January 2025 has kicked off with a notable surge in British Columbia’s housing market. In just one month, 4,221 residential properties were sold—a 6.4% increase over January 2024—while active listings jumped 27% to nearly 31,000. This robust activity signals renewed seller confidence and a market in transition, even as slight price adjustments hint at a balancing act between supply and demand.

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A Closer Look at the Numbers

• 4,221 Sales: A 6.4% increase from January 2024, reflecting a steady rebound.
• Nearly 31,000 Active Listings: Up by 27%, indicating that more homeowners are choosing to list their properties.

Despite the surge in transactions and inventory, the average residential price on the MLS® dropped modestly by about 1%—from $959,191 in January 2024 to $949,560 in January 2025. This slight decline may help attract buyers amid the increased competition generated by more listings.

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Regional Dynamics

The province’s diverse real estate landscape is painting a more nuanced picture:

• Northern B.C.:
  Average sale prices climbed to $396,187—up 3.4%—demonstrating resilience in more rural areas.
• Chilliwack:
  This region saw prices drop by 3.7% to $694,700, suggesting a softer market where buyers may be exercising more caution.
• Greater Vancouver:
  With an average sale price of $1,208,415 (a 3.7% decrease), increased inventory appears to be moderating price growth in this high-demand zone.
• Okanagan:
  In one of BC’s hottest markets, average home prices reached $736,479—up 2.7%—underscoring sustained buyer interest.
• Kamloops:
  Here, the average price decreased by 3.8% to $536,082, aligning with broader trends of a slight overall price moderation.
• Kootenay:
  A robust 9% increase has lifted average prices to $505,729, reflecting strong localized demand.
• South Peace River:
  Perhaps the most dramatic change, this region experienced a 30.5% surge, with average prices leaping to $281,028.
• Vancouver Island:
  Buyers are increasingly confident here, with prices up 11.4% to $722,305.
• Victoria:
  The capital region’s average price increased by 5.3% to $986,258, signaling stable yet progressive market fundamentals.

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What’s Behind the Surge?

Industry experts, including BCREA’s chief economist Brendon Ogmundson, suggest that the simultaneous rise in sales and listings reflects a renewed seller confidence. Many homeowners are seizing the opportunity to list their properties as the market normalizes from previous seasonal lows. However, Ogmundson also warns that global economic uncertainties could still influence future mortgage rates and buyer sentiment.

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Supply and Demand Balance: The 27% jump in listings is a double-edged sword. On one hand, more options for buyers can ease competition in some regions, while on the other, a significant increase in supply may eventually temper rapid price increases—helping maintain a balanced market.

Localized Trends: Regional disparities are evident. For example, while Greater Vancouver experiences price moderation due to high inventory, South Peace River and Kootenay are witnessing substantial price gains driven by strong local demand. This variation emphasizes that market conditions can be highly specific to each region, requiring tailored strategies for both buyers and sellers.

Market Outlook and Implications

Looking ahead, the key will be to ensure that the increased supply continues to meet growing demand. As more homeowners list their properties, the market could remain competitive without triggering runaway price increases. For sellers, this means that competitive pricing, strategic home presentation, and timely decision-making are more important than ever. Meanwhile, buyers can benefit from a broader selection—but must act quickly in a market that is clearly showing signs of momentum.

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Economic Factors: Potential shifts in global markets and adjustments by the Bank of Canada are factors to monitor closely. While current trends are promising, even minor changes in interest rates or economic sentiment could influence future activity.

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Conclusion

January 2025 has set the stage for a dynamic year in BC real estate. With 4,221 homes sold and active listings soaring by 27%, the market reflects a blend of growing seller confidence and a healthy inventory that is keeping prices in check. Whether you’re looking to buy, sell, or invest, understanding these regional nuances and staying updated on market trends will be key to making informed decisions.

At Coldwell Banker Horizon Realty, we are dedicated to providing you with the latest insights and personalized guidance to help you navigate this evolving landscape with confidence.

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