More than a month of 2025 has passed but we are still in awe of the great numbers from the final quarter of 2024 for the Canadian Housing market. British Columbia was not a stranger to these trends in 2024. Historically speaking, the housing market in British Columbia has experienced significant shifts and continues to evolve dynamically.
British Columbia’s housing market remains one of Canada’s most dynamic, driven by economic growth, population shifts, and evolving buyer preferences. With rising inventory levels and steady demand, the province continues to offer diverse opportunities for both buyers and investors.
Narendra Singh, MD The Maple Realty
This is evident in the growing sales, in spite of the higher-than-average prices in comparison to the country. Home prices in the province have remained high, with average prices surpassing CAD 700,000 post-2020. By December 2024, the average home price in BC reached over CAD 1,000,000, marking a 5% year-over-year (YoY) increase. Canada’s overall average home prices were noted to be around CAD 700k.
Total home sales in British Columbia for 2024 exceeded 74k, reflecting a modest 2% YoY rise, while the total transaction value (year-to-date totals till December 2024) reached over CAD 70 billion, a 3.2% increase from the previous year. Active listings rose by nearly 17%, reaching approximately 29k, with a sales-to-active-listings ratio (SALR) of around 15%, indicating balanced market conditions. The increase in active listings provided more opportunities for buyers, preventing a rapid surge in prices and maintaining stability in the market.
Among BC’s major housing markets, the Greater Vancouver Area, Victoria, and the Okanagan region stand out. In the Okanagan, Kelowna and West Kelowna have become key cities to watch. These cities offer different real estate dynamics, appealing to a diverse buyer audience, from young professionals and families to retirees and investors. Let’s take a closer look at Vancouver and Kelowna, two crucial markets shaping BC’s real estate trends.
Vancouver
Vancouver, along with its surrounding Greater Vancouver area, remains one of the most significant housing markets in Canada. Despite fluctuating economic conditions, housing prices in Vancouver have consistently stayed above CAD 1,000,000 in recent years. In December 2024, the average home price was around CAD 1,300,000, reflecting a 1.2% YoY increase.
Listing activity in Vancouver has been on the rise which has provided buyers with more options while maintaining a competitive market environment. The increased supply of homes has led to a more balanced market, though affordability remains a concern for many residents.
For 2025, it is expected that, as always, substantial portion of market activity will be driven by first-time homebuyers, particularly in the condo segment, where prices hover around CAD 800,000. Move-up and move-over buyers may continue their focus on single-family homes, typically priced between CAD 1,000,000 and CAD 1,500,000. Meanwhile, retirees are leaning towards single-family homes priced up to CAD 2 million.
One key factor keeping Vancouver’s market strong is its economic diversity. The city is a hub for industries like technology, finance, film production, and international trade. Employment opportunities remain a major driver of real estate demand. Additionally, Vancouver’s lifestyle appeal, with its proximity to nature, outdoor activities, and strong urban amenities, makes it a top choice for buyers despite its high prices. Vancouver remains a market to watch due to its economic strength, job opportunities, and desirability. Despite high property prices, demand remains steady, and the increased listings indicate a market that continues to attract various buyer segments.
Kelowna
Kelowna, located in the Okanagan Valley, is British Columbia’s third-largest metropolitan area and the seventh-largest city overall. As the largest interior city, it has become an attractive location for both homebuyers and investors.
Kelowna is known for its strong university presence, mild weather, and renowned wineries, making it a desirable place to live. The University of British Columbia’s Okanagan campus has played a crucial role in attracting students and young professionals to the area, contributing to the growth of the real estate market. The region’s wine industry and tourism sector also add to its economic stability, drawing both visitors and long-term residents.
The city’s housing market started 2025 on a strong note, following a year of moderate adjustments. In December 2024, the average home sale price in Kelowna was CAD 810k, reflecting a 2.0% YoY decline. However, listing activity increased, with total listings in 2024 rising by more than 5%. Total new listings marked an almost 14% YoY increase. Furthermore, the single home average prices went over CAD 1million.
Expectations for 2025 remain optimistic. January has already seen positive performance, and market activity is expected to be driven by move-up buyers, who are focusing on single-family homes priced between CAD 1,000,000 and CAD 1,500,000. First-time buyers are expected to remain active in the market, particularly in homes priced under CAD 800,000. Retirees continue to prioritize single-family homes, with a budget of up to CAD 2,000,000.
Kelowna’s population has been steadily growing, and its relative affordability compared to Vancouver makes it an attractive alternative for those looking to purchase a home in BC. The city offers a high quality of life with outdoor recreation opportunities, a thriving local economy, and a lower cost of living compared to the Lower Mainland. The increased housing supply is helping to accommodate this demand, creating a more accessible market for buyers.
Kelowna’s appeal lies in its growing population, economic expansion, and increasing housing demand. The city’s market remains a key area to watch, especially as more buyers explore opportunities outside of Vancouver and Victoria.
British Columbia’s housing market remains a dynamic and evolving landscape. Vancouver continues to command high property values with strong demand across different buyer segments, while Kelowna is establishing itself as a growing alternative with increasing listing activity and expanding buyer interest.
Affordability challenges in Vancouver are pushing some buyers toward emerging markets like Kelowna, where real estate options are more accessible. Meanwhile, Vancouver’s economic strength ensures that demand remains high despite rising home prices.
With 2025 already off to a strong start, both Vancouver and Kelowna will remain significant markets to follow. Buyers, investors, and industry experts will be keeping a close watch on how these markets continue to develop in the coming months. As economic conditions evolve, it will be interesting to see how these two cities balance supply, demand, and affordability concerns in the ever-changing real estate market.
Sources:
The presented data has been collected from various sources including blog.remax.com , kelonanow.com, bcrea.com, wowa.ca
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