📊 Market Update

Buyer Power, Seller Reality
South Okanagan Market Pulse — Week Ending Feb 20, 2026

Data-driven insights for buyers, sellers, and investors across the South Okanagan

Riccardo Manazza South Okanagan REALTOR® with eXp Realty  |  Published February 21, 2026

Another week in the South Okanagan, and the numbers continue to paint a familiar picture: a market that's technically in buyer's territory, but nuanced enough that the simple "buyer's market" label doesn't tell the whole story. Thirty-four firm sales closed by February 20 — and where and what type of home sold reveals just as much as the raw count.

With 10 months of inventory on hand, sellers need to bring their A-game on pricing. But buyers shouldn't assume everything is ripe for lowball offers — well-priced homes are still moving, and in some pockets, moving quickly. Here's the full picture.

Quick Snapshot

The headline numbers for the week ending February 20, 2026:

The Months of Inventory (MOI) is calculated as: 1,473 active listings ÷ (34 sales × 4.3 weeks) = 10.07 months. Markets with more than 6 months of inventory are generally considered buyer's markets — we're well above that threshold.

Key sales metrics for the week:

• Average Sale Price: $684,282
• Average Days on Market: 97 days
• Highest Sale: $1,425,000 — Fourplex in Penticton
• Lowest Sale: $75,000 — Residential Lot in Princeton

Sales by Property Type & Area

Not all segments are moving equally. Here's how the 34 firm sales broke down by property type and location:

Detached homes drove 53% of all sales — a consistent trend. Penticton continues to anchor regional absorption with 19 of 34 sales, reinforcing its role as the South Okanagan's most active market. Sales remain concentrated under $750,000, where the bulk of buyer demand is focused.

Reading the Market

At 10 months of inventory, we're clearly in buyer's market territory by the numbers. But the real story is in the segments.

"Demand exists — but only at the right price. A recent price reduction triggered immediate showing activity, confirming buyers are watching closely."

You're seeing slightly more movement week-over-week — consistent with early spring behaviour — but buyers remain cautious and highly price-sensitive. The 31 price changes this week signal that sellers are adjusting to reality, and the market is rewarding that move.

What the Headlines Are Saying — And What They Mean Here

Numbers tell you what happened. Context tells you why — and more importantly, what's likely to happen next. This week, three timely pieces of research caught my attention, each one adding a layer to what we're seeing on the ground in the South Okanagan. Here's how they map to your local reality.

📍 Okanagan: "Central Okanagan Housing Market Ready for Upturn Cycle" — Feb 6, 2026

A report released earlier this month pointed to early signs of an awakening in the broader Okanagan housing market — but with an important qualifier: it's not a full rebound, and condo supply remains a meaningful headwind to any broad recovery story. The language is optimistic in direction, cautious in speed.

What does that mean for the South Okanagan specifically? It lines up almost perfectly with the "slightly more movement, but nothing to brag about" feeling on the ground. Detached homes in the right price range are attracting attention. But the condo side of the ledger remains complicated — not just because of local supply, but because the broader narrative around condo markets (oversupply in larger BC centres, strata fee increases, uncertainty around special levies) is spilling into buyer psychology even in smaller markets like Penticton and Osoyoos. Buyers who might otherwise consider a condo are hesitating, and that hesitation shows up in the numbers: 6 apartment sales out of 34 total this week, with condos still representing the segment most likely to see price pressure continue.

🏔️ BC: "B.C. Sees Drop in Home Sales Compared to Last Year" — Feb 11, 2026

Province-wide, BC home sales are running softer compared to the same period last year. That's not a South Okanagan-specific problem — it's a systemic one. When the broader provincial market is quieter than the year before, it creates a particular dynamic: buyers become more selective, they take longer to pull the trigger, and sellers who haven't adjusted their expectations to current conditions find themselves sitting with stale listings and growing frustration.

This maps directly to what's playing out locally. The 97-day average days on market isn't just a stat — it's a signal. Buyers are taking their time. They're not panicking into decisions. When a price sits at the wrong number, they'll simply move to the next option. But — and this is the critical flip side — when a price drop brings a listing into value territory, the response is immediate. That's exactly what happened with a recent local reduction that triggered showing activity almost overnight. In a softer provincial market, pricing precision isn't just helpful. It's the entire game.

🇨🇦 Canada: CMHC Housing Market Outlook — Feb 10, 2026

CMHC's latest Housing Market Outlook projects that national sales activity will pick up through 2026 — but still remain below historical averages. Housing starts are also expected to stay relatively low, with condo construction slowing as a major contributing factor in many markets. The overall read from CMHC is: gradual improvement, not a surge; recovery shaped more by cautious optimism than by any single catalyst.

For the South Okanagan, this macro framing supports a few things worth noting. The "late February into March feels better" instinct is backed up by the seasonal data and the improving rate environment that CMHC factors into its outlook. But the conversion of that improved feeling into actual firm deals will depend on two things: pricing discipline from sellers, and perceived risk reduction for buyers — particularly in the condo segment where uncertainty about starts, costs, and broader market sentiment continues to weigh on confidence.

The consistent thread across all three sources? Demand exists, but it's conditional. Buyers across BC and the Okanagan are not sitting on the sidelines out of disinterest — they're waiting for the right combination of value, confidence, and perceived risk to line up. When it does, they move. When it doesn't, they wait. The sellers winning right now are the ones who understand that equation and price accordingly.

What This Means for Sellers

In this market, sellers must compete — not just list. The data is clear: homes sitting at overpriced levels are invisible, while strategically priced (or reduced) properties are generating activity almost immediately. With 1,473 active listings and buyers averaging 97 days before committing, the power dynamic has shifted. Here's how to use that knowledge, not fight it.

• Pricing is strategy, not ego. Your home's value isn't what you paid for it, what you need out of it, or what your neighbour listed for. It's what a motivated buyer in today's market will pay. Those are very different numbers right now — and the sellers who reconcile that gap early are the ones who close.
• Overpricing equals invisibility. With 1,473 active listings, buyers have options. An overpriced listing doesn't just attract fewer offers — it often attracts zero showings. Buyers filter by price first in any digital search. If you're not in their range, you don't exist.
• Strategic reductions create movement. We saw this play out in real time this week — a targeted price adjustment triggered showing activity almost immediately. That's not luck. That's the market responding to a listing that suddenly made sense at the new number. A well-timed reduction can re-energize a stale listing and reset buyer perception entirely.
• Open houses matter more in slower markets. When organic search traffic slows, you need to create exposure through other channels. A well-executed open house can surface buyers who wouldn't have booked a private showing — and it signals confidence in the property.
• The first 14 days remain critical. New listing traffic peaks in the first two weeks. If you're not priced correctly at launch, you burn through your best window of exposure and train the market to expect a deal later. Price right from day one.
• Presentation is your silent negotiator. In a market with abundant inventory, buyers choose the listing that looks, photographs, and shows better than the competition — even at a slightly higher price. Professional photography, clean staging, and strong listing copy aren't optional extras right now. They're competitive necessities.
• Know your segment. Detached homes under $750K are moving. Luxury sits longer. Condos face sentiment headwinds backed by provincial data. Understanding which micro-market your property sits in shapes everything from your pricing strategy to your timeline expectations. Don't benchmark against the wrong comparable.

The sellers doing well right now aren't the ones who listed and hoped. They're the ones who came in with a clear plan, realistic pricing, and the willingness to adapt when the market gave them feedback. That mindset is the difference between a successful sale in 60 days and a frustrating listing that lingers for six months.

What This Means for Buyers

Buyers hold the advantage right now — but that doesn't mean patience is always rewarded. With 10 months of inventory and over 1,400 active listings to choose from, the conditions genuinely favour careful, methodical decision-making. The market is not hot — but it's not dead either. Prepared buyers are winning; unprepared ones are either losing good properties or wasting time on wrong ones.

• Negotiation power is real — use it intelligently. At 10+ months of inventory, you have leverage that didn't exist two years ago. But leverage used clumsily backfires. Lowballing a well-priced property doesn't get you a deal — it gets you ignored. Use your position to negotiate on terms (possession date, inclusions, conditions) as well as price.
• Inventory provides genuine choice — don't rush past it. Over 1,400 active listings means you can take the time to compare properly, visit multiple properties, and make a decision from a position of clarity rather than scarcity-panic. That's a rare and valuable position in any market cycle. Use it.
• Well-priced homes still move — don't assume they won't. The 97-day average is a market average. It does not apply to every listing equally. A correctly priced detached home under $750K in Penticton is not sitting for 97 days right now. When you find value at the right number, other buyers will find it too. Act accordingly.
• Get your financing sorted before you need it. A pre-approval isn't just a formality in this market — it's a competitive tool. Sellers who receive an offer accompanied by solid financing documentation take it more seriously, and in a market where conditional sales are rare (zero conditional sales recorded this week), a clean offer carries real weight.
• Watch the condo segment carefully. Provincial data and local numbers both point to condos being under more pressure than detached homes. That can mean opportunity for buyers with a long horizon and the right risk tolerance — but it also means doing your due diligence on strata financials, depreciation reports, and upcoming special levies before committing.
• Spring is coming — and competition with it. CMHC forecasts modest improvement in 2026 activity, and the seasonal pattern in the Okanagan consistently shows a pickup from March onward. If you've been watching and waiting, the window of lowest competition may be closing over the next 6–8 weeks. The best time to buy is before everyone else realizes it's a good time to buy.

The buyers winning right now are the ones who walk in prepared: financing confirmed, criteria defined, and a REALTOR® who can help them move quickly when the right property appears. In a market with 10 months of inventory, patience is a virtue — but hesitation on genuine value is still a risk.

Frequently Asked Questions

Riccardo Manazza

South Okanagan REALTOR® with eXp Realty — My Property Central Real Estate Group
License: RE603392

📞 (236) 457-4230  |  ✉️ riccardo.manazza@exprealty.com
Serving Penticton, Osoyoos, Oliver, Summerland, Keremeos, Princeton & Hedley

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