Central Okanagan Real Estate Market Update for 2026

By Nick Hazzi

Nick has been in the real estate industry for over 15 years and has a wealth of knowledge and experience. He is passionate about his clients and dedicated to ensuring they get the most out of real estate, providing value far beyond any sale.

If you have been following the real estate market over the past year, you may feel unsure about what is actually happening. Headlines point in one direction, conversations with friends suggest something else, and what you see in your own neighborhood does not fully line up with either view.

Some people believe the market has stalled, while others feel prices never truly adjusted. That confusion has caused many buyers and sellers to pause, waiting for clarity before making a move. When you strip away the noise and focus on local data from the Central Okanagan, the story becomes far more grounded and easier to understand.

The market did not heat up, but it did move. Sales activity increased year over year, with total transactions rising by roughly seven percent and overall sales volume climbing as well. At first glance, that sounds like a strong recovery. Pricing, however, remained mostly unchanged. Average sale prices moved very little, homes took slightly longer to sell, and seller discounts stayed consistent with the prior year.

This was not a fast-moving market, and it was not a weak one either. It was selective, which explains why it has felt confusing to so many people.

Growth came from one segment. The increase in activity did not happen evenly across the market. All meaningful growth came from single-family homes. Condo sales declined slightly, and townhomes remained mostly flat.

This tells us the market was not driven by affordability improving or first-time buyers rushing back in. Instead, buyers with existing equity led the activity. These buyers chose to skip compromise properties and move directly into single-family homes, which shows the market was driven by financial capacity rather than emotion.

Higher prices showed stronger conviction. When price ranges are examined, the pattern becomes even clearer. Sales growth increased as prices went higher. Homes above one million dollars saw the strongest gains, and the trend accelerated at higher price points.

This does not suggest optimism or speculation. It shows conviction. Capital did not leave the market. It shifted upward. The result is a split market, where the lower and middle segments hesitate while the upper end continues to move.

Inventory feels high, but pressure is low. Buyers today have far more choices than they did during the peak market years. Inventory levels are significantly higher than in 2021, while buyer demand is roughly half of what it was then.

That combination gives buyers confidence and leverage, allowing them to be patient and selective. Sellers, on the other hand, often feel frustrated because pricing expectations are still tied to earlier highs. Until those expectations adjust, friction remains, and the market feels slower than it actually is.

Long-term ownership still matters. Many people who bought in the past few years feel disappointed by the lack of short-term appreciation, and that reaction is understandable. Still, when you look at a five- or ten-year timeline, real estate has continued to build wealth for most owners.

The number of households that are truly underwater is small and concentrated among buyers who purchased during a narrow window in early 2022. The majority of homeowners remain well ahead, holding meaningful equity.

A key group is preparing to move. The next phase of the market is likely to be driven by homeowners who bought between 2018 and 2020. Many are now reaching the typical five to seven year ownership cycle, have accumulated substantial equity, and are entering peak earning years. These households often need more space and are well-positioned to upgrade, especially with today’s selection and more balanced pricing in higher-end homes.

Real estate decisions should feel informed, not stressful. When you understand where demand is coming from and how buyers are behaving, it becomes much easier to decide your next move with confidence.

If you’re thinking about buying or selling this year and have questions about how the current market affects your plans, feel free to call or text me at 250-878-6416 or email me at nick@vantagewestrealty.com. I am happy to help you evaluate your options and build a strategy that fits your goals.