying and selling within the same market, your risk is naturally balanced. If you have questions on your particular situation, give me a call 250-801-0361

Have a great week!

Mark and Maddie Coons

(W)778-744-0872

(C) 250-801-0361