A combination of lower borrowing costs and stabilizing inventory is revitalizing British Columbia’s housing market, signaling a shift toward balanced conditions and renewed buyer confidence.
Balanced Market Conditions Emerge After Slowdown
Following two years of subdued activity, the BC Real Estate Association (BCREA) reports the province’s housing market has transitioned to its most balanced state in nearly ten years. Inventory levels, which hit historic lows during the pandemic, have rebounded to healthier numbers, providing buyers and sellers with more predictable options.
According to BCREA’s 2025 First Quarter Housing Forecast, MLS residential sales are projected to climb 14.3% year-over-year to 85,140 units in 2025, with further growth anticipated in 2026 (88,000 units). While 2024 saw a modest uptick to 74,000 sales—surpassing 2023’s totals—activity remains below the 10-year average, leaving room for expansion.
“The slowdown allowed inventory to recover from record lows, creating a stable foundation for sustainable growth,” said Brendon Ogmundson, BCREA Chief Economist.
Interest Rate Cuts Fuel Buyer and Seller Confidence
The Bank of Canada’s decision to lower its overnight rate in late 2023 marked a turning point. Fixed mortgage rates followed suit, declining steadily and reigniting demand. Sellers who delayed listing during the 2023 rate hikes are now entering the market, easing inventory constraints.
BCREA anticipates additional rate cuts through 2025, potentially stabilizing the overnight rate near 2.5% by year-end. Five-year fixed mortgage rates are expected to settle around 4.5%, improving affordability for buyers.
Steady Price Growth Ahead for BC Homes
While some regions experienced price corrections during the 2023 rate hikes, Vancouver defied trends, reaching a record average price in mid-2024. Moving forward, Ogmundson predicts provincial prices will align with inflation, projecting a 4.5% increase in 2025 to an average of $1,025,900. Vancouver’s market is forecast to rise 2%, reflecting tempered but consistent growth.
Competitive Conditions Return to Key Regions
Real estate professionals report surging activity, particularly in the Tri-Cities and Metro Vancouver. Multiple-offer scenarios have reemerged, signaling heightened competition as buyers act on lower rates.
“After a prolonged quiet period, we’re seeing bidding wars again,” noted Jordan Macnab, a local Realtor. “Demand is outpacing new listings, creating urgency among buyers.”
Looking Ahead
The BC housing market’s rebound reflects improved affordability and broader economic confidence. While prices are rising gradually, balanced inventory prevents the volatility seen in previous cycles.
For personalized guidance in this evolving landscape, connect with Coldwell Banker Horizon Realty’s experienced agents. We provide data-driven insights and local expertise to help you buy, sell, or invest with confidence.
Sources: BC Real Estate Association (BCREA)
The content of this article is for informational purposes only and should not be considered as financial, legal, or professional advice. Coldwell Banker Horizon Realty makes no representations as to the accuracy, completeness, or suitability of the information provided. Readers are encouraged to consult with qualified professionals regarding their specific real estate, financial, and legal circumstances. The views expressed in this article may not necessarily reflect the views of Coldwell Banker Horizon Realty or its agents. Real estate market conditions and government policies may change, and readers should verify the latest updates with appropriate professionals.
