B.C.'s housing market named one of the weakest in Canada as issues persist
Vancouver homeowners looking to sell in 2026 may be in for a rough time, as a recent report has named B.C. as one of the weakest housing markets in Canada.
According to a Provincial Housing Market Outlook released by TD Economics, “persistent housing headwinds” have led to steep downgrades in several parts of the country.
B.C. and Ontario were identified as housing markets facing ongoing issues that have kept potential buyers away.
Ian Ius/Daily Hive
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“Ontario and B.C. have seen the sharpest downgrades to sales and price growth following significant first-quarter declines,” wrote Rishi Sondhi, TD Economist, in his report.
“In addition to broader macro headwinds, strained affordability continues to weigh on demand, and falling prices are likely keeping potential buyers sidelined as they wait for a clearer bottom. Pent-up demand has yet to re-emerge as quickly as previously expected, suggesting further price declines may be needed to unlock it.”
TD Economics
B.C. home sales remained dismal to start the year, with February sales 33 per cent lower than the 10-year average.
The British Columbia Real Estate Association (BCREA) recorded 4,500 residential unit sales across the province, down 9.7 per cent from February 2025.
In dollar amounts, that equates to $4.21 billion worth of sales, which is 12.3 per cent lower than the same time last year.
For the month of February 2026, only 64 new presale homes across three projects were launched across Greater Vancouver and the Fraser Valley.
That is a big drop compared to a typical February, which usually sees more than 1,100 units come to market. February 2026’s presales launches represented just about six per cent of the historical average.
Construction cranes for residential towers in North Vancouver. (Adam Melnyk/Shutterstock)
“Looking ahead to 2027, improved economic and labour market conditions, waning uncertainty, and affordability gains from prior price declines in Ontario and B.C. should support a rebound in Canadian home sales from their 2026 lows,” added Sondhi in the report.
“This will likely push national average price growth back into positive territory, though gains are expected to remain modest amid subdued conditions in Ontario and B.C. and moderating growth elsewhere.”
It may take time for Vancouver homebuyers to get back into the market, though, as a recent report by Zoocasa showed that some may need 83 years to save for a down payment.
The full TD Economics Provincial Housing Market Outlook can be read online.
With files from Hanna Hett and Kenneth Chan