Tariffs stall market momentum in February

Tensions rise as trade war esclates

Ongoing Trump tariff threats stopped the Greater Vancouver real estate market in its tracks last month.

According to BCREA, 4,947 homes were sold across the province in February, a 9.7% decline from the same period last year. This slowdown was most pronounced in the regions two highest priced markets, as Fraser Valley and Metro Vancouver sales dropped by 27.2% and 11.3%, respectively for the month.

The average home price in B.C. also edged lower, decreasing 2.4% to $964,349 compared to $987,811 in February 2024. Metro Vancouver saw a more substantial decline, with the average home price falling 4.2% to $1,278,513. Meanwhile, prices in the Fraser Valley remained relatively stable at $1,017,385, as did Vancouver Island at $733,706.

Victoria, however, bucked the trend with a 3.3% increase, bringing the average home price to $951,247. The Interior also saw home prices rise, with the Okanagan market reporting a 9.7% increase, pushing the average home price to $766,403.

"After several months of building momentum, market activity was hampered in February by uncertainty surrounding tariffs," said BCREA Chief Economist Brendon Ogmundson in a statement. "Apprehension from prospective buyers will likely persist amid ongoing trade tensions, though lower interest rates on the horizon could provide some relief."

The Bank of Canada is widely expected to lower interest rates in response to economic uncertainty stemming from tariff concerns. According to Bloomberg, a combination of slowing economic growth and fluctuating U.S. trade policies is creating uncertainty for the Canadian economy and its largest trading partner. The central bank is anticipated to cut its overnight rate for the seventh consecutive meeting on March 12.