Interior real estate market gets close to normal December figures, but not all the way back

Positive finish for market

Photo: Contributed

The Interior real estate market is showing signs of a rebound going into 2026, but it's not there yet.

The Interior real estate market’s shaky year finished on a strong note in December, as figures neared normal levels to close out 2025.

There was the usual December sales dip over the entire Association of Interior Realtors region as people focused on the holidays, but there was still a 10.4% increase compared to December 2024. The AIR region includes the Okanagan, Kamloops, Kootenays and South Peace River.

“Despite navigating a year of economic shifts, policy changes and evolving buyer and seller behaviour, the residential real estate market wrapped up the year on steady ground,” AIR president Kadin Rainville said in a press release. “Activity finishing within the 10-year average range reflects a market that has largely recalibrated and normalized, setting a positive and stable foundation as we move into 2026.”

December benchmark prices were down from November in nine of 12 sub-categories across the region, including a whopping $75,000 drop in the Central Okanagan townhouse group. When compared to last December, half of the benchmark prices were down in the 12 sub-categories, which shows the market still has some work to do.

The total value of sales in 2025 suggests a rebound, as there was $3.58 billion in market activity in Central Okanagan—up from $3.15 billion in 2024. There were 9,852 sales overall in Central Okanagan in 2025, compared to 8,262 the year before. Sales and values also increased in North Okanagan, South Okanagan and Kamloops.

There was also 1,017 new listings last month across the region, which represented a 9.6% increase compared to last December.

“The increase in new listings will be a welcome development, providing not only more choice but also helping to foster more balanced market condition,” Rainville said.

In the Kootenay region, 153 sales were recorded last month, marking a 25.4% increase compared to December 2024, yet down from November’s 193 units sold. There were 174 new listings in December, marking an 8.1% increase compared to the same month the previous year, yet down from November’s 254 new listings. The overall active listings in the Kootenay region saw a 4.3% decrease compared to December 2024 with 1,189 listings recorded.

“The Kootenay real estate market recorded activity levels consistent with what we typically expect in December, with prices holding relatively stable across much of this diverse region,” Rainville said. “While inventory constraints typically place upward pressure on prices, the increase in new listings is a positive development as we head into the new year.”