The B.C. housing market reported lower sales in December, marking the first monthly decline since August. Seasonally adjusted MLS home sales in the province reached 6,741 units, falling by 3.4 per cent from November but favourable in to a 5.8-per-cent decline countrywide. Despite the drop, momentum has been positive following a series of rate cuts. On a full-year basis, sales rose by a mild 2.1 per cent.
Monthly sales declined in all of B.C.’s regions except for Vancouver Island (excluding Victoria), where home sales increased by 1.4 per cent. In the Greater Vancouver region, home sales fell by 2.6 per cent, following a 7.4-per-cent uptick in the previous month. Sales also dipped sharply in South Okanagan by 14.6 per cent and in the Kootenay by 12.2 per cent. That said, home sales trends have been largely positive over the last three months across the province.
The average home prices in B.C. rose by 2.3 per cent to $1.02 million in December, the highest value since the highs recorded two years prior, but still five per cent below the all-time high recorded in February 2022. The month’s increase was driven by higher prices in Greater Vancouver (up 1.8 per cent), while prices also increased in the Kootenay (up 5.9 per cent), Okanagan Mainline (up 3.6 per cent), Vancouver Island excluding Victoria (up 1.9 per cent) and Victoria (up 1.3 per cent). Other regions saw declining home values. The average home price in 2024 was 1.1 per cent higher than the prior year at $982,104.
Average prices can mask compositional sales effects. The benchmark price index, which accounts for home attributes and product composition, increased in December by 0.8 per cent. In the Lower Mainland, they also rose by 0.6 per cent, while increasing by 1.4 per cent in the Okanagan and by 0.4 per cent on Vancouver Island.
Residential new listings in B.C. increased slightly by 0.7 per cent and market conditions are still balanced with the sales-to-new-listings ratio of 50.5 per cent. We expect growth in home sales in 2025 due to demand, and supported by more favourable financing conditions and policies. That said, affordability constraints are still prevalent, and limitations in housing supply will keep prices elevated. Increased economic risks may also hamper recovery.
Manufacturing sales see slight gain
Manufacturing sales in B.C. increased by a minor 0.6 per cent to $5.6 billion in November, following a 4.2-per-cent gain in October. Non-durable goods industries saw a 0.7-per-cent increase in monthly sales while durable goods sales grew by 0.6 per cent. Both categories have seen sales trend higher since Q3 2024. On a year-over-year basis, B.C. manufacturing sales were 1.2 per cent higher than last November, while still down by 1.5 per cent on a year-to-date basis.
There were mixed results among durable goods industries in December. Notably, wood product manufacturing has seen sustained growth in sales since August, rising by 7.2 per cent in November. Primary metal manufacturing also saw a 17.5-per-cent gain. Countering these increases were substantial declines in sales of machinery manufacturing (down 14.6 per cent) and transportation equipment manufacturing (down 19.7 per cent).
Bryan Yu is chief economist at Central 1
