Sales rose year-over-year as buyers responded to lower rates
British Columbia’s housing market showed renewed signs of life in September, with residential sales climbing 4.4% year-over-year, according to the latest data from the British Columbia Real Estate Association (BCREA).
The province recorded 5,782 residential unit sales through MLS Systems, a notable uptick after a sluggish start to 2025.
The average MLS residential price in BC edged up 0.4% to $948,296, compared to $944,298 a year earlier. Total dollar volume for September reached $5.5 billion, marking a 4.8% increase from the same month in 2024.
Still, sales activity remained well below historical norms—unit sales were 21.4% lower than the ten-year average for September.
Interest rates and pent-up demand shape the market
“Home sales in the province are gaining momentum following a slow first half of 2025,” said BCREA Chief Economist Brendon Ogmundson.
“We anticipate sales will finish the year strong, aided by lower interest rates helping to unleash pent-up demand.”
The Royal Bank of Canada (RBC) has projected that the Bank of Canada (BoC) will deliver another 25 basis point rate cut in October, following its September move to restart the easing cycle.
Meanwhile, Scotiabank’s Derek Holt provided a counterpoint, suggesting that a rate hold later this month was “more probable,” but not guaranteed.
However, the year-to-date picture remains subdued. BC’s residential sales dollar volume was down 7.3% to $51.8 billion compared to the same period last year. Unit sales dropped 4.2% to 54,594, and the average price slipped 3.3% to $949,203.
What it means for brokers and the BC market
For mortgage brokers in British Columbia, the September rebound signals a potential shift in client activity.
The modest price gains suggest that while demand is returning, affordability remains a challenge. Buyers are still price-sensitive, with many opting for shorter-term fixed-rate products in anticipation of further rate cuts.
With sales momentum building and interest rates trending lower, industry participants are watching closely to see if the fall rally will carry through to year-end.
The latest analysis from RBC’s Robert Hogue, assistant chief economist, points to a market still searching for solid footing after months of uncertainty.
“Purchasing urgency remained largely absent despite growing confidence among buyers as worst-case economic scenarios appeared more unlikely,” Hogue said.
"In Ontario, British Columbia, and parts of Alberta, expanded inventory levels are providing buyers with wider selection and stronger negotiating positions. The prospect of further price declines also sets up a wait-and-see approach."
For brokers and lenders, the coming months may bring increased competition for a still-limited pool of buyers. But as pent-up demand continues to surface, the BC housing market appears poised for a stronger finish to 2025.
The BC housing market data was released as some Canadian markets show signs of life, while others struggle.
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