B.C. home sales struggle in May as mortgage rates rise and labour market stays weak

New data from the B.C. Real Estate Association says sales were down two per cent last month with the average unit price also dropping.

Rising mortgage rates and a weaker labour market are weighing on home sales in British Columbia, especially in the Lower Mainland.

The B.C. Real Estate Association says home sales on the Multiple Listing Service System in May reached just short of 6,800 units, down two per cent from the same period in 2025.

Average residential prices also slid 1.4 per cent to just short of $946,000 from the May 2025 figure of about $959,000.

Association chief economist Brendon Ogmundson says the recent rise in mortgage rates “presents an unexpected headwind for the market this year and may further delay a recovery in activity.”

Residential sales dollar volume is down eight per cent to $25.1 billion, compared with the same period in 2025.

Unit sales also fell almost seven per cent so far this year compared with last year, reaching just short of 27,000 units.

This report by The Canadian Press was first published June 11, 2026.