Surrey Real Estate Market Trends 2026

Surrey BC real estate market trends Surrey is the largest city by land area and second most populated in Metro Vancouver, with a population estimated at 726,369 as of July 2025. Population is projected to swell from 701,000 in 2024 to 771,000 by 2031, cresting 897,000 in 2041 before hitting 1.005 million in 2051 - making it the first BC city to crack seven figures. The Surrey real estate market in 2026 is characterized by softening prices, rising inventory, and improved conditions for buyers after years of seller-dominated competition.

Price Trends by Property Type

The Surrey Housing Market Report for February 2026 shows the following average prices: overall average price $946,468 with a benchmark price of $944,800, representing a 0.5% monthly increase. Detached homes average $1,473,513, showing a 4.2% monthly decrease. Attached homes average $804,408, down 1.3% monthly. Apartments and condos average $485,853, down 9.3% in the most recent month. Fraser Valley Real Estate Board benchmark prices tell a similar story. Single-family detached homes sit at $1,370,900, decreased 0.2% monthly and 8.6% compared to February 2025. Townhomes benchmark at $770,700, decreased 0.3% monthly and 7.1% annually. Apartments and condos benchmark at $488,300, decreased 0.1% monthly and 8.9% annually. Prices have reached pandemic-era levels after ten consecutive months of decline. The market is characterized as a buyer's market with high inventory amid economic uncertainty and consumer financial pressure.

Sales Activity and Inventory

The Fraser Valley Real Estate Board recorded 843 sales on its Multiple Listing Service in February, a 36 per cent increase from January, but 38 per cent below the ten-year seasonal average. Active listings reached 8,344, up 8% from January and 51% above the ten-year seasonal average. New listings came in at 2,796, down 9% from January. The sales-to-active listings ratio sits at 10%, indicating a buyer's market where balanced is typically 12-20%.

Days on market have improved slightly from January: single-family detached homes average 47 days, condos and apartments average 45 days, and townhomes average 39 days. In January 2026, those figures were 55, 53, and 50 days respectively, reflecting the seasonal pickup in activity. Transaction activity slowed during 2025 compared to earlier peak years, with the volume of Surrey homes for sale increasing significantly. Active listings are roughly 40-50% above the five-year average. The sold-to-list price ratio has settled around 96-97%, providing buyers with 3-4% negotiating room on most properties. Total transactions in Surrey reached 334 in February, a 30.5% increase from January, with detached home sales at 119 units representing a 49% monthly increase. Currently Surrey has 3,921 homes for sale including 1,615 houses, 1,017 condos, and 956 townhouses on the market.

Market Forecast and Outlook

Multiple forecasting agencies offer varying predictions for 2026. CREA forecasts national prices rising 2.8% to $698,881. Royal LePage predicts Q4 2026 at +1.0% year-over-year, with single-detached homes up 2.0% but condos declining 2.5%. TD Economics projects a 4.1% increase while RBC forecasts a 0.7% decline. Re/Max projects a 3.7% national decline. BMO Capital Markets expects home prices will not recover pandemic peaks until 2029. CMHC's Housing Market Outlook for British Columbia indicates resale markets will show signs of recovery but remain below long-term averages. Housing starts will continue to slow down in 2026 with a more significant decline expected in 2027-2028. Lower condominium presale activity will limit new condominium construction over the next 3 years. Moderate recovery in resale markets is expected in 2026 after historically weak 2025, though sales growth is likely to slow in 2027-2028. Borrowing capacity is forecast at $329,348 for Q1 2026, rising to approximately $340,000 by Q3 2028.

Interest Rate Environment

Bank of Canada cut rates 1.0% during 2025, and mortgage rates have declined but remain elevated. Two additional Bank of Canada cuts totaling 0.50% are anticipated in the next 12 months. The best available 5-year variable rate in BC sits at 3.45% from National Bank, while the best 5-year fixed rate is 3.84% from RFA Mortgage. The prime rate currently stands at 4.45%. Rate forecast projects 5-year fixed rates at approximately 3.85% within 8 months. The $500K-$800K townhouse and condo segment is most sensitive to rate changes as these units are targeted by first-time buyers with smaller down payments and tighter qualification margins. Trade uncertainty is cited as a major headwind for housing recovery across Canada. International migration to BC is declining in 2026, primarily non-permanent resident flows, while improved affordability is reducing interprovincial migration outflows from Vancouver and Victoria.