Canadian retail sales increased by 1.0 per cent to $70.4 billion in August compared to the previous month. Compared to the same time last year, retail sales were up by 4.9 per cent. Furthermore, core retail sales, which exclude gasoline and automobile items, were up 1.1 per cent month-over-month. In volume terms, adjusted for rising prices, retail sales increased by 1.0 per cent in August.

Retail sales in British Columbia were largely unchanged in August from the previous month and rose by 6.9 per cent compared to the same time last year. In the CMA of Vancouver, retail sales were down 0.8 per cent from the prior month and were 5.9 per cent above the level of August 2024.
           
Strong activity in August further demonstrates monthly volatility in Canadian retail sales, as six of nine subsectors rose following a weak previous month. Moreover, broader resilience in core retail sales signifies ongoing strength in household consumption despite weaker economic and labour market conditions. In spite of a slight uptick in headline and core inflation, financial markets are still expecting a second consecutive rate cut from the Bank of Canada next week.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian prices, as measured by the Consumer Price Index (CPI), rose 2.4 per cent on a year-over-year basis in September, up from a 1.9 per cent increase in August. On a seasonally adjusted monthly basis, the CPI was up 0.4 per cent in September. The CPI ex-gasoline increased by 2.6 per cent in September after rising 2.4 per cent in August. Additionally, shelter price growth remained at 2.6 per cent in September, while food price growth rose by 3.8 per cent year-over-year, 0.4 points higher than the previous month. In BC, consumer prices rose 1.9 per cent year-over-year in September, up from 1.8 per cent in August. The Bank of Canada's preferred measures of median and trimmed inflation, which strip out volatile components, were 3.2 per cent and 3.1 per cent year-over-year, respectively. 
 
September’s CPI report certainly complicates the Bank of Canada’s upcoming decision, with headline and core inflation ticking upward. While base-year effects explain some of the upward price pressures, acceleration in certain aggregates such as food prices will certainly concern the Bank.  Nonetheless, the Bank has emphasized that underlying inflation—while higher than preferred—remains stable at around 2.5 per cent, which, coupled with weak economic conditions, suggests a rate cut is on the horizon before year-close.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian housing starts increased 14 per cent from the previous month, totaling 279,234 units in September at a seasonally adjusted annual rate (SAAR). Starts were up 25 per cent from the same month last year. Single-detached housing starts increased by 1 per cent from last month to 55,408 units, while multi-family and other starts increased by 18 per cent to 223,825 units (SAAR). 

In British Columbia, starts fell by 20 per cent from last month to 37,305 units (SAAR) in all areas of the province. In areas of the province with 10,000 or more residents, single-detached starts decreased by 5 per cent to 3,965 units, while multi-family starts fell by 23 per cent to 30,197 units month-over-month. Starts in the province were 15 per cent below the levels from September 2024. Year-to-date starts are up 101 per cent in Abbotsford and 23 per cent in Victoria, but down 55 per cent in Nanaimo, 42 per cent in Kelowna, and 0.6 per cent in Vancouver.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Total MLS® residential sales dollar volume was $5.5 billion, up 4.8 per cent from the same time the previous year. BC MLS® unit sales were 21.4 per cent lower than the ten-year average for the month of September.

“Home sales in the province are gaining momentum following a slow first half of 2025,” said BCREA Chief Economist Brendon Ogmundson. “We anticipate sales will finish the year strong, aided by lower interest rates helping to unleash pent-up demand.”

Year-to-date, BC residential sales dollar volume is down 7.3 per cent to $51.8 billion, compared with the same period in 2024. Residential unit sales are down 4.2 per cent year-over-year at 54,594 units, while the average MLS® residential price is also down 3.3 per cent to $949,203.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Copyright British Columbia Real Estate Association. Reprinted with permission.

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver* is $1,132,500. This represents a 3.4 per cent decrease over October 2024 and a 0.8 per cent decrease compared to September 2025.

Specifically:

- The benchmark price for detached homes decreased 4.3% from Oct 2024 and decreased 0.9% from Sep 2025.

- The benchmark price for attached/townhouses decreased 3.8% from Oct 2024 and decreased 0.3% from Sep 2025.

- The benchmark price for apartment/condos decreased 5.1 % from Oct 2024 and decreased 1.4% from Sep 2025.

*Areas covered by the Real Estate Board of Greater Vancouver include: Burnaby, Coquitlam, Maple Ridge, New Westminster, North Vancouver, Pitt Meadows, Port Coquitlam, Port Moody, Richmond, South Delta, Squamish, Sunshine Coast, Vancouver, West Vancouver, and Whistler.