May 2025 Real Estate Report: The Come Back?

Vancouver real estate news shows a major change in the market. Residential sales fell 18.5% in May 2025 compared to last year, with only 2,228 properties sold. The current sales numbers are 30.5% lower than the 10-year seasonal average, which shows the market is cooling quickly. Metro Vancouver's property listings have grown to 17,094, marking a 25.7% increase from May 2024. These numbers now stand 45.9% above the 10-year average.

Our team at Paul Eviston watches these Vancouver housing market trends carefully to help our clients make informed decisions. The price for all residential properties now averages $1,177,100, which is 2.9% less than last year. The market's detached homes have seen bigger price drops, now averaging $1,997,400 - a 3.2% decrease from last year. Vancouver's housing prices vary by a lot between different areas. Condo apartments now cost $801,000, showing a 3.6% decrease from last year. The sales-to-active listings ratio stands at 13.4%, which tells us we're in a buyer's market. This creates excellent opportunities for people who want to buy Vancouver real estate now.

Inventory and Sales Trends in May 2025

The Metro Vancouver property market hit a notable milestone in May 2025. Property listings have reached their peak in ten years. This creates a market environment that looks very different from what we've seen lately.

Rising inventory levels across Metro Vancouver

The MLS® system shows 17,094 properties up for sale across Metro Vancouver. This represents a big jump of 25.7% compared to May 2024. Available listings now exceed the 10-year seasonal average by 46%. The number of properties on the market hasn't been this high since early 2016.

Buyers keep listing more properties than people want to buy. May brought 6,620 new properties to the market, which is 3.9% more than last year. These numbers are 9.3% higher than the 10-year seasonal average. Team Paul Eviston notices that buyers now have more choices than they've had in years. East Vancouver's condo market shows this trend clearly.

Sales volume compared to 10-year seasonal averages

Property sales have dropped sharply while inventory keeps rising. May 2025 saw only 2,228 properties sold, showing an 18.5% drop from May 2024. These numbers fall 30.5% below the 10-year seasonal average of 3,206 sales.

Sales patterns vary among different property types. Detached homes made up 654 sales, apartments accounted for 1,087, and attached homes totaled 469. Year-to-date sales in 2025 match the slow patterns we saw in 2019 and 2020. These numbers rank among the lowest starts to any year in the past decade.

Buyers looking at Vancouver's West Side have a rare chance since low sales usually mean better negotiating power.

Sales-to-active listings ratio and what it means

Market conditions become clearer when we look at the sales-to-active listings ratio, now at 13.4% for all properties. Each housing type shows different numbers:

• Detached homes: 10.2% (buyers have the most advantage)
• Attached homes: 17.4%
• Apartments: 14.7%

Past trends show that prices tend to drop when this ratio stays below 12% for a while. Prices usually rise when the ratio goes above 20%.

Vancouver's sales-to-new listings ratio (SNLR) sits at 34% for May 2025. This keeps the market favorable for buyers. Real estate experts say an SNLR below 40% points to a buyer's market, while anything above 60% favors sellers.

Our experience as Vancouver realtors shows these numbers affecting real deals. Sellers in Vancouver's East Side have started adjusting their prices. This gives buyers more room to negotiate and helps keep prices stable in recent months.

Price Movements by Property Type and Region

The property values in Vancouver show clear regional patterns this May 2025. Different housing types reveal unique price trends. Our team at Team Paul Eviston watches these price changes closely to help our clients find their way through Vancouver's changing real estate scene.

Detached homes: East vs West Vancouver

East and West Vancouver's detached home prices show a big price gap. East Vancouver's benchmark price now stands at CAD 2,547,898.47. This price dropped 1.3% from last month and fell 2.7% from last year. These homes cost less than Metro Vancouver's average benchmark of CAD 2,783,097.67. This makes them a good starting point for buyers looking at detached homes. West Vancouver's luxury homes still fetch CAD 4,686,009.70, even after a steeper 1.9% monthly drop and 5.2% yearly decline. The price gap shows how West Vancouver stays a premium market despite recent price changes.

Condo pricing trends in East Vancouver

East Vancouver offers some of the region's best-priced condominiums. The area's benchmark price sits at CAD 969,778.70. This follows a 1.1% drop from April and a 3.2% decline from last year. These prices stay below Metro Vancouver's condo benchmark of CAD 1,055,191.68. First-time buyers and investors find great opportunities here. Our recent buyer conversations show they have more room to negotiate as sellers adjust their expectations.

Townhouse values in West Vancouver

West Vancouver's townhouses give luxury buyers more space without a detached home's upkeep. The benchmark price reads CAD 1,977,178.13. This shows a small 0.4% monthly decline and a larger 4.9% yearly drop. These homes cost more than Metro Vancouver's townhouse benchmark of CAD 1,542,171.07. Recent price changes create new value opportunities. Our team notices that townhouses with ocean views or close amenities keep their value better.

Benchmark vs average price: what's the difference?

Vancouver's housing prices use different measurement tools. The benchmark price shows what a "typical" home costs with popular features in an area. This measurement works differently from the average price, which adds all sale prices and divides by sold properties. Metro Vancouver's detached homes have a benchmark price of CAD 2,783,097.67. The average sale price in May reached CAD 2,851,816.80. This difference changes what buyers and sellers expect. The median price helps too. It shows the middle point where half the properties sold for more and half for less. This gives another way to look at market conditions.

What the Numbers Say About Buyer and Seller Power

The numbers paint a clear picture of how Vancouver's property market has shifted from sellers to buyers in May 2025. Our team at Paul Eviston looks at several key indicators to help our clients make smart real estate decisions.

Sales-to-new listings ratio (SNLR) and market balance

Vancouver's sales-to-new listings ratio sits at 34% for May 2025, up slightly from April's 32%. This puts Vancouver squarely in a buyer's market. Real estate experts say an SNLR under 40% means buyers have the upper hand. So buyers face less competition for properties, while sellers wait longer to get offers they like.

The sales-to-active listings ratio varies a lot between property types: 10.2% for detached homes, 17.4% for attached properties, and 14.7% for apartments. Prices tend to drop when this ratio stays below 12%. Since detached homes are already below this mark, we're guiding our clients on the best time to buy. Book an appointment with us - Paul Eviston; the best Vancouver realtor to learn how these market conditions could affect your property search.

How pricing expectations are shifting

Sellers across Metro Vancouver are adapting to the new market reality. TD Economics now expects home prices to fall 4.1% this year, after growing 1.7% in 2024. This is the biggest forecast drop among Canadian provinces, showing "muted demand conditions" and a market that clearly favors buyers.

The numbers tell the story clearly. Greater Vancouver's average home price hit $1,764,608 in May 2025, down 5.9% from last year. Detached houses took the biggest hit with an 8.0% drop, while apartments fell 3.6%.

Why buyers have more room to negotiate

Vancouver now has the best inventory levels in years. This creates great opportunities for buyers to negotiate. May saw 6,620 new listings, up 3.9% from last year. Sales haven't kept pace, giving buyers many options to choose from.

The market isn't following its usual patterns. Spring usually brings a rush of sales, but outside factors have slowed things down. While January-to-April sales typically jump 79% over the past decade, 2025 only saw a 34% increase.

The benchmark price remains 6.6% lower than its April 2022 peak. This suggests buyers who take their time and bid below asking price might get good deals. The current market looks similar to early 2023, when prices stayed flat before picking up later that year.

Macroeconomic and Policy Factors Influencing the Market

Vancouver's real estate market has seen dramatic changes as we move through May 2025. Our team at Paul Eviston wants to help you understand what's driving these changes and how they might affect your real estate decisions.

How mortgage rate cuts affect buyer activity

The Bank of Canada's recent interest rate cuts are changing the way buyers approach Vancouver's housing market. Monthly mortgage payments have become more affordable, which brings previously hesitant buyers back into the market. Sales numbers jumped up in major B.C. cities last October right after these rates dropped.

More buyers now qualify for mortgages thanks to lower borrowing costs. First-time homebuyers who couldn't break into Vancouver's competitive market before now have a better chance. Book an appointment with us - Paul Eviston; the best Vancouver realtor to learn how these rate cuts could boost your buying power in today's market.

Mortgage rates still sit nowhere near the 2010-2020 average, which puts limits on what buyers can afford. On top of that, about 60% of existing mortgages need renewal in the next two years. Many homeowners will face much higher payments than their original agreements.

Trade tensions and migration policy's effect on demand

Recent trade fights between Canada and the U.S. have created uncertainty in Vancouver's real estate market. Building costs could rise because of retaliatory tariffs on construction materials. This might hurt homebuilding and make homes less affordable throughout Vancouver.

Canada has also altered its immigration approach. The federal government dropped its target for new permanent residents in 2025 to 395,000 from 485,000—an 18.5% reduction. This change aims to ease pressure on the housing market, since Greater Vancouver took in much of Canada's population growth from 2021 to 2023.

Developer response: fewer pre-sales and cautious launches

Metro Vancouver's developers have become more careful in response to these economic pressures. New project launches in May 2025 are running at half their usual numbers. The launch volume has fallen sharply - April 2025 saw 70% fewer launches than April 2024.

Presale absorption rates have dropped to 14% in April, which falls well short of the five-year average of 30%. Many developers now wait for clearer economic signals and trade policies before launching new projects. Those who move forward prefer smaller low-rise developments that appeal to people who plan to live in their units rather than investors.

The presale market struggles without investor buyers, who typically play a key role but now can't get enough rental income to cover their mortgage costs. Large concrete towers feel this pinch the most since they've always relied heavily on investor participation.

FAQs

Q1. What are the current trends in Vancouver's real estate market for May 2025? Vancouver's real estate market in May 2025 shows a significant cooling, with sales dropping 18.5% compared to last year and 30.5% below the 10-year seasonal average. Property listings have increased by 25.7% from May 2024, indicating a shift towards a buyer's market.

Q2. How have property prices changed in Vancouver? The benchmark price for all residential properties in Vancouver has decreased by 2.9% compared to last year, now sitting at $1,177,100. Detached homes have seen a more significant adjustment, with prices down 3.2% annually to an average of $1,997,400.

Q3. What does the current sales-to-active listings ratio indicate about the market? The sales-to-active listings ratio of 13.4% suggests Vancouver has entered buyer's market territory. This ratio varies by property type, with detached homes at 10.2%, attached homes at 17.4%, and apartments at 14.7%, indicating more negotiating power for buyers across all categories.

Q4. How are mortgage rate changes affecting buyer activity in Vancouver? Recent interest rate cuts by the Bank of Canada have improved affordability by reducing monthly mortgage payments. This has encouraged previously sidelined buyers to consider entering the market, particularly benefiting first-time homebuyers who were previously priced out of Vancouver's competitive market.

Q5. How are developers responding to the current market conditions? Developers in Metro Vancouver have adopted cautious strategies, with approximately half as many new projects coming online compared to historical norms. Many are postponing launches or focusing on smaller-scale low-rise developments that appeal to end-users rather than investors, due to lower presale absorption rates and economic uncertainties.