T
he British Columbia Real Estate Association (BCREA) is optimistic about the province's housing market, which ended 2024 on a strong note. According to BCREA's latest update, residential unit sales in December increased by 24.7% compared to the same month in 2023, with an average home price of nearly $1.1 million, up 5.6% from last year. Active listings have risen by almost 17%, providing a higher start-of-year inventory level since 2019.

    This increase in listings means buyers now have more options, but affordability remains a concern. University of British Columbia business professor Thomas Davidoff notes that while interest rates have decreased, prices never fully responded to the significant increases seen earlier. He advises potential buyers to focus on whether they can afford a home and if it's a place they're happy to live in.

    BCREA's chief economist Brendon Ogmundson describes the current market as "a pretty good situation" with sales, listings, and prices at relatively normal levels. However, he warns that looming threats from U.S. tariffs could disrupt this stability. The Canadian Real Estate Association forecasts an 8.6% growth in home sales for 2025, with B.C. and Ontario expected to see bigger rebounds.

    Despite the optimistic outlook, experts agree that external factors, particularly U.S. trade policies, will play a significant role in determining the market's future. A weaker economy could dampen housing demand, as people may be less interested in buying homes when facing job losses or income reductions.