Vancouver Real Estate Market Update: Q1 2025 Insights

Vancouver Real Estate Market Update: Q1 2025 Insights

The first quarter of 2025 presented a dynamic picture for the Metro Vancouver real estate market. While activity levels have adjusted compared to previous highs, the market continues to show signs of resilience and ongoing transitions. This update, brought to you by inCAN Developments, delves into the key trends observed in early 2025, offering fact-based insights for homeowners, buyers, and industry observers.

Market Overview: A "Wait and See" Approach

The beginning of 2025 saw market participants adopting a more cautious stance, often described as a "wait and see" approach. Overall sales activity reflects this sentiment.

• New Multi-Family Sales: In the new multi-family home sector, Q1 2025 recorded 1,427 sales. This represents a decrease of 28% from the previous quarter and 47% compared to the same period last year.

• Resale Market Sales (April 2025): The broader resale market saw 3,130 sales in April 2025, which is below the 10-year average for the month, indicating softer demand. Detached home sales saw the largest deviation from the average (-53%), followed by townhomes (-33%) and condos (-24%). Year-over-year, total sales were down 26% from April 2024.

  
  

Inventory and Listings: More Options Emerge

An increase in available properties marked the early 2025 market, providing more choices for potential buyers.

• New Multi-Family Inventory: Sixteen new multi-family projects, comprising 1,311 units, were released in Q1, with 24% selling during the quarter. Despite positive activity signs, the gap between released/unsold units and sales widened by the end of Q1.

• Resale Market Listings (April 2025): New listings remained robust in April, with 10,178 homes coming to market, 18% above the 10-year average for April. Condo (+32%) and townhome (+24%) new listings were significantly above average, while detached new listings were slightly below (-2%).

• Active Inventory (April 2025): Total active MLS listings reached 24,225 at the end of April, a 34% increase from April 2024 and the highest level since July 2013. This figure is 60% higher than the 10-year April average. All segments saw inventory rise above average, particularly condos (+82%) and townhomes (+73%).

• Months of Inventory (MOI): The overall MOI stood at 7.7 months in April, up from 4.3 in April 2024. This indicates a shift towards more balanced conditions, particularly for townhomes (5.8 MOI) and condos (6.6 MOI), while the detached market (10.8 MOI) moved into buyer's market territory.

Pricing Trends: Market Adjustments

Median prices showed adjustments across different areas and property types.

• Resale Market Median Prices (April 2025):

  • Greater Vancouver: Median prices decreased year-over-year by 4% on average. Detached homes were down 5% (to $1.83M), townhomes down 2% (to $1.07M), and condos down 3% (to $708K). Month-over-month, prices saw slight decreases across the board.

  • Fraser Valley: Median prices decreased year-over-year by 3% on average. Detached homes were down 2.0% (to $1.47M), townhomes down 3% (to $830K), and condos down 3% (to $532K). Month-over-month changes were minimal, with a slight increase for condos.

Developer Activity and Market Dynamics

Developers responded to market conditions with strategies aimed at stimulating activity. Creative incentives such as low deposit structures, developer-paid GST, pricing discounts, and rental rate buy-downs were observed in Q1. Several projects experienced successful sales activity during this period.

Looking Ahead

The Vancouver real estate market is navigating a period of adjustment. Increased inventory levels offer more opportunities for buyers, while pricing reflects the moderated pace of sales. As the year progresses, market watchers will be closely monitoring factors like interest rates, economic conditions, and buyer confidence, which will shape the trajectory of Vancouver's housing market.

Stay tuned to inCAN Developments for further updates and insights into the Metro Vancouver real estate landscape.

Disclaimer: This article summarizes data from reports by Zonda Urban and Rennie for Q1 2025 and April 2025, respectively. Market conditions are subject to change.