The Kamloops residential market entered spring 2025 at a subdued pace, dampened by ongoing economic uncertainty and a rising unemployment rate. In Q2, total home sales reached 714 units, bringing in approximately $457.6 million, marking a 2.5% drop in transaction volume and a 1.3% decline in dollar value compared to Q2 2024.
Setting aside the anomalies of 2020, this was the slowest second quarter since 2015. Furthermore, monthly sales levels for the year have consistently stayed well below the 10‑year average.
Local buyers continue to dominate activity, gravitating toward more budget-friendly listings, particularly homes with income potential, such as those offering basement suites or competitively priced units. In contrast, investor participation remains muted, primarily due to high interest rates and ongoing regulatory complexities.
While the segment continues to attract interest, the single‑family home market is decelerating amid affordability pressures as prices continue to rise faster than incomes, especially impacting first‑time buyers without existing equity. Apartment/condo sales have also slipped, reflecting a broader national trend away from smaller, low‑rise units.
Instead, ground-oriented multi-family housing, townhomes, duplexes, and row homes are emerging as the preferred entry point into the market. Notably, townhome sales rose by roughly 21.7% year‑over‑year between Q2 2024 and Q2 2025.
At the same time, construction cost inflation is pushing new build prices upward, which may dampen buyer interest in that segment going forward. With slower sales, inventory has built up, active listings reached 1,498 in June 2025, a 4% increase over the previous year, and the highest level since 2017. While still below 2010–17 cycle highs, rising inventory has given buyers more latitude and reduced urgency.
Buyers have largely adjusted to higher borrowing costs, but remain cautious; many are holding out for better opportunities or avoiding overpaying in a market that’s becoming more balanced. Meanwhile, Kamloops’ unemployment rate soared to 9.2% in June 2025, up from 5.1% a year prior, reaching the highest level in B.C. among major metro areas outside Ontario.
Although joblessness now affects around 7,600 people, the increase stems more from a rapidly growing labour force than widespread layoffs. The region peaked at 82,700 jobs in April, but job creation has not kept pace with population growth, a mismatch that could weigh on future housing demand.
On a broader scale, global volatility from Middle East tensions to U.S. trade negotiations continues to weigh on consumer confidence. While small business sentiment in B.C. has rebounded somewhat, inflation remains a concern for the Bank of Canada, which opted to hold rates steady in June. Unless inflation cools markedly, optimism is likely to remain restrained.
In March 2025, a Merchant Growth survey found that 71% of B.C. small businesses were proactively cutting spending, delaying expansion, or holding off on hiring. Major Canadian banks remain split on future rate moves: some believe rates have bottomed, while others expect cuts only if the economy weakens significantly.
In Summary
The Kamloops housing market shows no signs of dramatic change in the short term. For properties to move, they must be priced sensibly to align with today’s buyer expectations in a market that is clearly more balanced. Despite headwinds, elevated unemployment, and economic uncertainty, the local economy remains relatively stable, with its resilience supported by a solid regional base.
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