B.C. home sales continued to fall in February

Down she goes

In February, the B.C. housing market remained affected by economic uncertainty due to unstable trade relations and declining consumer confidence. For the third consecutive month, home sales decreased, with seasonally adjusted MLS® home sales in the province totaling 5,691 units, marking an 11.3% decline from the previous month. Compared to the same period last year, home sales in the province dropped by 7.3%.

Sales experienced a notable decline across nearly all of B.C.'s economic regions. In the Greater Vancouver Area, home sales dropped by 12.8 per cent, with a downward trend observed over the past three months. Home sales also decreased in South Okanagan (-28.0 per cent), Okanagan-Mainline (-16.1 per cent), and Chilliwack (-20.2 per cent).

On Vancouver Island (excluding Victoria), sales fell by 9.1 per cent, while Victoria saw a decrease of 5.7 per cent. Sales also declined in Kamloops (-6.2 per cent) and Kootenay (-9.9 per cent). The only region to see an increase in sales was Northern BC, with a 14.5 per cent rise during the month.

The average home price in B.C. dropped by 1.9 per cent in February to $947,749, now standing 11.7 per cent below the historical peak in February 2022. The housing supply significantly contracted during the month, with residential new listings decreasing by 17.3 per cent. Although pent-up demand remains cautious, market conditions favour buyers, as indicated by the sales-to-new listings ratio of 39.7 per cent in February.

Regionally, lower prices were recorded in Greater Vancouver (-1.1 per cent), Vancouver Island excluding Victoria (-2.9 per cent), Victoria (0.9 per cent), and the Okanagan-Mainline (-2.0 per cent). On the contrary, prices jumped 13.6 per cent in the Kootenay, 5.7 per cent in South Okanagan and Chilliwack by 3.7 per cent.

That said, average prices can mask compositional sales eff ects and the benchmark price index. This accounts for home attributes and product composition which fell in February by 0.5 per cent. In Lower Mainland, they decreased by 0.8 per cent, down 1.4 per cent in the Okanagan and 0.5 per cent on Vancouver Island (excluding Victoria).

Although interest rates are falling, housing market activity with be subject to the impact of macro-factors in the near months. The possibility of layoff s will keep consumers reluctant to re-enter the market, especially in expensive markets like B.C. That said, B.C.’s exposure to tariff s is relatively smaller than other provinces given lesser trade ties to the United States. However, forestry communities face considerable trade risks.

SUMMARY

• Economic Uncertainty: Trade instability and low consumer confidence continued to impact the market.

• Declining Sales:

  • Home sales dropped 11.3% from the previous month (seasonally adjusted).

  • Sales were down 7.3% compared to the same time last year.

  • Most regions saw declines, including:

    • Greater Vancouver (-12.8%)

    • South Okanagan (-28.0%)

    • Okanagan-Mainline (-16.1%)

    • Chilliwack (-20.2%)

    • Vancouver Island (excluding Victoria, -9.1%)

    • Victoria (-5.7%)

  • Only Northern B.C. saw an increase (+14.5%).

• Prices & Supply:

  • Average home price fell 1.9% to $947,749 (now 11.7% below the 2022 peak).

  • New listings dropped 17.3%, tightening supply.

  • Buyers have an advantage (sales-to-new listings ratio: 39.7%).

• Regional Price Changes:

  • Price drops: Greater Vancouver (-1.1%), Vancouver Island (-2.9%), Okanagan-Mainline (-2.0%).

  • Price increases: Kootenay (+13.6%), South Okanagan (+5.7%), Chilliwack (+3.7%).

  • Benchmark prices (accounting for home features) fell slightly (-0.5% overall).

• Future Outlook:

  • Interest rates are falling, but economic concerns (possible layoffs) may keep buyers cautious.

  • B.C. has less U.S. trade exposure, but forestry-dependent areas face higher risks.

Long Story Short

The market is slow, with falling sales and prices in most areas. Buyers have more options, but economic worries are keeping demand low. Only Northern B.C. saw growth.