BC housing recovery cut short in February as escalating tariffs fuel uncertainty
British Columbia’s real estate market slowed in February, with residential sales dropping nearly 10% year over year, a decline the British Columbia Real Estate Association (BCREA) attributes to uncertainty surrounding US tariffs.
The 4,947 residential unit sales recorded across the Multiple Listing Service (MLS) Systems in February 2025 represent a 9.7% decline from the same month last year. The average MLS residential price also fell 2.4% to $964,349, while the total sales dollar volume decreased 11.8% to $4.8 billion.
Market activity was 28% below the 10-year February average, adding to concerns that trade disputes and economic volatility are spilling into the housing sector.
Year-to-date, BC’s residential sales volume is down 4.5% to $8.8 billion, with unit sales dropping 2.8% to 9,175. The average home price has also slipped 1.8% to $958,366.
For months, BC's real estate market had been showing signs of recovery, but that momentum stalled in February as tensions between the US and Canada escalated.
“After several months of growing momentum, market activity was hampered in February by the uncertainty surrounding tariffs,” BCREA chief economist Brendon Ogmundson said in the February report. “Apprehension from prospective buyers will continue amidst this unfortunate trade war but may be somewhat tempered by lower interest rates on the horizon."
The Trump administration’s March 4 tariff announcement imposed a 25% duty on most Canadian and Mexican imports, along with a 10% tariff on Canadian energy. In response, Canada introduced $30 billion in countermeasures against US goods.
The US temporarily delayed tariffs on certain goods under the Canada-United States-Mexico Agreement (CUSMA), prompting Canada to pause a second wave of countermeasures – though its initial tariffs remain in effect.
Read next: Canada to spend $6.5bn to help businesses mitigate impact of US tariffs
While home sales are slowing, the cost of building new housing is rising. A Vancouver developer warned that Canada’s retaliatory tariffs could backfire by making construction even more expensive.
Brad Jones, chief development officer at Wesgroup Properties LP, criticized Canada’s decision to impose counter-tariffs on over 100 types of construction materials, arguing that it will exacerbate affordability issues and undermine housing supply efforts.
“We formally request that you exempt new construction materials from retaliatory tariffs to provide some stability for the provision of new housing in Canada,” Jones wrote in his March 7 letter to federal ministers. “The Canadian housing sector is already under immense strain.”
He said the government's housing affordability goals conflict with its trade policies, which could further slow development projects and push home prices higher in the long run.
“[Canada’s retaliatory tariffs are] cutting the housing industry off at the knees,” Jones said.
“These retaliatory tariffs stand in direct opposition to the government’s stated goals on housing and will only serve to worsen the housing crisis for years to come.”
Despite uncertainty surrounding trade policies, some relief may come from lower interest rates, with economists expecting an imminent Bank of Canada cut.
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