The Future of Real Estate: What's Next for the Market?

The B.C. Real Estate Association (BCREA) reports that the province’s housing market ended 2024 on a strong note, setting a positive outlook for 2025. The latest data shows a significant 24.7% increase in residential unit sales in December compared to the same month in 2023, with 4,484 homes sold. At the same time, the average price of a home in B.C. rose to nearly $1.1 million, marking a 5.6% year-over-year increase. This uptick in both sales and prices indicates a market that’s gaining momentum as it moves into the new year.

Brendon Ogmundson, BCREA's chief economist, highlights that active listings have increased by almost 17%, which is the highest start-of-year inventory level in B.C. since 2019. This increase in listings means that buyers now have more choices available to them, helping to balance supply and demand. "There are enough listings in the market right now to absorb that extra demand without prices rising too much," Ogmundson told CBC News. This stable inventory, combined with a steady demand, sets the stage for a more balanced housing market in 2025. The Canadian Real Estate Association (CREA) also predicts a solid year ahead, with home sales in B.C. expected to see an 8.6% increase, largely driven by a recovery in the province’s housing inventory.

Despite the positive outlook, affordability remains a challenge for many in B.C. Even as interest rates have begun to decrease, they’re still coming off a high base, which means home prices have not fully adjusted to the earlier rate hikes. University of British Columbia business professor Thomas Davidoff points out that while falling interest rates are a welcome relief for buyers, the overall affordability crisis persists. As the market stabilizes and demand continues to grow, B.C.'s housing affordability will continue to be a key issue to watch in the year ahead.

Though the housing market is entering a period of relative stability, there are still external factors that could disrupt this equilibrium. Ogmundson has expressed concerns about potential tariffs or other trade-related issues from south of the border, which could impact B.C.'s housing market by raising construction costs and affecting supply chains. For now, however, the market remains in a relatively balanced state, providing some relief for buyers, though challenges remain in the form of high prices and the ongoing affordability crisis.

Details courtesy of - https://www.cbc.ca/news/canada/british-columbia/b-c-housing-market-forecast-2025-1.7435419