THOMPSON-OKANAGAN BC • 2025 REAL ESTATE GUIDE

Thompson-Okanagan Real Estate 2025

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Kamloops, Kelowna, Vernon, Penticton, Merritt — Thompson-Okanagan real estate guide with BC PTT calculator.

Market Overview — Thompson-Okanagan

The Thompson-Okanagan is BC's most diverse Interior region — spanning the wine country of Kelowna and Penticton, the university city of Kamloops, and affordable communities like Merritt and Salmon Arm. Home prices range from Merritt's ~$400K to Kelowna's ~$820K.

Kelowna has become BC's third-largest city and is no longer an affordable alternative to the Lower Mainland — it's now expensive in its own right. Vernon and Penticton offer modestly lower prices with similar lifestyle amenities. Kamloops remains the most affordable large city in the region.

The Thompson-Okanagan draws retirees, remote workers, and students (TRU in Kamloops, UBC Okanagan in Kelowna). Alberta buyers are active in the wine country and recreational markets. The region has strong long-term demand fundamentals despite recent affordability pressure.

City & Community Comparison

Kelowna

~145,000
$820K
Avg Home Price
  • BC's 3rd largest city
  • Okanagan wine country
  • Strong tech and tourism sectors

Kamloops

~100,000
$570K
Avg Home Price
  • Thompson Rivers University
  • Transportation hub
  • More affordable than Kelowna

Vernon

~42,000
$650K
Avg Home Price
  • Okanagan North hub
  • Silver Star ski resort
  • Growing retirement destination

Penticton

~35,000
$640K
Avg Home Price
  • Between two Okanagan lakes
  • Wine and beach lifestyle
  • Retiree and recreation demand

Merritt

~7,300
$400K
Avg Home Price
  • Nicola Valley hub
  • Most affordable TO city
  • Highway 5 & 97C access

Salmon Arm

~18,000
$510K
Avg Home Price
  • Shuswap gateway
  • Strong Metro Van in-migration
  • Below Okanagan pricing
BC Property Transfer Tax in the Thompson-Okanagan

PTT is a significant cost across the Thompson-Okanagan. At Kelowna's average ($820K), standard PTT is $14,400 — well above FTB exemption thresholds. Kamloops (~$570K) and Merritt (~$400K) are more FTB-accessible. New builds under $835K in Kamloops and Merritt can still qualify for full FTB exemptions.

Kelowna PTT note: A $820,000 Kelowna purchase generates $14,400 in PTT. No FTB exemption applies above $525K resale. New builds under $835K may still qualify. Budget PTT as a full line item in your closing costs.

BC Property Transfer Tax Calculator — Thompson-Okanagan

1% first $200K • 2% to $2M • 3% to $3M • 5% above. FTB full exemption new homes ≤$835K, resale ≤$500K.

Frequently Asked Questions
Is Kelowna BC real estate still expensive in 2025?
Yes — Kelowna averages ~$820K for residential properties. It's no longer an affordable alternative to the Lower Mainland. Vernon and Kamloops offer better value within the Okanagan region.
Is Kamloops a good city to buy real estate in BC?
Yes — Kamloops offers the best value among larger Thompson-Okanagan cities. TRU drives rental demand; the city's transportation hub status supports diverse employment. Average price ~$570K.
What bank is best for Thompson-Okanagan buyers?
Interior Savings CU for local mortgages across the region. KOHO for $0-fee everyday banking. EQ Bank FHSA at 3.75% for first-time buyers building a down payment.
Can first-time buyers get a PTT exemption in the Okanagan?
In Kelowna, most resale homes exceed $525K so no exemption applies. In Kamloops and Merritt, resale homes under $500K do qualify. New builds under $835K qualify region-wide.

Bank Smarter While You Buy in Thompson-Okanagan

KOHO gives Thompson-Okanagan buyers $0 fees, 3% interest on savings, and 0.5–2% cash back to help cover PTT and closing costs.

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