Canada’s economic momentum took a step back in February 2025, as new GDP figures reveal a 0.2% monthly decline—an unexpected turn following a strong 0.4% gain in January. The latest data from Statistics Canada show broad weakness across sectors, with 12 of 20 major industries reporting contraction.
Service-producing industries saw a modest 0.1% dip, while goods-producing sectors shrank more sharply by 0.6%. The steepest declines came from mining, quarrying, and oil and gas extraction (-2.5%), construction (-0.5%), and transportation and warehousing (-1.1%).
Real estate was one of the hardest-hit sectors in February. GDP from offices of real estate agents and brokers plummeted by a striking 10.4% month-over-month, reflecting growing uncertainty in the housing market and a notable cooling in buyer activity.
Despite the setback, preliminary estimates suggest a slight rebound in March with GDP expected to rise by 0.1%. However, this sluggish growth puts the Canadian economy behind the Bank of Canada’s most recent quarterly forecasts.
Much of this economic turbulence stems from newly implemented trade tariffs that are beginning to ripple across industries. The Bank of Canada has acknowledged these inflationary risks but has so far opted for a cautious approach, holding off on further interest rate adjustments. All eyes are now on the upcoming inflation (CPI) and GDP reports, which are likely to shape the Bank’s next rate decision in June.
What This Means for Real Estate in BC
For buyers, sellers, and investors, this economic backdrop underscores the importance of timing and strategy. Volatility in GDP and real estate services data may lead to fluctuating mortgage rates, shifting home prices, and changes in consumer confidence.
As always, working with knowledgeable real estate professionals is key to navigating uncertain market conditions. Whether you’re buying, selling, or investing, staying informed will be your best advantage in 2025’s dynamic housing landscape.
