BC Home Sales Continue to Struggle
B.C. home sales “continue to struggle,” with February volumes down across all regions and the B.C. Real Estate Association predicting further weakness. One economist warns that new home construction could fall further, amplifying longer-term supply constraints.
The BCREA's February stats package showed unit sales down across all board areas, with the Fraser Valley seeing the biggest drop at -34.7% year-over-year. Dollar volume for the province was down 27.3% compared to February 2025, hitting $4.4 billion. High borrowing costs continue to be a primary factor, exacerbated by persistent inflation that's keeping the Bank of Canada from cutting its policy rate. The association anticipates a modest recovery in the second half of 2026, but only if mortgage rates begin to decline. The slowdown is hitting new construction, with housing starts in B.C. falling nearly 10% in February. Economists are concerned that reduced building activity will worsen the province's long-term housing supply challenges, especially as population growth remains strong. This could create renewed price pressures down the road, even if sales remain weak in the short term.
