High inventory, stagnant prices, and tariff jitters stall momentum in once-hot markets.
British Columbia’s housing market continues to feel the effects of global economic turbulence, as both home sales and prices fell in May.
Last month’s numbers reflect a broader five-month slump, with high-priced regions taking the biggest hit, according to the BC Real Estate Association (BCREA).
“We have the highest level of inventory of both newly completed homes and existing homes in about 10 years,” BCREA chief economist Brendon Ogmundson.
The average home price in the province dropped by 4.2% year over year to $959,058, down from $1,001,341 in May 2024, according to the report. Meanwhile, total sales activity declined 13.5% over the same period.
“Sellers just aren’t really budging,” Ogmundson added. “If you look at condo prices in Vancouver versus Toronto, they’re down 20% from peak in Toronto, they are down like 5% from peak in Vancouver.”
Realtor Steve Saretsky echoed concerns about buyer reluctance, describing the current environment as a “sort of feedback loop.”
“Everyone is marked with uncertainty,” he said. “Worried with the tariff stuff, worried about the prospects of the labour market, are they going to be able to hold down a job.”
He added that buyer hesitation has allowed inventory to accumulate, which in turn is putting downward pressure on prices. But some sellers remain anchored to outdated pricing expectations.
“Everybody always feels like their house is worth more than it is,” Saretsky said. “People are always mentally anchored to the last price that sold in the building or the neighbourhood.”
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Still, both Saretsky and Ogmundson acknowledged recent signs of a modest uptick in market activity, which Ogmundson attributed to a temporary easing of trade-related tension.
“There are some signs that perhaps the worst is behind us,” Ogmundson said. “The quieter it is on the tariff front, the more confidence buyers are going to have.”
He noted that before the onset of the US-Canada trade dispute, British Columbia had been bracing for a strong year. Ogmundson believes that if economic fears ease, some of that pent-up demand could start to make itself felt in the back half of 2025.
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