The Okanagan real estate market entered 2026 at a measured pace as economic uncertainty, higher unemployment, and cautious consumer confidence continued influencing buyer activity across the region. While market conditions remained relatively stable overall, sales activity and pricing continued to trend below long-term historical averages.

Kelowna’s unemployment rate climbed to 8.9% in March 2026 — the highest level seen since the early stages of the pandemic. Unlike previous downturns, however, this increase has not been caused by widespread layoffs. Instead, the local economy has struggled to generate enough new jobs to support the large number of people who relocated to the Okanagan over the past several years.

Across the entire Okanagan region, Q1 2026 recorded 1,605 residential sales totaling approximately $1.2 billion in dollar volume, representing a 3.8% decline in sales activity and a 6.5% reduction in transaction value compared to Q1 2025.

 

 

The Central Okanagan remained the region’s most active market through the first quarter of 2026, though conditions continued to favour buyers overall.

During Q1:

Inventory levels improved substantially compared to the supply shortages experienced during the pandemic years:

Homes also continued taking longer to sell compared with peak-market conditions:

Although activity remains below historical norms, the increase in available inventory has created significantly more opportunity for buyers, particularly in price ranges under $1 million where supply has more than doubled compared to pandemic-era lows.

 

 

The North Okanagan continued to show relative stability despite softer overall transaction volumes.

Q1 2026 sales included:

Inventory levels remained elevated:

Average selling times remained slower than balanced-market norms:

The North Okanagan has generally held pricing more effectively than some higher-priced markets across BC, particularly within more affordable housing segments. Buyers continue benefiting from increased negotiating power, though properly priced homes are still moving steadily.

 

 

The South Okanagan experienced softer activity overall but maintained relatively balanced inventory levels.

Q1 sales included:

Available inventory included:

Average selling times were:

 

The Shuswap and Revelstoke region remained relatively steady throughout the quarter.

Q1 activity included:

Inventory totals sat at:

Average days on market were:

 

One of the biggest shifts entering 2026 has been the improvement in available inventory. Active listings across the Okanagan totaled 5,356 properties in March 2026, while Q1 saw 4,833 new listings enter the market.

Despite softer economic conditions, the region has not experienced a major increase in financially distressed listings. Foreclosure properties have risen modestly and now sit at their highest levels in roughly a decade, though they still account for only 1.1% of total listings — far below levels seen during the downturn in 2016.

Pricing across most regions has remained relatively flat since the correction that followed the peak market of 2022. More affordable markets have generally held value better than luxury-oriented segments, while increased inventory has helped gradually improve affordability for local buyers.

 

 

The Bank of Canada has maintained its benchmark interest rate at 2.25% since October 2025. However, fixed mortgage rates have moved higher as bond yields climbed due to ongoing geopolitical tensions and U.S. tariff pressures. Expectations for additional significant rate cuts have faded considerably.

Meanwhile, Premier David Eby announced Kelowna is expected to receive an exemption from BC’s short-term rental restrictions due to the city’s elevated rental vacancy rate. If approved, this could help absorb a growing amount of condo inventory originally intended for short-term rental use while also supporting the region’s tourism economy.

Investor confidence remains cautious following several provincial policy changes introduced in the 2026 BC budget, including:

 

The Okanagan market continues transitioning toward more balanced conditions after several years of extreme supply shortages. Buyers now have substantially more inventory, more negotiating power, and more time to make purchasing decisions.

At the same time, spring showing activity increased noticeably throughout Q1 2026 thanks to an unusually mild winter. While much of that interest has not yet translated into closed sales, activity levels are expected to gradually improve heading into summer.

The federal government’s passage of Bill C-4 — introducing a GST rebate for first-time buyers purchasing newly built homes under $1 million — is also expected to support entry-level demand moving forward.

Overall, Q1 2026 reflected a market still working through economic uncertainty but gradually moving toward healthier balance. Buyers continue benefiting from improved selection and affordability compared to recent years, while sellers face a more competitive environment that rewards strategic pricing and strong presentation.

 

 

With ample inventory, reduced competition, and motivated sellers, early 2026 presents an excellent opportunity for buyers. Whether you’re upgrading, downsizing, or relocating to the Okanagan, this market offers negotiating power and selection. Want to explore your options? I offer a free, personalized buyer consultation to help you make confident and informed decisions.

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Despite seasonal slowdowns, well-priced and well-presented homes continued to move in Q4. As the market transitions into spring, now is the time to prepare your home to stand out. I provide full-service marketing, staging support, and a clear pricing strategy to help you get top dollar.

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At Okanagan Properties Group, our team's top priority is ensuring that our clients are satisfied with the ease of their buying or selling experience while helping them keep more of their investment. Our collective knowledge and experience in Real Estate ensure our clients receive the absolute best price possible, and that the process goes smoothly. We work together as a team, thinking quickly on our feet and being deliberate in everything we say, making us master negotiators and increasingly successful in this ultra-competitive industry!

 

OPG personalizes our approach to each unique situation. We are compassionate people who strive to understand our clients' unique situations so that we can better accommodate their needs. Clients can be assured that we will take the time to build a relationship of trust, where their individual goals, values, and needs will be reflected in real estate recommendations and services.

 

The Markets - The housing market is a multifaceted and dynamic industry. Successfully reading changing market conditions requires careful and consistent observation of changes happening. Being completely immersed in the world of real estate gives OPG a front-row view of what is happening in the Okanagan Real Estate Market.

 

Client Care and the Technology Advantage - OPG is committed to fulfilling and surpassing the expectations anyone would have of a real estate team. We have developed a paperless business model for ourselves and our team. Through the use of paperless technology, we exponentially increase our efficiency to provide our clients with timely and pertinent information with professional advice so that they can make the best decisions possible in today's fast-paced market!

 

The paperless model is not only eco-friendly and more efficient, it also results in benefits to the client such as faster and tidier completion of contracts and paperwork, increased organization, and electronic filing for both OPG and our clients, as well as easily accessible data and contracts for quick decision-making in this fast-paced industry.