Home sales in British Columbia experienced a significant decline in February, with a 9.7% year-over-year drop in residential unit sales. This downturn, affecting every region of the province, is expected to persist, with economists predicting continued struggles into 2026. The total sales value also saw a substantial decrease, reflecting a broader cooling of the housing market.
Key Takeaways
- February saw 4,500 residential unit sales, 33% below the 10-year average.
- Sales value dropped by 12.3% compared to February of the previous year.
- Every region in B.C. experienced a decline in home sales.
- The Greater Vancouver area saw a nearly 9% decrease in unit sales year-over-year.
- Despite falling sales, the number of new listings increased in some areas, such as Greater Vancouver.
Market Performance
In February, B.C. recorded 4,500 residential unit sales, a 9.7% decrease from the same month in 2025. The total sales value amounted to $4.21 billion, down 12.3% year-over-year. Brendon Ogmundson, chief economist for the British Columbia Real Estate Association (BCREA), noted that "housing market activity continues to struggle, with sales declining from every region in the province compared to the same time last year."
Greater Vancouver's Slowdown
Within the Greater Vancouver region, unit sales fell by nearly 9% compared to February 2025. The average residential price in this area was $1,206,180, a slight decrease of 1.6% from the previous year. Concurrently, the number of available listings in Greater Vancouver rose by 6.3%, indicating a shift in market dynamics. However, the sales-to-active listings ratio declined from 14.2% to 12.2%, suggesting a weaker demand relative to supply.
Factors Contributing to the Lag
Historically, Vancouver's housing market has been characterized by high demand and limited supply, exacerbated by factors such as low interest rates, record immigration, and constraints on housing development. In recent years, rising costs of living, economic uncertainty, and high interest rates (though some have since decreased) have contributed to the current market slowdown. Tore Jacobsen, chair of the Fraser Valley Real Estate Board (FVREB), pointed to these economic conditions as potential drivers of the soft market.
Future Outlook and Potential Price Increases
Despite the current slump, a BCREA report warns of a potential significant increase in B.C. home prices by 2032, possibly by as much as 27%. This projection is based on concerns about unsold housing inventory, reduced construction activity, and stalled presales. The report draws parallels to the post-2008 recession period, where a slowdown in demand and construction led to a supply shortage and subsequent price surge when demand returned. The Canada Mortgage and Housing Corporation (CMHC) also notes a slowdown in housing starts, despite record completions in 2025, citing factors like low presales in the condo market and slower population growth.
