Is Inventory Really the Answer in Kelowna Real Estate?
More inventory means lower prices—right?
That’s what Economics 101 teaches. But in the real world, especially here in the Kelowna real estate market, it’s not so simple.
Inventory Is Up, But Prices Still Climb
In March 2025, residential real estate in Kelowna saw the benchmark price hit $853,741. That’s up from:
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$809,035 in 2024
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$822,154 in 2023
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$765,026 in 2021
Even though inventory is up 57% and sales are down compared to the 10-year average, pricing hasn't dropped the way you'd expect.
So why are home prices in Kelowna still rising?
Because it’s not just about more homes—it’s about the right homes.
The Disconnect in Housing Supply
We don’t just need more houses. We need homes that match demand—especially for:
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Young families looking to upsize
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Retirees hoping to downsize
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First-time buyers needing affordability
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Builders and developers working on infill multifamily housing
Right now, there’s a mismatch between what’s being built and what people can actually afford or want.
Economic Tug of War
We’re seeing both micro and macroeconomic pressures in play:
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Stock market volatility ($6 trillion in value lost across North America last week)
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Canada lost 53,000 jobs—a sign the economy is cooling
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Wage growth is slowing to 3.5%
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Tariffs are driving up construction costs
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Inflation is keeping materials expensive, especially for builders focusing on multifamily infill projects in Kelowna
All of this is making it hard to bring affordable housing to market—even with rising inventory.
Interest Rates Might Drop... But Will Prices?
Yes, we may see interest rates drop due to economic pressure. That could boost demand again.
But here’s the problem: high construction costs and inflation aren’t going anywhere. So even if borrowing gets cheaper, housing prices in Kelowna may not fall like many are hoping.
Real Estate Isn’t About Timing the Market
The media often skews statistics to fit a story. Headlines might say it’s a “bad time to buy or sell,” but your situation is unique.
That’s why it’s more important than ever to get a custom real estate plan based on your goals—whether you’re:
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Selling a home in Kelowna
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Buying your first property
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Investing in a multifamily infill project
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A developer looking to build in high-demand areas
Let’s Make a Plan That Fits You
We're heading into an election year with housing affordability front and center. But politics aside, you need clarity on what’s best for you.
➡️ If you want help making sense of the market and creating a customized, no-obligation plan, reach out today.
Mark & Maddie Coons
Selling Kelowna Real Estate Group
📞 778-744-0872 (W)
📱 250-801-0361 (C)
📸 Follow us on Instagram: @sellingkelownabc
