Naru Menon’s Blog

British Columbia home sales ↓ 14.6% yearly in April 2025 amid market cooling. Price declines in BC’s expensive markets signal a broader market correction underway

Home prices in Canada are projected to fall by 3.2% in 2025 due to economic uncertainty. TD Economics downgraded forecasts after weaker-than-expected sales and price declines in Q1 of 2025.

Canada’s national home price growth forecast for Q4 2025 was revised to 5%, down from the earlier 6%. Earlier predictions of price growth were altered due to global economic factors and upcoming elections.

Canada’s spring housing market is slowing due to economic uncertainty and U.S. tariff concerns affecting buyers and sellers. Home sales dropped 9.8% in Mid-Q1, with prices declining 3.3% and new listings falling 12.7%.

In February 2025, home sales in Canada fell to their lowest level since November 2023 amid trade war uncertainty. February home sales ↓ 10.4% yearly and ↓ 9.8% MoM on a seasonally adjusted basis.

Average asking rents in Canada dropped by 4.8% in Mid-Q1, reaching their lowest level since July 2023. Despite declines, rents remain 5.2% higher than in 2023 and 16.9% above pre-COVID levels.

New B.C. law limited short-term rentals to principal residences, impacting over 22K listings provincewide. Since implementation, Kelowna, Victoria, and Vancouver saw short-term listings fall by 31%, 24%, and 22% respectively.