BC August home sales fell, but tariffs and rising rates cast doubt over the recovery
British Columbia's housing market is recovering, just not fast enough. Despite months of incremental gains since a sluggish start to the year, the province's August sales figures show a market still struggling to close the gap with its own historical norms, with fresh headwinds now threatening to slow what modest momentum exists.
British Columbia recorded 5,653 residential property sales through the Multiple Listing Service in August, the British Columbia Real Estate Association (BCREA) reported. That's a 4.7% decline from a year earlier and 25.4% below the 10-year August average.
Total dollar volume reached $5.2 billion in August, down 4.8% from the same month in 2025.
The province-wide average listing price slipped approximately 1% year-over-year to $924,826.
Brendon Ogmundson, chief economist at the BCREA, noted that monthly activity has climbed from January, when transactions dipped below 5,200, but acknowledged that the gap with historical norms remains pronounced.
"Provincial home sales remain well below long-term averages but have been steadily improving throughout the year," Ogmundson said.
"We expect a gradual recovery in sales to continue, though new tariffs and a recent spike in long-term interest rates add a layer of risk to that scenario."
Regional divergence sharpens across the province
The August data revealed considerable variation across BC's regional markets. The Okanagan posted the steepest year-over-year decline at 22%, while South Peace River in the province's northeast surged nearly 35%, the sharpest regional gain for the month.
In Greater Vancouver, 1,869 units sold in August, down 3.6% from the same month a year earlier, with the average listing price at $1,213,418, down 1.3% year-over-year.
The Fraser Valley saw a sharper price retreat, with the average falling 4.7% to $949,354. Chilliwack offered a rare bright spot, with the average price edging up 1.5% to $746,289.
The pattern aligns with the projection in BCREA's second-quarter housing forecast for BC, which revised full-year provincial sales down to 68,700 units. That's a significant downgrade from the 80,600-unit recovery scenario anticipated when the year began.
Earlier in the year, BC unit sales slipped again in April as trade uncertainty and higher rates suppressed buyer demand, signalling that the full-year trajectory would remain constrained.
Tariffs and bond yields cloud the path forward
Vancouver-based mortgage broker Kyle Green told Canadian Mortgage Professional in May that the market was counting on a stronger second half, particularly in the detached segment.
"A lot of economists were predicting that the second half of the year would be a little bit better, in particular with the detached market," Green said.
"A lot of new construction for detached has fallen off a cliff as of about 12 months ago. So there's less new product getting completed now, and eventually the surplus supply of detached will get eaten up and then eventually should balance out the market."
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