Vancouver Housing Market Update - Why Buyers Should Act Now

The Vancouver housing market offers a unique chance that smart buyers should consider right now. The average residential sale price for detached properties dropped from $2,651,000 to $2,483,000 between January and July 2025, showing a 6.3% decrease year-over-year. The market's inventory has grown by a lot, with 19% more listings than last year.

The Vancouver housing prices are cooling down, but buyers have good reasons to act now. Sales went up by almost three percent in August 2025 compared to last year. The detached and attached segments did even better with over ten percent growth. The standard price of homes in Metro Vancouver is now $1,150,400, which is 3.8% lower than last year. More sales activity and lower prices make this the right time to buy Vancouver condos or single-family homes. My experience through many market cycles tells me these conditions won't stay this way for long – especially since economic growth looks promising through 2026 and 2027. This fall could be your best time to buy if you've been waiting to enter the Vancouver housing market.

Current Market Snapshot: Where Vancouver Stands in Fall 2025

Fall 2025 brings a crucial change to the Vancouver housing market as conditions become more balanced. Recent market data gives buyers valuable information to make their next move.

Sales volume trends across property types

Metro Vancouver's residential sales reached 2,181 in June 2025, showing a 9.8% drop from June 2024. The decline appears less dramatic than previous months and points to market stabilization. Apartment homes took the biggest hit with sales falling 16.5% year-over-year to 1,040 units. The market for detached homes proved more resilient with just a 5.3% decrease to 657 units. Attached homes stood out by achieving a 3.7% sales increase compared to June 2024. The market's recovery became more evident by July 2025, with total sales hitting 2,286 - just 2% lower than July 2024 figures.

Inventory levels and days on market

The supply side reveals an interesting story. Metro Vancouver's active listings climbed to 17,561 by June 2025, marking a 23.8% jump from June 2024. These inventory numbers now sit 43.7% above the 10-year seasonal average. New property listings rose 10.3% year-over-year in June. Properties now spend more time on the market, ranging from 74 to over 300 days - about 20% longer than last year. Buyers can now negotiate better terms thanks to this expanded inventory.

Vancouver housing prices: year-over-year and month-over-month changes

Vancouver housing prices show adjustments in all categories. Metro Vancouver's benchmark composite price for residential properties reached $1,634,550 in June 2025, dropping 2.8% year-over-year and 0.3% from May. Detached home prices fell 3.2% to $2,779,056. Apartment prices also decreased 3.2% to $1,042,790, while townhouse prices dipped 3% to $1,538,130. July's data followed this pattern with average selling prices at $1,623,682, down 2.7% year-over-year.

Rising inventory combined with moderate prices creates an ideal environment to buy. Mortgage rates have dropped about two percentage points since last summer, giving buyers some of the best conditions seen in recent years.

Why Buyer Hesitation May Be Costly

Buyers in the Vancouver housing market are taking a wait-and-see approach and missing vital opportunities that could help their long-term financial future. My years of experience as a professional realtor have taught me how timing can affect investment outcomes by a lot.

The psychological impact of waiting

The Vancouver housing market has hit a worrying low point in consumer confidence. This makes potential buyers hesitant and uncertain. We noticed a big change in buyer psychology. Back in 2021, people worried about missing out. Now in 2025, they just need to avoid overpaying. A national housing agency survey shows 54% of repeat homebuyers worry about paying too much in today's market. This worry means fewer buyers are active in the market, even though conditions favor them more. The number of Canadians who think property values will rise in the next 12 months has dropped from 68% in April 2021 to less than 40% today. So many qualified buyers stay on the sidelines even though they have the money to buy.

How falling interest rates are moving affordability

Canadian housing is now the most affordable it's been in three years. Mortgage rates have dropped by about two percentage points since last summer. The Bank of Canada will likely cut its policy rate by another 125 basis points to 2% by mid-2025. This will push mortgage rates even lower. On top of that, new policy changes let first-time homebuyers spread their mortgage over 30 years instead of 25 years. This cuts monthly payments by about 8% on homes at the national standard price. Today's market offers a rare mix of factors that work in buyers' favor.

The risk of missing the bottom of the market

One of the best reasons to act now relates to how hard it is to catch market bottoms. As one industry expert puts it, "A lot of people who say to me, 'I want to wait until the bottom,' miss the boat". Past market cycles prove this point. After the 2008 financial crisis, some buyers who bought during uncertain times saw their properties gain a million dollars in value when they sold just 5-7 years later. The current market stability might not stick around, especially as we head into 2026 when a stronger economy could boost housing demand. Once interest rates level off, better affordability will only come from price drops or higher incomes. Vancouver's resilient market history suggests neither is guaranteed.

Opportunities Emerging in a Balanced Market

A balanced market in Vancouver creates valuable opportunities for homebuyers. The current change represents a perfect time to take decisive action instead of hesitating further.

Vancouver condo market: softening prices and rising inventory

The condo segment shows compelling opportunities as prices have softened. Condo apartment average prices dropped 3.5% year-over-year to CAD 1132.80k in August 2025. The price we measure has fallen even more to CAD 1023283.73, which shows a 4.4% decrease from August 2024. This downward trend creates entry points for first-time buyers and investors. Metro Vancouver's inventory has grown to 16,242 active listings by August's end – an 18% increase from last year. Buyers get more time to negotiate since condos stay on the market for 42 days on average.

Detached and attached homes: where value is appearing

Detached homes show remarkable value with average prices dropping 7.9% year-over-over to CAD 2.69M. Attached homes saw a slight increase of 0.4% year-over-year to CAD 1.70M. Sales in both segments jumped more than ten percent from last August, which suggests smart buyers see emerging value. August 2025 saw 575 detached sales, marking a 13% increase from August 2024. Attached home sales reached 409, showing a 10.5% increase.

Sales-to-listing ratios and what they signal for buyers

Vancouver's sales-to-active listings ratio stands at 12.4%, which puts the market in balanced territory. Property ratios show 9.3% for detached homes, 15.8% for attached properties, and 14% for apartments. Historical analysis shows ratios under 12% usually push prices down. This market equilibrium gives buyers strong negotiating power without facing fierce competition.

How mortgage rate trends are favoring buyers

Interest rates continue to fall, making homes more affordable. The Bank of Canada has cut rates by 2.25% in the last 15 months, which improves buyer's purchasing power. Variable mortgage rates should drop another 25 basis points through 2025. Rate changes and price adjustments have created some of the best buying conditions we've seen in years.

What to Expect in 2026 and Beyond

The Vancouver housing market shows promising signs for 2026. After a rough economic patch in 2025, key indicators point to stronger fundamentals that smart investors should think over.

Economic recovery and its effect on housing demand

The modest recession will give way to economic growth in early 2026. Trade relations between U.S. and Canada will improve as bilateral tariffs start dropping in late 2026 when new agreements take effect. Canadian home sales and average prices will climb next year because of better economic conditions and less market uncertainty. My years in the field have taught me that economic recoveries always spark fresh housing demand, which often catches cautious buyers by surprise.

Immigration and population growth projections

Population growth drives our market despite recent changes to immigration targets. B.C.'s population saw its first slight drop in 74 years during early 2025. This small decline just balances out the previous record-breaking growth. Ottawa's immigration targets are lower now but this is a big deal as it means that they still exceed pre-2015 levels. Housing demand will pick up again by 2026 when better economic conditions bring back stronger immigration flows.

Why prices are expected to rebound

MLS® residential sales will jump by 10.7% to 80,600 units in 2026. Average prices should bounce back by 3.2% to around CAD 1,398,933 as buyers return to the market. Different regions will show varied results, but prices will generally trend upward. Today's buyer's market won't stick around forever.

The long-term value of entering the market now

Buyers who jump in during this balanced market will be well-positioned for future gains. My decades in Vancouver's real estate have shown me time and again that people who bought during uncertain times earned great returns once the market turned around. Vancouver's track record shows amazing resilience and long-term growth potential that beats most other Canadian markets.

Finding Your Needs

The Vancouver housing market today needs you to understand what you want. The current balanced market gives buyers a chance to think carefully about their needs instead of making rushed decisions. We took time to explore a variety of Vancouver neighborhoods. Each neighborhood has its own character and amenities that might line up perfectly with your lifestyle.

Think over what matters most in your daily life – work distance, public transit access, parks, schools, and grocery stores nearby. Beyond these simple things, break down any planned developments that could affect future property values in areas you're interested in. High inventory levels mean homes stay on the market between 74 to over 300 days. This lets you be selective while keeping your bargaining power.

Note that buying a home isn't just about market timing – it's about timing your life. Your focus should be on what you can afford, long-term value, and finding the right lifestyle fit rather than speculation. The process needs you to stay flexible with your criteria and keep good notes on properties you visit. The current inventory levels make it easier to find a home that meets your location, size, and feature requirements.

A realtor's job is to help you make use of accurate local market data for better decisions. This balanced market creates the perfect setting to match your needs with the right property.

Key Takeaways

Vancouver's housing market in Fall 2025 presents a rare buyer's opportunity with softening prices, rising inventory, and favorable mortgage conditions that won't last indefinitely.

• Act now before conditions change: Vancouver housing prices dropped 6.3% year-over-year while inventory increased 19%, creating ideal buying conditions not seen in years.

• Mortgage rates favor buyers significantly: Interest rates have fallen 2 percentage points since last summer, with further cuts expected to reach 2% by mid-2025.

• Waiting risks missing market bottom: Historical data shows buyers who hesitate during uncertain times often miss substantial appreciation opportunities when markets recover.

• 2026 recovery will drive demand: Economic growth resuming in early 2026, combined with continued immigration, is projected to increase home sales 10.7% and prices 3.2%.

• Balanced market gives negotiating power: With sales-to-listing ratios at 12.4% and homes staying on market 74-300+ days, buyers can be selective while securing favorable terms.

The convergence of declining prices, lower interest rates, and high inventory creates a perfect storm for buyers. As economic recovery approaches in 2026, those who purchase now position themselves advantageously for Vancouver's historically resilient long-term appreciation potential.

FAQs

Q1. Is now a good time to buy property in Vancouver? Yes, Fall 2025 presents a favorable opportunity for buyers in Vancouver. With softening prices, increased inventory, and lower mortgage rates, current market conditions offer more options and negotiating power for prospective homeowners.

Q2. How have Vancouver housing prices changed recently? Vancouver housing prices have decreased overall. The average residential sale price for detached properties dropped 6.3% year-over-year between January and July 2025, from $2,651,000 to $2,483,000. The benchmark price for all residential properties in Metro Vancouver decreased by 3.8% annually.

Q3. What are the current mortgage rate trends in Vancouver? Mortgage rates have become more favorable for buyers. They have decreased by approximately two percentage points since last summer, and further cuts are expected. The Bank of Canada is projected to reduce its policy rate to 2% by mid-2025, which will likely bring mortgage rates even lower.

Q4. How long are homes staying on the market in Vancouver? Properties in Vancouver are staying on the market significantly longer than in previous years. The average time ranges from 74 to over 300 days, which is nearly 20% longer than last year. This extended period gives buyers more time to make decisions and negotiate.

Q5. What is the forecast for Vancouver's housing market in 2026? The outlook for 2026 is positive. Economic recovery is expected to strengthen housing demand. MLS® residential sales are forecast to increase by 10.7% to 80,600 units, and average prices are projected to rebound by 3.2% to approximately CAD 1,398,933 as market demand re-emerges.