Hi ,

Here's the moment you've all been waiting for (maybe just in my mind): December's final numbers.

2025 IN REVIEW!!

Just a quick refresher, our local real estate board, the Association of Interior Realtors (AOIR), compiles sales stats by region each month with running year-to-date figures.

If you look at the overall market, then listings were down over 7%, unit sales were up 12%, sales volume was up almost 10%, and median prices were down almost 1.5%.

Ok, good night everyone, my job is done!

Alright, I know you know that isn't the whole story.

That's just the overall average. And average's can lie.

Here’s what happened:

Single Family Homes, kind of like our gold standard, actually didn't see a big change in median prices. We sold almost 10% more homes over 2024, but those deals were often a LOT harder to put together and get over the finish line.

Townhouses held in there with prices remaining flat, but unit sales were way up.

The Apartment (aka condo) segment in our town seemed to be hit in the price department pretty badly, losing almost 10% on median pricing. Though the unit sales for them were up as well.

What does this suggest? I'd say, as always, people prefer homes over condos. And townhomes are the midway between condo and single family. I don't have any hard stats to back this up, but I've also noticed a lot more multi-generational purchases than in years previous. With the cost of goods and homes rising, pooling resources is starting to make a lot of sense to a lot of families.

Even seniors looking to downsize would prefer a small rancher to a condo. With people having more robust health into later years, it's possible. So people are doing it. So that makes those small rancher/bungalow homes even more desirable than before…and leaves condos in the cold.

Predictions for 2026

"Those who use the crystal ball tend to eat glass," is a favorite quote of mine. But I'll take a stab at it anyway.

I think the worry over what the US will do for tariffs is mostly in the rearview mirror. Canada (the world really) I think has realized the US won't be the trade partner it once was for some time to come. Time to get busy with other trading partners! The more we get away from worry and uncertainty, the better markets tend to do.

CREA (Canadian Real Estate Association) seems to think we'll continue selling more units this year Canada wide, and prices to rise about 3%.

Economists are predicting that Bank of Canada rates will remain flat for 2026 and possibly into 2027. That will, hopefully, add a lawyer of stability to our markets and our pocket books!

The Wildcard

Recent events in Venezuela are of slight concern. If the US can essentially snatch a foreign leader out of their own country (no matter the reason), then what's stopping China from upping the ante and doing the same in Taiwan or Russia from expanding their war efforts? Or Trump from annexing Greenland?

More instability=more worry

More worry=uncertain market=Bad for our economy overall

Justin "taking-it-one-day-at-a-time" Love

2025 Okanagan Real Estate Market in Review