BC Housing Market Forecast: Home Sales Expected to Rebound in 2027 Despite Economic Challenges

British Columbia’s housing market is expected to experience a modest recovery in 2027, with home sales forecast to increase as economic pressures gradually ease. However, elevated housing inventory, economic uncertainty and affordability challenges are likely to continue weighing on the market in the near term.

According to the British Columbia Real Estate Association’s (BCREA) 2026 Fourth Quarter Housing Forecast, Multiple Listing Service® (MLS®) residential sales across the province are projected to decline by 4.5% in 2026 to 67,025 units. Looking ahead, sales are expected to increase by 7.2% in 2027, reaching approximately 71,840 units.

Economic Uncertainty Continues to Weigh on Housing Demand

Despite expectations for an eventual recovery, British Columbia’s housing market continues to face economic headwinds that are contributing to buyer hesitation.

“British Columbia’s housing market continues to face a challenging economic environment, as mounting headwinds fuel hesitancy among prospective buyers,” said BCREA Chief Economist Brendon Ogmundson.

He added that a modest recovery in home sales is anticipated in 2027 as the effects of new United States tariffs begin to fade and fixed mortgage rates decline.

These developments could help restore buyer confidence and encourage more prospective purchasers to enter the market, although the pace of recovery will depend on broader economic conditions.

Elevated Housing Inventory Puts Pressure on Home Prices

While home sales are expected to recover next year, elevated housing supply continues to present challenges for the provincial housing market.

Active listings are approaching their highest levels since 2015, while additional pressure from elevated new-home inventory is contributing to downward pressure on prices.

BCREA forecasts that the average residential price in British Columbia will decline by 1.2% in 2026, falling to approximately $941,200 from $952,719 in 2025.

The anticipated decrease largely reflects weaker conditions in higher-priced markets, particularly across the Lower Mainland, where disproportionate price declines are weighing on the province-wide average.

What to Expect in 2027

The outlook for 2027 points toward improving housing activity, supported by potentially lower fixed mortgage rates and easing trade-related economic pressures. However, the market is unlikely to experience an immediate or uniform recovery across all regions of British Columbia.

For prospective buyers, elevated inventory may provide more choice and greater negotiating opportunities. Meanwhile, sellers may need to adjust their pricing expectations to reflect current market conditions and increased competition.

Overall, BCREA's latest forecast suggests that while 2026 remains a challenging year for British Columbia's housing market, conditions could gradually improve in 2027 as economic uncertainty subsides and buyer confidence strengthens.

Source: British Columbia Real Estate Association (BCREA), 2026 Fourth Quarter Housing Forecast, November 10, 2026.