February 2026 Real Estate Market Insights
Join hosts Suzana Goncalves and Brittany Reimer for The Pulse, February 2026 as they examine a market that continues to move cautiously into the new year. With interest rates holding steady, resale activity slowing further, modest presale launches, and rental supply building across the Lower Mainland, they unpack what’s driving today’s conditions — and where opportunity is beginning to take shape in 2026.
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Macroeconomic Conditions
The Bank of Canada held its overnight rate at 2.25% for a second consecutive meeting as inflation hovers just above target and economic growth remains muted. CPI averaged 2.1% in 2025 — the smallest annual gain since 2020 — though prices remain nearly 20% higher than five years ago, continuing to pressure households. GDP momentum has been limited, housing activity remains subdued, and labour markets are showing signs of cooling, suggesting interest rates are likely to remain stable in the near term as policymakers balance inflation control with a fragile growth environment.
Presale Market Overview
January delivered two project launches totaling 73 units, achieving a 30% same-month absorption rate largely driven by a successful townhome release in Squamish, though overall activity remains well below historical averages. Developers continue to prioritize smaller, end-user focused wood-frame and townhome projects amid elevated resale competition and affordability pressures, while concrete product remains largely sidelined. Three additional townhome launches totaling 64 units are forecast for February, signalling a continued but measured pace of new supply entering the market.
Rental Market Overview
January marked the formal introduction of the Rental Pulse, reflecting how closely rental performance now intersects with presale and resale dynamics. One purpose-built rental project completed in January, delivering 131 units with a reported 76% leased rate, while five additional projects totaling 667 units are forecast for February. Average rents across major submarkets sit near $2,700 per month with $4.00 PSF, down approximately 5% over the past six months but stabilizing recently, as rising supply and increased investor-owned inventory create competitive conditions where pricing strategy remains critical to absorption.
Resale Market Forecast
Resale activity began 2026 on a soft note, with sales down over 30% month-over-month in both Greater Vancouver and the Fraser Valley and inventory levels remaining well above ten-year averages. Benchmark pricing has declined roughly 1% since December and as much as 7% year over year, with Fraser Valley benchmark values falling below $900,000 for the first time since 2021 and North Surrey apartment pricing reflecting notable downward adjustments. Elevated supply, cautious buyer sentiment, and competitive pricing continue to define conditions, with Spring 2026 expected to provide the first meaningful indication of whether improved affordability can translate into stronger market momentum.
Projects mentioned in this episode:
• Terrain at Garibaldi Springs – Polygon
• Crystal Apartments – Lougheed Properties
Links mentioned in this episode:
• February 2026 The Pulse Report
• MLA Advisory Services and Sample Reports
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