Greater Vancouver Faces Historic Low in Home Sales for 2025

URGENT UPDATE: The Greater Vancouver area is on track for its lowest year of home sales this century, with just 1,846 residential properties sold in November alone. This brings the total for the year to a staggering 22,263 homes, threatening to break the previous record low of 24,619 properties sold in 2018.

Experts indicate that this sharp decline is largely driven by ongoing affordability challenges, economic uncertainty, and elevated mortgage rates. Bryan Yu, chief economist at Central 1 Credit Union, stated, “It’s largely a reflection of what we’re seeing on the affordability front, the lack of certainty in the economy, and mortgage rates — while lower than they were the last couple years — still quite elevated relative to what we would have seen a few years ago.”

As the year concludes, the market remains stagnant in terms of sale prices, with the average price of a detached home at $2.02 million and a condo just under $800,000. In contrast, the Fraser Valley is experiencing a notable decline, with average home prices dropping to $1.45 million, a 19% decline since March 2022. Condos in the area are also feeling the squeeze, now averaging $507,606, down 15% over the same timeframe.

Andrew Lis, chief economist for Greater Vancouver Realtors, commented, “As the year draws to a close, the data continues telling a story of a market with many buyers patiently waiting and sellers adjusting to market conditions not seen in years.”

In a concurrent development, Statistics Canada has released rental market data confirming a significant drop in asking prices. The average rent for a one-bedroom apartment in Metro Vancouver is now $2,390, down from $2,510 last year, marking a 9.5% decrease. Two-bedroom units have also seen a decline, now priced at $3,190, down $200 from the previous year.

Josh Gordon, a senior analyst with Statistics Canada, noted, “There has been a notable change in the rental market in recent years and one of the most rapid or significant declines has been in Vancouver.” He cautioned, however, that it is too early to determine the causes behind the drop in rents, as ongoing construction projects may not meet demand in a timely manner.

Yu added that several factors, including migration caps in Canada and a slowing economy, are likely to keep rental prices in check for the foreseeable future. “The acceleration events that we saw were really quite unaffordable for a lot of potential renters. And now they have some choice of where they want to move or negotiate some incentives,” he noted.

With the year nearing its end, the housing market in Greater Vancouver appears to be at a critical juncture, raising questions about future trends in both home sales and rental prices. Observers will be closely monitoring developments in the coming months to see how these dynamics evolve.

Stay tuned for more updates as this situation develops.