South Okanagan real estate market seeing steady inventory and interested buyers

There is a positive outlook for the South Okanagan real estate market in 2025, with settled home prices and a lower interest rate bringing in buyers.

According to the Association of Interior Realtors, the number of sales in the Interior are well ahead of last year at this time. There were 716 residential sales last month, which was up more than 30 per cent compared to December 2023.

There was also an increase in listings compared to 12 months ago.

Specifically in the South Okanagan, inventory has grown 11 per cent compared to last December, something Lyndi Cruickshank, the broker owner at Engel & Volkers South Okanagan, said is encouraging.

"Well, I do not have my crystal ball, but I would say that I think it's going to be a good year. I think we'll see more homes coming on the market. I think that there is a sense of confidence in where interest rates are going, and that will allow people to start to make the moves that they do," she said.

"We know from past years that in order for people to be able to sell a home, they need to have a place to move to, and we've talked about it lots over the years, that when inventory is really limited, it's hard for people to think about putting their home on the market because they don't know where they're going to go.

"So when we see inventory come up a little bit, it allows for more movement on both the selling and the buying side."

She noted that usual holiday season slowdown was less intense this year, as milder weather saw some continued movement in the market.

And come January, people are thinking about what they want their future home to look like.

"We do start to see some calls, people getting out and starting to looking at properties. The fact that this has been such a warm January has made it easy for people to get around."

There is also increasing development in Penticton, from the innovation district to developers now being able to build up to fourplexes on single family development zoning.

"I think if you just go down the streets, you see buildings going up. We know that we need more homes. We need more homes everywhere. And it's great to see development continuing," Cruickshank added.

The South Okanagan saw another increase for single-family homes, with the benchmark price reaching over $760,100, up 5.2 per cent year-over-year.

Cruickshank said overall moderate home prices may see some increase.

"I'm not expecting us to see huge gains in the pricing," she added.

As 2025 will be a federal election year for Canada, that could add some uncertainty to the market.

"Because we don't know what's coming, for some people, that will cause pause, and for others, they will continue to move forward. There are policies that may have been committed to, but now may not be moved forward until we see new leadership in place," Cruickshank said.

Her advice for the people looking to buy this year is to do their homework.

"Take the time they need, to find the trusted professional that they need, that they feel can do the job that they need done, and to get out and look at the homes that they feel might be the right homes for them, talk to their mortgage broker, talk to their bank, and enjoy the process."

Photo: The Canadian Press