Vancouver Luxury Housing Market Experiences Significant Decline

The luxury housing market in Vancouver is currently facing serious challenges, with conditions remaining stagnant since May. According to a report from Sotheby’s International Realty Canada, the downturn is largely attributed to ongoing economic and geopolitical uncertainty, which has also impacted the broader housing market in the region.

Consumer sentiment has been notably cautious, as potential buyers are waiting for clearer economic indicators. As a result, sales activity remains restrained, with many opting to postpone purchases until they feel more confident about the market’s direction. “Consumer sentiment and sales activity remained largely restrained, as buyers paused and awaited greater economic clarity,” Sotheby’s stated in its recent analysis.

Data from Greater Vancouver Realtors (GVR) reveals that year-to-date housing sales in the area have reached some of the slowest levels seen in the past decade. As of May, there was a notable increase in inventory across Metro Vancouver, which has reached a ten-year high. This increase comes amid a reported 9.8 percent decrease in residential sales compared to June 2024, with properties valued over $1 million experiencing a significant 26 percent decline, resulting in 1,760 homes sold.

Substantial Decline in Luxury Property Sales

Sales of higher-end properties, particularly those valued over $4 million, plummeted by 51 percent in the first half of 2025 compared to the previous year, with only 85 properties sold within the City of Vancouver. The ultra-luxury segment, which includes properties priced at $10 million or more, suffered a drastic reduction in activity, with only two transactions recorded through the Multiple Listing Service (MLS), down from seven during the same period last year.

Sotheby’s noted that Vancouver has experienced the most substantial decline among major metropolitan markets in Canada during this period. The city recorded a 51 percent year-over-year decrease in residential sales for properties over $4 million, significantly outpacing the 23 percent decline observed in Toronto. Meanwhile, the luxury markets in Montreal and Calgary saw increases, with sales rising 26 percent and 43 percent respectively in the same price range.

The luxury condominium market is also facing challenges. A notable example includes a luxury condo located at 1568 Alberni St., which has been on the market for 336 days despite a price reduction to $16.9 million. The overall luxury condo market has seen a 29 percent drop in sales for properties priced over $4 million, with only ten units sold. Additionally, the segment for condos priced over $10 million saw no sales, mirroring last year’s performance.

Outlook for the Vancouver Luxury Market

In light of these figures, Sotheby’s remains cautious about the potential for a rebound in the luxury housing market during the summer months. The firm suggests that while a dramatic recovery may be unlikely, there is a glimmer of hope for renewed activity in the coming months as market conditions evolve.

As the Vancouver luxury market navigates these turbulent times, it remains clear that economic factors and consumer confidence will play critical roles in determining its trajectory. The current climate serves as a reminder of the interconnected nature of global events and local markets, impacting buyer behavior in significant ways.