The Bank of Canada’s recent policy shift has sparked renewed activity in British Columbia’s housing market. After a slow couple of years, 2024 ended on a high note, with strong momentum heading into 2025.
2024: A Year of Progress
BC recorded 74,000 home sales last year, a modest increase from 2023 but still below historical averages. The final quarter of 2024 delivered the year’s strongest performance, signaling renewed confidence.
“Markets across BC closed 2024 with significant momentum,” said BCREA Chief Economist Brendon Ogmundson. “While we’re optimistic about 2025, potential tariffs on BC exports to the U.S. pose uncertainty.” 🇺🇸💨
Lower mortgage rates played a key role in boosting buyer interest, while encouraging hesitant sellers to list their homes. Although new listings rebounded, inventory growth in 2024 was largely due to earlier sluggish sales. With active listings now at healthier levels, the market is well-positioned to handle rising demand without dramatic price increases.
2025: A Positive Outlook ☕️
As the Bank of Canada continues to lower rates, fixed mortgage rates are expected to stabilize around 4.6%, fueling sales activity. Forecasts for 2025 include 85,140 home sales, with prices expected to rise 4.5%, bringing the average home price to $1,025,900.
Challenges Ahead 🌐
Economic uncertainty remains, with potential U.S. tariffs on Canadian goods posing risks. However, BC’s slightly lower reliance on U.S. exports offers some insulation. For now, these risks have not been factored into the baseline forecast.
Balanced Market Ahead ⚖️
Heading into 2025, BC’s housing market appears stable, with adequate inventory and moderate price growth. While uncertainties linger, the momentum from late 2024 offers a solid foundation for buyers and sellers alike.
Every market brings with it opportunities in Real Estate & having a trusted Realtor in your corner is key. If you have any question about the market in the Cowichan Valley, please don’t hesitate to connect!
~Jess
