U
ncertainty in the British Columbia real estate market has led to a significant decline in home sales, with prices following suit. According to data from the B.C. Real Estate Association, sales dropped 13.5% in May compared to the same period last year, while the average price of a home decreased by 4.2% to $959,058.

    The market has been affected by ongoing uncertainty in global markets, including tariffs and interest rates. This has led to buyer hesitation, causing inventory levels to rise and putting pressure on prices. Vancouver Realtor Steve Saretsky notes that people are holding off on big purchases due to concerns about the labour market and job security.

    Sellers are also contributing to the sluggish market by holding out for unrealistic prices. "Everybody always feels like their house is worth more than it is," Saretsky said, adding that people are mentally anchored to previous sale prices in their building or neighbourhood.

    However, both Saretsky and B.C. Real Estate Association Chief Economist Brendon Ogmundson have seen a slight increase in sales numbers in recent weeks. Ogmundson attributes this to the relative lack of noise on the U.S.-Canada trade front, suggesting that buyers are gaining confidence as tariffs become less of an issue.

    If economic fears continue to calm down, some of the pent-up demand could start to make itself felt in the back half of 2025, potentially leading to a busier market.