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The quick read: Just 322 homes sold across the Central Okanagan in October — down 9.8% from September and 16.6% from last October, the fewest since February. The Bank of Canada raised its rate to 2.5% on October 28, its first hike since July 2023, and buyers pulled back. Sellers pulled back too: new listings fell 11.4% and inventory dropped to 3,757, the lowest since March. Homes that did sell took 83 days on average, but still went for 96.16% of asking price.

October was quiet in Kelowna real estate.

And the reason is no mystery.

The rate hike changed the month

Late in the month, on October 28, the Bank of Canada raised its overnight rate by a quarter point to 2.5 percent.

It was the central bank's first hike since July 2023, and its first move in a year after seven straight holds.

The Bank pointed to inflation, which hit 3.1 percent in September, with gasoline prices up 27.8 percent from a year earlier.

High energy prices are spreading into other prices, the Bank warned, and it said it may need to raise again, though it will go carefully.

The next decision is December 9.

Sales fell across the board

Just 322 homes sold across the Central Okanagan in October, according to the Association of Interior REALTORS.

That is down 9.8 percent from September and down 16.6 percent from last October, and the fewest sales since February.

Single-family homes took the hardest hit: only 129 sold, down 24.6 percent from last year, though the average price held at $1,090,296 and the median at $935,000.

Condos were softer still on price.

Only 75 sold, and the average price of $443,504 was the lowest in the past 13 months.

Townhomes were the one bright spot for prices, with the benchmark up 4.4 percent in a month to $727,400, though only 43 sold.

Sellers are waiting too

Buyers are not the only ones sitting out.

New listings fell 11.4 percent from September to 832, and active inventory dropped to 3,757, the lowest since March.

Homes took an average of 83 days to sell, the longest since January.

But the homes that did sell went for 96.16 percent of asking price, closer to list than a year ago.

That is the tension in this market: fewer buyers and fewer sellers, with neither side in a hurry.

What to watch

The number to watch is the five-year bond yield, which averaged 3.52 percent in October and eased to 3.46 percent by November 2.

If it keeps easing, fixed mortgage rates can settle, and buyers may come back in the spring.

If it climbs again, fixed rates follow.

Two risks sit under all of this: the Bank of Canada may hike again on December 9, and Canada lost 68,300 jobs in September.

Job worries keep buyers on the sidelines.

For now, buyers have more choice and more time than they have had in a while, while sellers who do list are finding that a well-priced home still sells close to asking.

Sources: Michael A. Jones, Royal LePage Kelowna, Kelowna Real Estate Market Report: October 2026, November 3, 2026; Association of Interior REALTORS; Bank of Canada, October 28, 2026.