Sales activity is picking up across the province, but global economic uncertainty could impact the market's trajectory
The British Columbia housing market saw a stronger start in January 2025, with home sales increasing compared to the previous year, according to new data from the British Columbia Real Estate Association (BCREA). However, despite the uptick in transactions, average prices declined slightly.
BCREA reported that 4,221 residential units were sold through Multiple Listing Service® (MLS®) systems across the province in January, reflecting a 6.4% increase from the same month in 2024. At the same time, the average MLS® residential price dipped by 1.0% to $949,560, down from $959,191 in January 2024.
Total sales dollar volume for the month reached $4 billion, marking a 5.3% year-over-year increase. However, despite the gains, the province’s MLS® unit sales remained 12% below the 10-year January average.
“As expected, 2025 is off to a better start in most regions across BC,” said BCREA chief economist Brendon Ogmundson. “January’s pickup in sales and listings may foreshadow a stronger 2025, caveated by global uncertainties which may trigger higher or lower rates from the Bank of Canada.”
One of the biggest unknowns for the housing market in 2025 is the direction of interest rates. The Bank of Canada lowered its key policy rate by 25 basis points to 3% on January 29, marking its sixth consecutive rate cut as it sought to support economic growth.
Newly released minutes from the central bank’s latest policy meeting revealed that trade tensions with the US played a key role in the decision.
President Donald Trump’s threats to impose tariffs on all Canadian imports have raised concerns about the long-term impact on Canada’s GDP, leading the Bank of Canada’s governing council to factor trade policy uncertainty into its rate outlook.
Read more: Trade tensions with US drove Bank of Canada's January rate cut
On the supply side, BC active listings in January rose to 30,896 units, up 27% from the previous year. “Normalizing trends in new listings, coupled with stronger sales activity in the past few months, have led to an accumulation of inventory,” the association wrote in the report.
“Moving forward, it remains crucial for supply to keep pace with growing demand to keep markets balanced and prevent rampant price appreciation.”
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
