September gave us a much clearer look at the South Okanagan Real Estate market after an August that was heavily affected by the wildfires.

Across the South Okanagan, 133 residential properties sold in September, down 8.3% from the same month last year. That's a significant improvement from August, when sales were down 33.7% year over year. September's total dollar volume was $78.1 million, down 19%, while active listings were 10.5% lower and new listings were down 13.9% from September 2025. So while buyers clearly returned to the market in September, they did so cautiously — and the pricing numbers are beginning to reflect that.

Prices Are Becoming More Important to Watch

Unlike August, when benchmark prices remained relatively resilient despite very low sales volumes, September showed more softness in some property categories.

The South Okanagan benchmark price for a single-family home was $718,400, down 6.2% from September 2025. There were 62 single-family sales, down 19.5%, while inventory was also down 13%. Interestingly, homes that did sell moved somewhat faster, with the average days to sell falling 8.7% to 78 days. Townhouses also softened, with the benchmark price falling 5.7% to $486,700 and sales down 41.2%. Apartments were the outlier: although apartment sales declined 23.3%, the benchmark price actually increased 5% to $445,300.

That tells us there isn't one single story across the market. Property type, price point and location matter more than ever.

What Does This Mean for Sellers?

For sellers, September reinforces something we've been talking about for several months: pricing correctly from the beginning is critical.

Buyers are active, but they are selective. They are comparing properties carefully and are less inclined to stretch for a home they believe is overpriced.

At the same time, active inventory across the South Okanagan remains more than 10% below last year's level, so sellers aren't necessarily competing against an oversupplied market. That creates an interesting balance. There are fewer homes available, but buyers still expect value.

A home that is well presented, properly marketed and priced according to current conditions can absolutely sell. A property priced based on last year's market, or based on what a neighbouring home once sold for, may struggle.

What Does This Mean for Buyers?

September continues to offer buyers something they haven't always had in the Okanagan: negotiating room.

Prices in several segments and communities have softened, and buyers generally have more opportunity to negotiate on price, conditions and possession dates than they did during stronger seller's markets.

That doesn't mean every seller is desperate to sell, and it doesn't mean every property is going to sell below asking price.

It does mean buyers can afford to be thoughtfull.

The key is distinguishing between a property that is simply overpriced and one that represents good value in today's market. With inventory actually lower than last year, waiting indefinitely for a large influx of listings may not necessarily create better opportunities....

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