What Buyers and Sellers Should Expect
Rising interest rates, slower sales activity, and changing economic conditions have created uncertainty for many buyers and sellers across British Columbia. The outlook for 2026 points to a market that is more balanced and predictable than what we’ve experienced recently.
In the video above, I walk through the 2026 housing forecast for British Columbia and Canada, and explain what these trends could mean for people buying or selling property here in Mission, BC.
BC Real Estate Outlook for 2026
According to CMHC, home sales across Canada are expected to improve modestly in 2026.
Nationally, sales are projected to rise from about 470,000 homes in 2025 to roughly 489,000 homes in 2026, an increase of approximately 4%. British Columbia is expected to lead part of that recovery after experiencing some of the lowest sales activity seen in decades.
While activity may improve, sales are still expected to remain below long-term historical averages, meaning the market is likely to remain more measured than during the pandemic years.
Modest Price Growth Expected
The 2026 housing forecast also suggests that home prices may increase gradually rather than dramatically.
The national average home price is projected to rise from about $680,000 to roughly $698,000, representing an increase of around 2.6%.
In other words, the expectation is for steady price movement rather than sharp increases or major declines.
Interest Rates and the Housing Market
Interest rates have been one of the biggest drivers of the housing market over the past several years.
The Bank of Canada policy rate peaked at 5.50% in July 2024 before beginning a series of cuts later that year. By late 2025 the rate had dropped to 2.25%, where it has remained relatively stable.
Many economists now expect interest rates to stay close to current levels through much of 2026, with only minor adjustments possible depending on economic conditions.
For buyers who have been waiting for rates to drop significantly, it’s important to recognize that most of the major rate reductions have already taken place.
New Housing Construction Is Slowing
Another important trend highlighted in the CMHC forecast is a slowdown in new housing construction.
Housing starts across Canada are expected to fall from approximately 259,000 units in 2025 to around 247,000 units in 2026. In British Columbia, new construction is expected to slow even further due to high development costs and weaker demand for pre-sales.
This slowdown may reduce competition from new developments and could benefit existing home sellers.
What This Means for Buyers and Sellers
The 2026 housing forecast points toward a market that is more balanced than the extreme conditions seen in recent years.
Buyers have more choices and more time to make decisions. At the same time, well-priced homes in good condition are still selling.
For sellers, accurate pricing and proper presentation are becoming increasingly important. Homes that are priced too high often remain on the market longer and may ultimately sell for less than if they had been positioned correctly from the beginning.
The Local Real Estate Market in Mission, BC
Although national and provincial forecasts provide useful context, real estate markets ultimately operate at a local level.
In Mission, BC, detached homes have remained relatively stable compared with some other property types. Townhomes and condominiums have experienced higher inventory levels, which has created more competition among sellers.
Understanding these local trends is essential when deciding whether to buy or sell real estate in the Fraser Valley.
Thinking About Buying or Selling in Mission?
If you’re considering buying or selling property in Mission, BC, it helps to understand both the broader housing market and the local conditions that influence pricing and demand.
If you’d like a clearer picture of the current Mission real estate market, feel free to reach out anytime. I’m always happy to provide straightforward advice and help you plan your next move.
