South Okanagan Real Estate Market Update: Week Ending December 12, 2025

The South Okanagan real estate market continued to reflect a measured, buyer-leaning environment this past week, shaped primarily by seasonality, pricing discipline, and growing interest-rate stability.

While activity remains softer than spring or fall levels, this is consistent with December trends rather than a sign of market weakness. The Bank of Canada’s decision to hold interest rates steady added an important layer of predictability, helping frame expectations as we move toward early 2026.

A Market Defined by Stability and Selectivity

The current market is not driven by urgency. Instead, it is defined by patience — particularly on the buyer side — and realism on the seller side.

Buyers are taking their time, comparing options, and negotiating where value is unclear. Sellers who understand this environment and price accordingly are still seeing results, while those holding onto peak-era expectations are experiencing longer days on market.

Weekly Market Snapshot

For the week ending December 12, 2025, activity across Penticton, Summerland, Osoyoos, Oliver, Keremeos/Cawston, Princeton, Kaleden/OK Falls, and Naramata showed the following:

• 38 new listings
• 22 price changes
• 23 firm sales
• 0 conditional sales
• 40 properties taken off the market
• 1,506 active listings
• Approximately 15.2 months of inventory
• Monthly absorption rate of roughly 6.6%

These figures place the South Okanagan firmly in buyer’s-market territory, with inventory levels well above balanced conditions.

Sales Performance and Pricing Trends

Based on the 23 firm sales recorded this week:

• Average sale price: approximately $607,000
• Median sale price: approximately $518,000
• Sale price range: $150,000 to $1,975,000
• Average days on market: approximately 130 days

The elevated days on market figure continues to reflect two overlapping trends. First, older listings that sat through much of the year are finally selling after price adjustments. Second, some properties remain overpriced and continue to inflate overall averages.

Demand has not disappeared it has simply become more selective.

Property Types Driving Activity

Sales this week were spread across a range of property types:

• Single-family detached homes: 8
• Apartments: 4
• Townhomes: 3
• Manufactured homes on owned land: 4
• Lots and acreage: 2
• Half duplex: 1
• Other or mixed-use properties: 1

Detached homes and manufactured properties on owned land remain key drivers of activity, while townhomes and apartments continue to appeal to downsizers and value-focused buyers.

Where Sales Are Happening

By area, sales activity was distributed as follows:

• Penticton: 11 sales
• Oliver and surrounding rural areas: 4 sales
• Keremeos / Cawston: 2 sales
• Princeton and rural areas: 2 sales
• Summerland: 1 sale
• Osoyoos: 1 sale
• Kaleden / OK Falls: 1 sale
• Naramata: 1 sale

Penticton continues to anchor market activity, with Oliver and several rural communities contributing consistent secondary volume.

Investor Sentiment and Market Psychology

Investor activity eased slightly this week, largely due to policy speculation and broader uncertainty rather than any confirmed regulatory changes. Importantly, property rights remain protected, and any significant policy shifts would require time to implement.

This temporary pause has reduced competition in some segments, creating opportunities for end-users and long-term buyers who are prepared and well-informed.

Why the Bank of Canada Rate Hold Matters

The Bank of Canada’s decision to hold rates sends a clear signal: stability is the priority.

Rather than pushing further cuts or risking renewed inflation pressures, policymakers appear focused on maintaining predictable conditions into 2026. For real estate, this helps buyers plan with more confidence and reduces uncertainty around mortgage qualification and long-term affordability.

Historically, markets respond better to steady conditions than to rapid policy swings.

What This Means for Sellers

Sellers are operating in a high-inventory environment where buyers have choice and leverage. Pricing hesitation particularly among those who purchased near peak levels in 2021 continues to extend days on market.

Homes that are well-presented, competitively priced, and aligned with current conditions are still attracting interest. Properties that are priced based on past market peaks are not.

Strategy now matters more than timing alone.

What This Means for Buyers

Buyers continue to benefit from strong negotiating power, especially on listings that have been sitting on the market for extended periods. That said, not every segment is soft.

Well-priced, move-in-ready homes can still attract attention and sell quickly. Prepared buyers who understand value and can act decisively remain best positioned.

The rate hold improves predictability and supports longer-term planning heading into 2026.

Looking Ahead

As we move through the end of the year, the South Okanagan market remains quiet but stable. December and January are historically slower months, and current activity aligns with seasonal expectations rather than systemic weakness.

With interest rates stabilizing and inventory elevated, early 2026 is shaping up to reward informed, strategic decision-making for buyers, sellers, and investors alike.

Ready to Connect?

If you’re thinking about buying, selling, or joining a forward-thinking real estate team, I’d love to connect.
I’m Riccardo (Rico) Manazza, REALTOR® with eXp Realty | South Okanagan, and part of the My Property Central Real Estate Group helping clients and agents succeed across Penticton, Oliver, Osoyoos, and beyond.

💬 Reach out anytime:
📞 Call or text: 236-457-4230
📧 Email: rico@mypropertycentral.ca
🌐 Website: www.riccardomanazza.realtor
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Let’s Stay Connected

If you enjoyed this article or want to stay in touch with what’s happening in the South Okanagan real estate market, let’s connect online:

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Disclaimer

This article is for informational purposes only and should not be considered financial or legal advice. Eligibility criteria and program details are subject to change. Always consult with a qualified mortgage professional and licensed REALTOR® or legal council for the most current information