Why agents use it
A 900 sq ft condo that sold for $720,000 and a 1,200 sq ft condo that sold for $900,000 both sold at $800 per square foot. They are equivalent in price efficiency even though the sale prices differ. PSF makes it easier to explain pricing to clients without relying on raw dollar amounts.
Read the direction, not just the level
A rising PSF trend means buyers are paying more per square foot over time, which usually points to a tightening market. A flat or falling trend suggests softer demand or more supply.
A sub-market at $700 and rising quickly is often a stronger signal for urgency than one at $750 that has been flat for six months.
Compare areas fairly
PSF turns a vague area comparison into a concrete one: for the same price per square foot, here is the size, building age and location you get in each neighbourhood. Recent transaction data is more persuasive to a client than anecdotal market commentary.
What PSF misses
PSF does not account for lot size, view, floor level or building quality. A top-floor corner unit and a ground-floor interior unit in the same building can differ in value per square foot. Start with PSF, then adjust for what the number cannot capture.
General information for BC real estate agents, published 2026-10-27. It is not legal or tax advice, and rules and forms change, so confirm details with your brokerage, the BC Financial Services Authority or a lawyer.