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.
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.
45ET55JSYA
Get KOHO + $100 Bonus →