South Okanagan Real Estate Market Update – October 26 to November 1, 2025 | Insights by Riccardo (Rico) Manazza, REALTOR®

The South Okanagan continues to evolve as one of British Columbia’s most diverse and opportunity-rich real estate markets. As the fall season moves toward winter, new listings, inventory shifts, and national interest-rate cuts are shaping the decisions of both buyers and sellers.

This weekly analysis by Riccardo (Rico) Manazza, REALTOR® at eXp Realty, examines how these dynamics are unfolding across Penticton, Oliver, Osoyoos, Summerland, Keremeos, Princeton, and surrounding communities.

1. Market Overview

Between October 26 and November 1, 2025, the South Okanagan recorded:

• New listings: 49

• Price changes: 48

• Sales: 27

• Off-market listings: 112

• Active inventory: 1,777

This equates to an absorption rate of roughly 1.5 percent and an estimated 15–16 months of inventory (MOI)—a clear indicator that buyers still have leverage.

However, with fewer listings entering the system and a national rate cut easing borrowing costs, early signs suggest that activity could firm up heading into late Q4.

2. Key Movements in Price and Supply

Price reductions remain a defining feature of the 2025 fall market. Mid-range homes saw the most adjustment, with some dropping $20,000 to $50,000 to meet buyer expectations.

• Largest price reduction: A rural acreage repositioned from $3.5 million to $2.95 million (-15.7 %).

• Smallest reduction: Manufactured homes and residential lots trimming $10,000–$15,000.

This ongoing recalibration shows that sellers are beginning to align with market realities, particularly in the $400 K–$800 K range, where buyer traffic remains strongest.

3. Sales Performance by Region

Total sales for the week = 27 transactions across all sub-markets.

Regional Breakdown:

• Penticton (PE): 12 sales (44 %) – mix of condos, single-family homes and duplexes.

• Osoyoos (OS): 4 sales – steady entry-level strata and manufactured activity.

• Oliver (OL): 2 sales – detached homes averaging $675 K.

• Summerland (SU): 2 sales – quickest DOM (~60 days).

• Keremeos / Cawston (KE): 2 sales – affordable rural mix.

• Kaleden / Okanagan Falls (KO): 2 sales – acreage properties (~224 DOM).

• Princeton (PR): 2 sales – rural acreage and manufactured homes.

Average sale price: ≈ $468,000 Average DOM: ≈ 98 days

The lowest sale was a fractional apartment in Osoyoos ($36,500), while the highest was a Summerland detached home ($850,000).

Penticton continues to lead in both volume and diversity, confirming its status as the region’s economic hub and the benchmark for pricing trends across the South Okanagan.

4. Days on Market and Buyer Behaviour

Homes are averaging about three months on the market, but variation is wide. Move-in-ready, modernized homes near schools and services sell quickly, while acreages and dated manufactured homes remain slower to move.

Buyers are becoming more analytical—comparing energy efficiency, secondary-suite potential, and proximity to amenities. This pattern reflects a maturing regional market where value is assessed beyond square footage.

5. Interest Rate Relief and Financing Impact

On October 29, the Bank of Canada trimmed its key rate by 25 basis points (to 2.25 %), the second consecutive cut of 2025. All major banks quickly lowered prime rates by 0.25 %.

This shift offers two immediate outcomes:

1. Improved affordability for variable-rate borrowers—a modest but meaningful difference for first-time buyers.

2. Renewed confidence among move-up and downsizing sellers anticipating higher activity over winter 2025–26.

While fixed mortgage rates are slower to react, the 5-year Government of Canada bond yield remains steady near 2.7 %, suggesting stability for those locking in before year-end.

6. Zoning and Housing Policy Updates

The provincial Small-Scale Multi-Unit Housing (SSMUH) initiative is reshaping the housing landscape throughout the Okanagan. Municipalities must permit two to four units per lot in most residential areas by the end of 2025.

• Penticton: Adopted R4 zones allowing up to four units per lot.

• Oliver & Summerland: Active bylaw revisions aligning with Bill 44 compliance.

• Osoyoos & RDOS Areas: Phase 2 OCP amendments in progress.

These changes will eventually diversify housing stock and open doors for small-scale investors, while giving sellers of well-located properties new value propositions.

7. New Construction and Permit Activity

Despite tighter financing conditions, construction across the South Okanagan remains steady. Penticton’s building-permit reports show a consistent stream of smaller residential projects—suite additions, infill homes, and energy upgrades.

Regional builders are adapting by focusing on smaller footprints, multi-use zoning, and energy-efficient materials rather than large, speculative developments.

This pivot aligns perfectly with provincial climate-smart housing objectives and offers investors a window into sustainable long-term value.

8. Population and Immigration Factors

According to Statistics Canada, Canada’s population reached 41.65 million as of July 1, 2025, representing the slowest quarterly growth in years (+0.1 %).

The federal government’s 2025–27 Immigration Plan and pending 2026–28 framework indicate reduced temporary resident intake and more balanced permanent resident targets.

For the South Okanagan, this means a greater emphasis on local lifestyle migration—buyers from within B.C., Alberta, and Ontario seeking year-round climate advantages and flexible work-from-anywhere options.

9. Expired and Off-Market Insights

A total of 112 listings came off the market this week (expired or cancelled). Many had listing contracts between 120 and 400 days. Long DOM in this group highlights a pricing gap between seller expectations and buyer reality.

Interestingly, properties with clear suite potential or updated mechanical systems showed the highest re-listing success after strategic price adjustments.

10. What This Means for Sellers

For homeowners considering listing this fall:

• Stay competitive with strategic pricing; buyers are educated and value-driven.

• Highlight unique features (suite potential, energy efficiency, location).

• Expect a longer marketing cycle but potentially higher quality offers as rates ease.

For those already on the market beyond 60 days, a review of pricing and presentation is essential. Small adjustments to staging and marketing messaging often yield faster results than large price drops.

11. What to Expect Heading Into Winter 2025

As the Bank of Canada’s rate cut ripples through lender pricing, we expect a slight uptick in showings and accepted offers over the next 6–8 weeks. Historically, the South Okanagan sees a second wave of activity in January as buyers prepare for spring possession.

Sellers who adjust early and maintain their market presence through winter are often first to benefit from that rebound.

12. Why Work with Riccardo (Rico) Manazza

Choosing the right real estate agent in Penticton or the South Okanagan means partnering with someone who knows each micro-market and stays ahead of policy and economic shifts.

Riccardo (Rico) Manazza combines real-world market experience with data-driven analysis to help clients navigate pricing, positioning, and timing. Whether you’re buying a condo in Penticton, selling acreage in Oliver, or investing in Osoyoos, Riccardo and the MyPropertyCentral Real Estate Group provide strategic guidance grounded in transparency and results.

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14. Final Thoughts

Despite a slow autumn for transactions, the South Okanagan market remains stable and data-driven. Inventory is high but healthy, and the recent interest-rate cut signals the beginning of a more balanced cycle.

For sellers, this is a moment to position strategically and capitalize on pent-up demand as winter approaches. For buyers, it’s an opportunity to secure quality inventory before competition returns in spring 2026.

Connect with Riccardo (Rico) Manazza

If you’re looking for a trusted real estate agent in Penticton or the South Okanagan, reach out anytime:

Riccardo (Rico) Manazza, REALTOR® | eXp Realty | South Okanagan
📞 Direct: 236-457-4230
📞 Assistant (24/7): 236-774-7859
🌐 www.riccardomanazza.realtor | mypropertycentral.ca | livingintheokanagan.ca
📅 Book a Meeting Online

If you call after hours, Riccardo’s assistant will happily schedule your appointment anytime — 24 hours a day, 7 days a week.

P.S. If you’re curious about what’s attracting people to Osoyoos, Oliver, or Penticton this winter, keep an eye on the next market update and follow the Living in the Okanagan blog for lifestyle stories and community features.