(June 2025) –July 15, 2025

Canadian prices, as measured by the Consumer Price Index (CPI), rose 1.9 per cent on a year-over-year basis in June, up from a 1.7 per cent increase in May. Month-over-month, on a seasonally adjusted basis, the CPI was up 0.2 per cent in June. Upward pressure on headline inflation was largely driven by a slower fall in gasoline prices year-over-year compared to May, along with higher price growth for durable goods (2.7 per cent). Additionally, shelter price growth continues to cool, with prices growing by 2.9 per cent in June, slightly down from 3.0 per cent in May. Furthermore, the CPI ex-energy rose by 2.7 per cent in June. Food purchased in grocery stores rose at a slower pace of 2.8 per cent year-over-year compared to 3.3 per cent the previous month. In BC, consumer prices rose 2.1 per cent year-over-year in June, down from 2.3 per cent in May. The Bank of Canada's preferred measures of median and trimmed inflation, which strip out volatile components, are at 3.1 per cent and 3.0 per cent year-over-year, respectively.

June's CPI report illustrates ongoing upward pressure on prices despite monthly fluctuations in headline inflation. The Bank of Canada's core measures of inflation remain at the upper end—and even outside—of their target range, likely due to the price impacts of tariffs on major Canadian industries. Moreover, Canada remains vulnerable to further price acceleration with renewed tariff threats from the United States. Taken together, this report favours a rate hold from the Bank during its July meeting, as they have repeatedly signalled hesitancy to enact policy that may accelerate inflation beyond neutral levels amidst immense uncertainty concerning trade policy. 

Disclaimer: Economics Now is produced by the British Columbia Real Estate Association. Copyright British Columbia Real Estate Association. Reprinted with permission. BCREA makes no guarantees as to the accuracy or completeness of this information.

Most Regions in BC See Stronger Sales in June

Vancouver, BC – July 14, 2025. The British Columbia Real Estate Association (BCREA) reports that 7,162 residential unit sales were recorded in Multiple Listing Service® (MLS®) Systems in June 2025, up 1.3 per cent from June 2024. The average MLS® residential price in BC in June 2025 was down 4.2 per cent at $954,065 compared to $995,614 in June 2024.

The total sales dollar volume was $6.8 billion, a 3 per cent decrease from the same time the previous year. BC MLS® unit sales were 23 per cent lower than the ten-year June average.
 
“Many regional housing markets across BC remained resilient through the second quarter, with only the Lower Mainland falling below sales activity from the previous year,” said BCREA Chief Economist Brendon Ogmundson. “Until broader uncertainties are resolved, we expect overall housing activity in the most expensive areas of the province to continue lagging behind other regions that have steadily recovered since the onset of tariff uncertainty.”
 
Year-to-date, BC residential sales dollar volume is down 11 per cent to $34.2 billion, compared with the same period in 2024. Residential unit sales are down 7.1 per cent year-over-year at 35,847 units, while the average MLS® residential price is also down 4.2 per cent to $954,241.

Copyright© British Columbia Real Estate Association

Tuesday, July 8, 2025

After a turbulent first six months, home sales are showing signs of a recovery. With a sizeable inventory, and mortgage rates down around two percent since last summer, buyers are enjoying some of the most favourable (market) conditions seen in years.

Here's a summary of the June 2025 housing market statistics.

After a turbulent first half of the year, home sales registered on the MLS® across Metro Vancouver* are showing emerging signs of a recovery, down ten per cent year-over-year – halving the decline seen last month.

For more and to read the full article, click here.

By Trevor Hargreaves, BCREA Senior VP, Government Relations,
Marketing & Communications

A GST exemption for first-time homebuyers (FTHBs) was a popular policy point ahead of the federal election, and it’s now been actioned by Prime Minister Mark Carney’s government. Starting in 2025-2026, FTHBs are entitled to GST relief on new homes up to $1.5 million. This is intended to “lower the upfront cost of buying” for FTHBs while simultaneously reducing the tax burden of the purchase. This savings of up to $50,000 is quite significant.

Some specifics:

A first-time homebuyer may be eligible for the FTHB GST Rebate if: 

• they buy a new home from a builder; 

• they build, or hire someone else to build, a home on land they own or lease; or 

• they buy shares of a co-operative housing corporation. 

The FTHB GST Rebate will apply to the same types of housing and apply similar eligibility criteria and conditions as the existing GST / HST New Housing Rebate, with certain modifications to ensure that the rebate is targeted at FTHBs. 

To be considered a “first-time homebuyer” for the purposes of the FTHB GST Rebate, an individual would generally need to meet the following conditions: 

• be at least 18 years of age; 

• be either a Canadian citizen or a permanent resident of Canada; and 

• not have lived in a home, whether in or outside Canada, that they owned or that their spouse or common-law partner owned in the calendar year or in the four preceding calendar years. 

Together with the existing GST / HST New Housing Rebate (where that rebate is applicable), the FTHB GST Rebate would provide a rebate of 100 per cent of the GST on new homes valued up to $1 million. 

The FTHB GST Rebate would be phased out in a linear manner for new homes valued between $1 million and $1.5 million. For example, under the linear phase-out, a home valued at $1.25 million would be eligible for a 50 per cent GST rebate (a rebate of up to $25,000). 

No FTHB GST Rebate will be available for new homes valued at or above $1.5 million. 

Read more on the qualifying specifics here.