Canadian retail sales decreased by 0.4 per cent to $70 billion in December compared to the previous month. Retail sales were marginally lower compared to the same last year. Furthermore, core retail sales, which exclude gasoline and automobile items, decreased by 0.3 per cent in December. In volume terms, adjusted for rising prices, retail sales were unchanged in December. Overall, retail sales increased by 4.0 per cent in 2025 and rose by 2.3 per cent in volume terms.

Retail sales in British Columbia were down 0.5 per cent in December month-over-month and rose by 2.6 per cent compared to the same time last year. In the CMA of Vancouver, retail sales were up 0.6 per cent from the prior month and were 3.6 per cent above the level of December 2024. 

A weak December print rounds out a year of retail sales characterized by volatility and resilience. While rising 4.0 per cent year-over-year, retail activity in December was just 0.5 per cent above the level in January 2025 amidst monthly oscillations. Nonetheless, Canadian retail sales demonstrated resistance to weak economic conditions and broader uncertainty throughout the year. We expect the Bank of Canada to hold once again in March as they have signaled for a quiet year pertaining to monetary policy changes.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian prices, as measured by the Consumer Price Index (CPI), rose 2.3 per cent on a year-over-year basis in January, following the 2.4 per cent increase in December. On a seasonally adjusted monthly basis, the CPI was up 0.1 per cent in January, equivalent to a 0.7 per cent increase on an annualized basis. The CPI ex-gasoline increased by 3.0 per cent in January, matching the previous month. Additionally, food prices increased by 7.3 per cent year-over-year, driven by base-year effects from last year’s GST holiday break on restaurant meals. In BC, consumer prices rose 2.0 per cent year-over-year in January, up 0.3 points from December. The Bank of Canada's preferred measures of median and trimmed inflation, which strip out volatile components, fell to 2.5 and 2.4 per cent year-over-year, respectively. 
 
Sharper falls in gasoline prices partially counteracted upward pressure on many sub-aggregates that were affected by last year’s GST holiday, leaving headline inflation in a fairly similar place compared to December. However, 3-month annualized core inflation cooled further to about 1.2 per cent, levels not seen since the early pandemic era. Looking ahead, we expect the Bank of Canada to remain on hold in 2026, but next week’s GDP release should provide an early indication of the direction of the Canadian economy this year.

Copyright British Columbia Real Estate Association. Reprinted with permission.

The British Columbia Real Estate Association (BCREA) reports that 3,314 residential unit sales were recorded in Multiple Listing Service® (MLS®) Systems in January 2026, down 22.9 per cent from January 2025. The average MLS® residential price in BC in January 2026 was down 1.9 per cent at $924,239 compared to $942,384 in January 2025.

Total MLS® residential sales dollar volume was $3.06 billion, down 24.4 per cent from the same time the previous year. BC MLS® unit sales were 30.97 per cent lower than the ten-year average for the month of January.

“British Columbia’s housing market kicked off 2026 with its second weakest January since 2016, with sales in almost every region falling short of historical averages,” said BCREA Chief Economist Brendon Ogmundson. “Despite a slow start, we expect stable rates and improved affordability conditions to release pent-up demand with sales picking up over the course of 2026.”

Active listings in January 2026 climbed to 32,626 units, a 5.6 per cent increase from the same month last year. Weak sales activity over the past several quarters have led to an accumulation of inventory, which should accommodate demand pressures in the short term. However, dampening sentiments concerning new home construction in BC leave the housing market vulnerable to long-term demand growth, a pattern which will be monitored over the next few years.

Copyright British Columbia Real Estate Association. Reprinted with permission.

Canadian employment ticked down 0.1 per cent from the previous month, with the economy losing 25,000 jobs to 21.121 million in January. The employment rate also edged down 0.1 per cent to 60.8 per cent, while the unemployment rate fell by 0.3 points to 6.5 per cent. Average hourly wages rose 3.3 per cent year-over-year to $37.17 in January.
           
Employment in B.C. increased by 0.1 per cent to about 2.948 million, with the provincial economy gaining 3,500 jobs in January. Employment in Metro Vancouver increased by 0.3 per cent to 1.691 million. The unemployment rate in B.C. fell 0.2 points to 6.1 per cent in January. Meanwhile, Vancouver's unemployment rate fell by 0.3 points to 6.2 per cent in January. 

The Canadian labour market opened 2026 with a slight downturn in employment, while seeing the unemployment rate reach its lowest levels since September 2024. Much of this decline is attributable to fewer people (-94,000) looking for work, yet only 0.3 per cent of the population not participating in the labour force are disgruntled job seekers (according to Stats Canada). Nonetheless, January’s employment data end a 4-month streak of job growth following a summer of sharp losses. After a year of volatility and resilience in the jobs market, the Bank of Canada will monitor labour market behaviours as global conditions continue to evolve.

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 $1,101,900. This represents a 5.7 per cent decrease over January 2025 and a 1.2 per cent decrease compared to December 2025.

Specifically:

- The benchmark price for detached homes decreased 7.3% from Jan 2025 and decreased 1.5% from Dec 2025.

- The benchmark price for attached/townhouses decreased 5.4% from Jan 2025 and decreased 1.2% from Dec 2025.

- The benchmark price for apartment/condos decreased 5.9% from Jan 2025 and decreased 0.8% from Dec 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.