British Columbia’s housing market is showing significant signs of weakness in 2026, with new data pointing to declining sales, falling demand, and ongoing affordability challenges.
A recent outlook from TD Economics has identified B.C. as one of the weakest housing markets in the country, alongside Ontario.
Sales Activity Remains Well Below Normal
Market activity has slowed considerably.
According to the British Columbia Real Estate Association:
- February home sales were 33% below the 10-year average
- A total of 4,500 homes sold, down 9.7% year-over-year
- Total sales value reached $4.21 billion, down 12.3% compared to last year
This reflects a continued slowdown in buyer activity across the province.
Buyers Staying on the Sidelines
Economists say a mix of factors is holding buyers back.
Key issues include:
- Ongoing affordability challenges
- High borrowing costs compared to pre-pandemic levels
- Uncertainty about where prices are heading
Many buyers are choosing to wait, expecting prices may fall further before re-entering the market.
Pre-Construction Market Also Slowing
The slowdown is also showing up in new housing supply.
In February:
- Only 64 presale units were launched across Greater Vancouver and the Fraser Valley
- That’s just ~6% of the typical February average
This sharp drop suggests developers are pulling back amid weaker demand and market uncertainty.
Price Growth Expectations Downgraded
Rishi Sondhi noted that both Ontario and B.C. have seen the sharpest downgrades to expected sales and price growth.
While falling prices could eventually bring buyers back, demand has not yet rebounded as expected.
What This Signals
B.C.’s housing market is currently in a holding pattern.
Key takeaways:
- Sales activity remains well below normal levels
- Buyers are waiting for clearer signals before entering the market
- New construction is slowing
- Further price adjustments may be needed to restore demand
While a recovery is expected in 2027, conditions in 2026 are likely to remain subdued, especially in higher-priced markets like British Columbia.
References
TD Economics. (2026). Provincial Housing Market Outlook.
British Columbia Real Estate Association. (2026). Housing market data.
Canada Housing Market 
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