British Columbia’s housing market experienced another quarter of cooling conditions in Q2 2025, following an already soft start to the year. The latest data from Edge Realty Analytics shows that both sales activity and pricing trends remained under pressure, while inventory levels stayed high enough to give buyers more negotiating power.Sales Activity Remains SubduedAfter a sharp quarter-over-quarter (q/q) drop of 13.3% in Q1 2025, home sales in British Columbia fell another 7.1% in Q2. Year-over-year (y/y) comparisons were also negative, with transactions down 8.9% from the same period in 2024. This two-quarter decline may be pointing to demand being held back by affordability constraints, along with other economic factors.Listings Activity ShiftsNew listings surged in Q1 2025, up 12.8% q/q and 18.0% y/y, but reversed course in Q2. The province saw a 10.6% drop in new listings from the previous quarter and a marginal 0.5% decline from a year earlier. Active listings told a slightly different story. Inventory rose significantly in Q1, up 12.4% q/q and 27.0% y/y, but dipped 1.1% q/q in Q2. Even so, active listings remained 14.6% higher than in Q2 2024, keeping the supply picture far looser than in recent years.Prices Edge Down for a Second QuarterThe Home Price Index (HPI) posted modest declines in both Q1 and Q2 2025. Prices fell 0.4% q/q and 1.3% y/y in the first quarter, followed by a 0.2% q/q and 2.0% y/y drop in Q2. While the size of these price adjustments is relatively small, the trend reflects a gradual shift in market dynamics toward buyers.Supply-Demand BalanceMonths of inventory remained elevated at 7.8 in Q1 and 7.1 in Q2, reaching levels that typically indicate a buyer’s market. The sales-to-new listings ratio reflected similar conditions, dipping to 38.1% in Q1 before edging up to 40.5% in Q2. Again, these readings reflect a buyer’s market, signalling that sellers may need to be flexible on pricing and terms.Construction Activity Residential construction activity in the province remained relatively stable. Dwellings under construction were down 0.5% q/q but up 0.8% y/y in Q1. In Q2, construction saw a slight 0.4% q/q increase, though it was still 1.9% below year-ago levels.