The Canadian housing market continues its subdued trajectory, with the Canadian Real Estate Association (CREA) reporting a 9.8% drop in national home sales in April 2025 compared to the same month last year. Just 44,300 properties changed hands, down from 49,135 in April 2024.

The slowdown reflects a market that’s returned to the “quiet” conditions seen since 2022. CREA Senior Economist Shaun Cathcart attributes the hesitation to economic uncertainty and trade-related concerns, similar to the impact high interest rates had in recent years.

“Given the increasing potential for a rough economic patch ahead, the risk going forward will be if an average number of people trying to sell their homes turns into a large number of people who have to sell their homes, and that’s something we have not seen in decades,” said Cathcart.

Supply is rising in B.C. and Ontario, but demand remains tepid. Across Canada, new listings fell 1% from March, though total active listings were up 14.3% year-over-year — still below the historical April average.

The national average home price in April was $679,866, down 3.9% from a year ago, and CREA’s Home Price Index showed a 1.2% decline from March.

Realtor Tim Hill added, “We’re seeing increased inventory with very stagnant demand… There’s been some hesitation out there and a lot of uncertainty.”

With CREA recently downgrading its 2025 forecast, TD’s Rishi Sondhi noted another “subdued month,” but pointed to a possible rebound later this year if confidence returns.

Source: https://stats.crea.ca/en-CA/

What’s Happening in the BC Real Estate Market?

Here’s a formatted version of the BCREA Q2 2025 Housing Forecast summary tailored for use in your email newsletter. It uses a clean, skimmable structure suitable for real estate clients or subscribers:

🏡 BCREA Q2 2025 Housing Forecast Update

What’s Happening in the BC Real Estate Market?

🔍 Market at a Glance

The British Columbia Real Estate Association (BCREA) has released its 2025 Second Quarter Forecast, and it’s clear the market is taking a breather.

Why? Global economic uncertainty—especially new U.S. tariffs on Canadian exports—is causing buyers to pause, even as interest rates fall.

📉 Key Highlights

• Home sales across BC are expected to dip 1.1% in 2025, totaling about 73,650 units.

• A rebound is forecasted for 2026, with sales projected to rise 8.8%.

• Interest rates are down (Bank of Canada cut its rate from 5% to 2.75%), but inflation and trade tensions may limit further cuts.

• Inventory is up, which may soften prices. Expect flat-to-slightly-lower prices in 2025, with moderate growth in 2026.

📍 Regional Snapshots

Vancouver Island-Coast:

• Victoria: Sales up 1.8%, average price up 1.7%

• Rest of Island: Sales down 3.8%, prices mostly flat (+0.4%)

Lower Mainland:

• Greater Vancouver: Sales down 1.6%, average prices expected to drop 2.1%

• Fraser Valley: Sales down 2.4%, modest price dip (-0.6%)

• Chilliwack: Slight growth in both sales (+1.7%) and price (+0.5%)

Thompson-Okanagan:

• Okanagan: Sales down 3.7%, price growth modest (+1.4%)

• Kamloops: Sales up 2%, prices nearly flat (+0.5%)

Northern BC & Kootenay:

• Northern BC: Sales up 2.1%, prices up 0.8%

• Kootenay Region: Sales up 5.4%, prices up 2.7%

📈 What to Expect Moving Forward

Buyers are waiting for more certainty in the economy before jumping back in. When they do, BCREA expects a sharp rise in sales. Until then, it’s a window of opportunity for well-priced listings and motivated buyers.

Would you like this in HTML format for easy copy-pasting into your newsletter platform (e.g., Mailchimp, Constant Contact, or a WordPress plugin)?

https://www.bcrea.bc.ca/wp-content/uploads/2025-04-housing-forecast.pdf

If you’re interested in real estate investing in Canada, there’s one podcast I highly recommend checking out: The Canadian Real Estate Investor, hosted by Brandon and Simon.

These two bring a fresh, insightful, and often entertaining perspective to the world of Canadian real estate. Whether you’re new to investing or have years of experience, their episodes cover a wide range of topics that are practical, timely, and genuinely useful. From market trends and economic shifts to case studies, financing strategies, and interviews with industry experts, Brandon and Simon break it all down in a way that’s both easy to understand and deeply informative.

What sets them apart is their clear passion for helping listeners grow their knowledge—and their investments—while staying grounded in the realities of the Canadian market. They don’t just share theory; they dive into real deals, numbers, and lessons learned.

You can listen to the podcast on all major streaming platforms or head directly to their site: The Canadian Real Estate Investor Podcast.

If you’re serious about real estate or just curious to learn more, give it a listen.

The Canadian Real Estate Association (CREA) has revised its 2025 housing market forecast, citing slower-than-expected activity. Home sales in March dropped 9.3% year-over-year and 4.8% month-over-month, as potential buyers held back due to economic uncertainty and tariff concerns.

CREA now predicts 482,673 homes will sell in 2025—essentially flat from 2024 and a sharp downgrade from the 8.6% increase projected in January. The national average home price is also expected to dip slightly by 0.3% to $687,898, about $30,000 less than previous estimates.

CREA’s senior economist Shaun Cathcart described the market shift bluntly: “We’ve gone from a slam dunk rebound year to treading water at best.”

In March, the average national sale price stood at $678,331—down 3.7% from the same time last year.

Source: The Canadian Press, April 15, 2025

Economic Implications of U.S. Tariffs

The report examines various tariff scenarios, noting that a 25% tariff on Canadian goods could push both the Canadian and BC economies into recession. This economic downturn would likely lead to decreased consumer confidence and reduced housing demand, affecting home sales and prices. 

Impact on Mortgage Rates

Economic slowdowns typically prompt central banks to lower interest rates to stimulate growth. The BCREA anticipates that in response to a recession induced by high U.S. tariffs, the Bank of Canada might reduce its overnight rate to between 2.5% and 2.75%. This reduction could lead to lower mortgage rates, potentially offsetting some negative impacts on housing affordability. 

Construction Costs and Housing Supply

The imposition of tariffs, particularly on materials like lumber and steel, would increase construction costs. This escalation could slow down new housing projects, exacerbating existing supply shortages and putting upward pressure on home prices. 

Broader Economic Consequences

Beyond the housing market, tariffs can lead to higher consumer prices and strained international relations, further dampening economic growth. These factors collectively contribute to a challenging environment for both homebuyers and sellers in BC.

Conclusion

The BCREA’s analysis highlights the potential ripple effects of U.S. trade policies on BC’s housing market. Stakeholders should remain vigilant and consider these scenarios in their planning and decision-making processes.

https://www.bcrea.bc.ca/economics/choose-your-own-misadventure-how-us-tariffs-could-impact-bc-housing/

Why Overpricing Your Home Could Cost You More in the Long Run

When it comes to selling your home on Vancouver Island, pricing it right from the start is crucial. Many sellers believe that setting a higher price leaves room for negotiation or that their property is worth more due to personal attachment. However, overpricing your home can have unintended consequences that may ultimately cost you more—both in time and money.

1. Less Buyer Interest
The first few weeks of listing are the most critical. This is when your home gets the most attention from serious buyers. If your price is too high, it may not even show up in searches filtered by budget. Buyers often skip overpriced homes, assuming the seller isn’t serious or flexible. This leads to fewer showings and less competition, reducing your chances of receiving strong offers.

2. Longer Time on Market
An overpriced home tends to sit on the market longer. The longer a property remains unsold, the more buyers start to wonder what's wrong with it. Even if you eventually lower the price, the listing has already gone stale, and you’ve lost the initial momentum that could have led to a quicker sale.

3. Price Reductions Signal Desperation
Frequent price drops can send the wrong message to potential buyers. They might assume you're desperate to sell or that there's something fundamentally wrong with the property. This perception can lead to lowball offers, forcing you to accept less than if you had priced it correctly from the beginning.

4. Appraisal Issues
Even if you find a buyer willing to pay your inflated price, their lender will require an appraisal. If the home doesn’t appraise for the agreed price, the deal can fall through unless the buyer can cover the difference—which is rare. This puts you back at square one, often having to relist at a lower price.

5. Carrying Costs Add Up
While your home sits unsold, you're still responsible for mortgage payments, property taxes, insurance, utilities, and maintenance. These carrying costs can quickly add up, eating into your profits. In contrast, a well-priced home sells faster, minimizing these ongoing expenses.

6. Missed Opportunities
Buyers today are well-informed, with easy access to market data. If your home is overpriced, savvy buyers will opt for better-valued properties, even if yours has unique features. You could miss out on motivated buyers who might have made strong offers if your home had been competitively priced.

The Bottom Line
Pricing your home correctly from the start is your best strategy for a successful sale. It attracts serious buyers, reduces the time on the market, and often results in better offers. As a local real estate expert for the Parksville and Qualicum Beach area, I can provide a comprehensive market analysis to help you set a competitive price that reflects your home’s true value.

Ready to list your home the right way? Contact me today for a personalized consultation.

Selling a home can feel overwhelming, but with the right strategies, you can achieve a quick and profitable sale. As a trusted real estate professional in Qualicum Beach and Parksville, I’ve helped countless homeowners navigate the selling process. Here are my top five tips to help you sell your home successfully in these vibrant communities.

1. Price It Right from the Start

Overpricing can deter buyers, while underpricing leaves money on the table. Work with a professional to analyze market trends in Qualicum Beach and Parksville and set a competitive price.

2. Stage Your Home to Impress

First impressions matter. A clean, well-staged home attracts more buyers. Highlight your home’s best features and create a welcoming atmosphere tailored to the preferences of local buyers.

3. Showcase Local Charm

Buyers are drawn to Qualicum Beach and Parksville for their natural beauty and small-town charm. Emphasize your home’s proximity to beaches, parks, and community amenities.

4. Leverage Professional Marketing

Online listings with high-quality photos and detailed descriptions can make your property stand out. Social media and local advertising are also key to reaching potential buyers in the area.

5. Choose the Right Realtor

Partnering with an experienced realtor who offers great value and personalized service can make all the difference. Look for someone who knows the Qualicum Beach and Parksville markets inside and out.

Conclusion:

Selling your home in Qualicum Beach and Parksville doesn’t have to be stressful. With these tips, you’ll be on your way to a successful sale. Ready to get started? Contact me today for a free consultation and personalized selling strategy.