Vancouver Housing Prices: The Hidden Truth About Mortgage Rates in 2025

The Vancouver housing market has entered an interesting phase in 2025. The market shows notable changes that affect both buyers and sellers. My firsthand experience with clients in Metro Vancouver reveals a market that's finding its balance after years of ups and downs. Today's scenario stands in stark contrast to previous years, especially regarding prices, available homes, and buyer attitudes.

Current average house price in Vancouver

The average residential sale price in Greater Vancouver reached CAD 1,763,534 in October 2025. This represents a modest 1.2% yearly increase and 1% monthly growth from September. The standard measure of prices tells a different story. The benchmark price for all residential properties in Metro Vancouver stands at CAD 1,577,980. This shows a 3.4% drop from October 2024 and a 0.8% monthly decline.

Different property types show varied results. Detached homes still have the highest prices. The benchmark hit CAD 2,670,235 in October 2025, dropping 4.3% from last year and 0.9% from last month. Townhouses proved more stable with a benchmark price of CAD 1,486,297. This reflects a 3.8% yearly decrease and a minor 0.3% monthly decline. The condo market felt the strongest pressure. Benchmark prices fell to CAD 1,001,686 - a 5.1% yearly drop and 1.4% monthly decrease.

My clients who want to buy their first home should note the difference between average and benchmark prices. To cite an instance, see how the average detached home price grew by 1.6% yearly to CAD 2.93 million despite benchmark drops. This shows that expensive properties still push the average up.

How benchmark prices have shifted since 2022

The last three years brought radical changes to Vancouver's housing prices. The market hit an all-time high of CAD 1,755,494 in April 2022. Since then, prices have moved like a roller coaster. Vancouver's benchmark home price now sits about 10% below that 2022 peak. This marks a big correction after years of steady growth.

This cooling follows an amazing decade of growth. Vancouver's benchmark home prices rose by 40% in the last ten years. Notwithstanding that, the market struggled since 2022. Quick interest rate hikes made homes harder to afford. Detached homes felt this most. Prices dropped below CAD 2.70 million, a level that seemed stable since January 2024.

The sort of thing I love is how different property types adjusted. Detached homes saw bigger drops from their peaks but started to stabilize. Condos faced steady downward pressure, with benchmark prices falling since spring 2024.

Why 2025 is a turning point for buyers and sellers

My 20+ years as a Vancouver realtor rarely showed market conditions this good for buyers. Several factors make 2025 a key turning point. Metro Vancouver now has 16,393 homes for sale. This shows a 13.2% rise from last year and sits just 6.7% below the 17,561 peak from June 2025. Buyers now have more choices and bargaining power than they've had in years.

The sales-to-active listings ratio reached 13.8% in October. This puts us in a balanced to buyer's market. Ratios under 12% usually mean falling prices, while sustained ratios above 20% support price increases. June 2025's sales-to-new listings ratio hit 34.5%, well under the 40% buyer's market threshold.

The Bank of Canada's rate cuts improved affordability and buyer confidence. Andrew Lis, GVR's director of economics and data analytics, said, "Easing prices, near-record high inventory levels, and increasingly favorable borrowing costs are offering those looking to purchase a home this fall with plenty of chance". Markets expect one more rate cut by 2025's end. This gives buyers good reasons to feel optimistic.

Sellers need realistic pricing in this competitive market. The time of limited listings driving prices up has passed. Motivated sellers now set more realistic prices, which adds to the general price softening across all segments.

Some positive signs exist despite these challenges. Projections suggest Vancouver property prices might rise by 7% in 2025, with sales possibly growing by 20%. New buyers and those moving up, especially those using new 30-year insured mortgages, could boost activity soon.

This year stands out because of competing market forces. High inventory and careful buyers push prices down. Lower interest rates and helpful policies might stimulate growth. The winner of this battle will likely set the market's direction through 2025 and into 2026.

Detached, attached, and condo prices: a closer look

The Vancouver property market shows unique patterns for each type of housing in 2025. My decades in this market have taught me that the differences between housing types have never been this striking.

Detached homes: price trends and buyer interest

The detached housing market tells an interesting story in 2025. February data shows the measure price for a detached home reached CAD 2,823,644, which was up 2.8% from February 2024 and 0.8% from January 2025. Recent October figures paint a different picture, with the measure price dropping to CAD 2,670,235 – down 4.3% from last year and 0.9% from the previous month.

Sellers should note that detached house prices have dropped below the CAD 2.70 million psychological barrier from January 2024. My talks with potential buyers show this threshold really matters. They've waited for this moment to make offers because they see better value now than at any point in the last two years.

Sales numbers tell the same story. Detached home sales reached only 477 units in February 2025 – down 14.8% from 560 sales in February 2024. October sales totaled 693 units, showing another 14.3% drop compared to October 2024. We're seeing fewer sales at lower prices, which makes this a strong buyer's market for detached homes.

Townhouses: affordability and demand

Townhouses have proven the most stable housing type in Vancouver through 2025. The measure price hit CAD 1,548,162 in February, up 1% from February 2024. October's measure price fell to CAD 1,486,297, but this 3.8% yearly decrease wasn't as severe as detached homes.

Attached home sales reached 359 in February 2025, down 10.9% from February 2024. By October, sales climbed to 477 units. Townhouses stand out because they give buyers more space than condos at nowhere near the cost of detached homes.

The average price of an attached house in Greater Vancouver fell by 8.0% year-over-year to CAD 1,649,717 in October 2025. This bigger drop in average price versus the measure price suggests more lower-priced townhouses are selling.

My clients throughout 2025 show that young families love townhouses. They can't afford detached homes but want more space than condos offer. This steady interest has helped keep the townhouse market more stable than other property types.

Condo apartments: oversupply and price drops

The condo market faces the biggest challenges in 2025, mainly because there are too many units available. About 2,500 newly built condos sit empty across Metro Vancouver – twice as many as last year according to CMHC data. Some reports suggest even higher numbers, with 3,215 completed and unsold condos and townhomes by mid-2025.

The measure condo prices have fallen to CAD 1,001,686 – down 5.1% from last year and 1.4% from last month in October 2025. Prices keep dropping, with the measure apartment price losing about CAD 6,966 in just one month.

The extra supply clusters in specific areas: 930 unsold units in Burnaby/New Westminster, 655 in Richmond/South Delta, and 387 in the Tri-Cities. Most are concrete high-rises (66% of unsold inventory), priced between CAD 1,114,688 and CAD 1.67 million.

Several things caused this situation. Developers built many units for investors, who made up half of all buyers from 2021 to 2023 but only 7% in early 2025. Many units are small (450-500 square feet) or have layouts that don't work well for residents. Construction costs have risen so much that "to build a unit is out of the price range of 80 per cent of the public in the Metro Vancouver area".

Developers now offer great incentives – free parking spots, storage lockers, and cash-back deals – but buyers remain cautious. My daily client interactions show that most people prefer older resale condos with bigger floor plans or are waiting for prices to drop further before buying.

The mortgage rate puzzle: what’s really driving the changes

The complex relationship between mortgage rates and Vancouver's housing market needs multiple economic factors to paint the full picture in 2025. My daily experience guiding clients through financing decisions reveals their confusion about mortgage rate movements this year. These rates often move in ways that seem to contradict general economic news. The answer lies in how central bank policies, bond markets, and lender priorities work together.

Bank of Canada's rate cuts and their timing

Bank of Canada's moves in 2025 reshaped Vancouver's housing scene dramatically. The central bank kept a restrictive policy rate of 5% through most of 2024. They started their cutting cycle in April 2025, with three consecutive 25-basis-point reductions. This brought the overnight rate to 4.25% by September. The bank made a larger-than-expected 50-basis-point cut in October, which brought the rate down to 3.75%. This signals a more aggressive approach to monetary policy easing.

Canada's economic performance sparked this quick action. GDP growth stalled to 0.9% in Q2 2025 and unemployment rose to 6.4% nationally. Vancouver's unemployment rate stands somewhat lower at 5.8%. The Bank's monetary policy report points to "weakness in the housing sector" as a reason they cut rates more aggressively than markets expected.

Vancouver homebuyers found this timing challenging. Many of my clients who put their home search on hold in late 2023 expected rates to drop substantially by early 2025. The first cut didn't happen until April. This forced many to extend their rentals or change their buying plans. Lenders responded cautiously to these changes. They reduced their prime rates by only 15-20 basis points after each 25-basis-point central bank cut. This meant they kept some savings rather than passing them to borrowers.

Bond yields and their influence on fixed rates

Fixed mortgage rates dance to a different tune—the bond market. The 5-year Government of Canada bond yield sets 5-year fixed mortgage rates. These yields took a wild ride throughout 2025. They started at 3.38%, climbed to 3.72% by March, then fell sharply to 2.91% by October after the quick Bank of Canada cuts. This explains why fixed mortgage rates didn't simply go down in a straight line.

Fixed mortgage rates sometimes moved on their own, regardless of bond yields. Major lenders raised their 5-year fixed rates by 10-15 basis points in February despite steady bond yields. They blamed "increased funding costs" and "risk premiums." The opposite happened in September. Several lenders dropped fixed rates by 30 basis points despite minor bond yield changes. This seemed more about staying competitive than actual funding costs.

Mortgage rates aren't just math based on market benchmarks. Lenders make strategic business choices that factor in competition, profit margins, and risk assessments along with funding costs. Major lenders now offer best 5-year fixed rates around 4.69%. Mortgage brokers can find special rates as low as 4.39% for qualified borrowers.

Why variable rates are behaving differently

Variable mortgage rates usually follow the Bank of Canada's policy rate closely. But 2025 brought unusual patterns. The central bank cut rates by 125 basis points since April. Despite this, the average variable rate discount from prime has gotten much smaller. Variable rates used to be prime minus 0.50-1.00% before 2022. Now they're often just prime minus 0.10-0.25%.

Lenders shrank these discounts to protect themselves from market uncertainty. They expect more rate cuts, so financial institutions keep variable rates higher than usual to protect their profits. The yield curve inversion makes things even more complex. Short-term rates now exceed long-term rates, which changes how lenders approach variable rate discounts.

Rate certainty doesn't cost much extra these days. Fixed and variable rates now differ by just 0.25-0.40%, down from the usual 0.90-1.25%. This small difference explains why 67% of new mortgage applicants in Vancouver choose fixed rates. This marks a big change from early 2022, when variable rates dominated with 75% of new mortgages.

Economists predict another 75-100 basis points in Bank of Canada cuts by mid-2026. This should pull both fixed and variable rates down gradually. Sub-3% mortgages aren't coming back anytime soon. Most forecasts suggest rates will level out around 4% for fixed terms and 3.75% for variable options through 2026.

How mortgage rates are reshaping buyer behavior

Mortgage rates do more than just influence property values—they reshape how buyers look at the Vancouver housing market. My experience as a Vancouver realtor has never seen such clear changes in buyer behavior as in 2025. These changes go beyond simple financial math and reveal deeper reactions to market uncertainty.

Buyers waiting for better deals

Vancouver house hunters now take a wait-and-see approach more than ever. Recent reports show many potential homeowners choose to stay on the sidelines because of economic uncertainty, especially with U.S. trade tensions. This careful approach continues even as things look better. Phil Soper, Royal LePage's president, points out, "Interest rates are trending lower and prices have stabilized or even softened in some markets, creating favorable conditions for long-awaited entry into homeownership, especially in costly cities like Toronto and Vancouver". Yet buyers remain careful.

The sort of thing I love is how this waiting game plays out in today's deals. Subject-to-sale offers have gone up noticeably—these are deals that only go through if buyers can sell their own homes—and this slows down overall sales. New buyers especially want to be sure before jumping in. Many build up their savings while they wait for what they think is the right time.

This careful approach has split today's market. Professional and move-up buyers stay active, while new buyers mostly watch from the sidelines. A mortgage expert noticed many clients want to wait until interest rates hit 3%—something we might not see anytime soon. This creates chances for experienced buyers who know finding the right property at the right price matters more than perfect timing.

Change toward smaller or suburban homes

Active buyers have really changed what they're looking for in today's market. Recent surveys show 60% of active buyers now look in more affordable areas than they first planned. About 40% consider smaller properties than their original plans, while 39% cut back on extra spending to save for down payments.

Families who need more space head over to places like Surrey, Langley, and Port Coquitlam, but young professionals still like Vancouver's downtown. This move to different areas comes in part from fewer people working remotely, as many buyers now want to live closer to their jobs. People also like new options like co-ownership and shared equity, with programs from Ourboro and Key making homes more available by sharing the financial load.

My clients who want to downsize have found some great opportunities in 2025. Smaller homes and condos usually cost less in utilities, property taxes, and insurance. Selling bigger properties can also free up good money for other needs.

More interest in pre-construction units

Pre-construction properties have become surprisingly popular with strategic buyers. As the market stays soft through rate increases, developers now offer great deals on pre-sale units—throwing in free parking spots, storage lockers, and cash back. Market experts say the next 3-12 months look perfect to buy pre-construction units that will be ready between 2026 and 2030.

This strategy makes sense. Buying during market dips with good incentives might let buyers complete their purchase when interest rates are lower and the market looks better. Projects finishing in 2027, like Concord Pacific's Piano development in Surrey, really catch the eye of forward-thinking buyers.

Lower mortgage rates have created an interesting split in the pre-construction market. Investors who bought pre-construction units to rent now sell more often as costs grow faster than rent income. This adds more units to the new condominium market, with listings going up as we expect record numbers of new condos to finish through 2025.

Nobody knows exactly how these changing behaviors will play out. Housing might become easier to afford than during the tough 2022-2024 period as job markets improve and incomes grow. Today's buyers face a much more complex situation than in previous years.

Affordability crisis: has anything improved in 2025?

The affordability crisis in Vancouver shows no signs of improvement in 2025, even with lower mortgage rates and more houses on the market. My daily conversations with clients about housing reveal a harsh reality - there's a huge gap between what people earn and what homes cost, and better market conditions barely make a dent in this problem.

Income vs. home price gap

Vancouver still ranks as North America's least affordable housing market with a price-to-income ratio of 13.5. A typical Vancouver home costs 13.5 times more than what the average household makes - way above expensive US cities like Los Angeles (10.7) and San Francisco (9.1). This difference has grown bigger each year. The median rent in Vancouver shot up by 143% from 2002 to 2024, while wages only grew by 93% and inflation by 58%.

These numbers paint a grim picture. British Columbia residents need to make about CAD 250,804.84 yearly to buy a typical home. The average person only makes CAD 86,388.33. This creates a gap nearly three times the size between what people earn and what they need to earn. Rising costs of everything else have pushed Vancouver's homeownership rate down to 62%, making it one of Canada's lowest.

Down payment challenges for first-time buyers

New buyers face the toughest hurdles in today's market. Metro Vancouver's average home price sits at CAD 1.59 million. Most lenders want a 20% down payment - that's about CAD 294,000. Here's some perspective: Canadians who make more than CAD 139,336.02 yearly are in the top 20% of earners nationwide. But in Vancouver, they still need to save for 15+ years just to get that down payment together.

These numbers work only in perfect conditions - steady jobs, no emergencies, no kids to support. Vancouver's high cost of living, especially rent, makes saving much harder. When people can only save 10% instead of 20% of their income, it takes almost 35 years to get a down payment. Home prices usually rise faster than savings, so the goal keeps moving further away.

BC's average housing price reached CAD 1,629,395.42 in July 2025, dropping 5.2% since July 2022. This small price drop hasn't helped new buyers much since they still face strict mortgage rules and high prices.

Rental market pressures and investor exits

Rental vacancy rates look a bit better now at 1.9% for B.C. rental apartments, breaking a three-year pattern of falling vacancies. The average asking rent across Canada dropped to its lowest point in 18 months at CAD 2,926.06, down 4.4% from last year. Vancouver apartment rents fell 5% to CAD 4,035.17, giving renters some breathing room.

The full picture tells a different story. Rents for two-bedroom occupied apartments jumped 7-17% year-over-year in Canada's biggest cities during 2025's first quarter. Vancouver tops major cities with an 18% rent-to-income ratio - a number that keeps climbing since 2020. Statistics Canada's Q1 2025 data shows Vancouver had the highest asking rent for two-bedroom apartments at CAD 4,416.95, up 27.3% from Q1 2019.

The market sees big changes as investors pull out. Statistics Canada reports 15-27% of houses and 30-42% of condo apartments were investment properties across provinces. These investors now sell their properties, with Redfin reporting the biggest drop in investor purchases in two years during Q2 2025. This investor selloff and current economic conditions create an odd situation - more rental units available but still too expensive for many people.

Regional differences across Metro Vancouver

Metro Vancouver's real estate market in 2025 shows clear geographical splits. Prices, inventory, and opportunities for buyers look quite different depending on the neighborhood. These local differences create unique situations for buyers and sellers.

Price trends in East vs. West Vancouver

East Vancouver gives buyers better value in 2025. Detached homes here cost about CAD 2.37 million, while West Vancouver homes come with a hefty price tag of CAD 4.46 million. This price difference of more than CAD 2 million stands as one of the biggest gaps we've seen. The market correction hit these areas differently this year. East Vancouver detached homes saw prices drop by 7.5% from last year, while West Vancouver prices fell even more sharply at 5.2%. Condo prices tell a similar story. East Vancouver condos now cost CAD 907,774 (a 5.0% yearly drop), which costs much less than West Vancouver's CAD 1,169,029 condos. The west side has always been pricier, but luxury areas now face steeper price drops. This is good news for buyers with deep pockets.

Inventory levels by neighborhood

October 2025 shows some interesting patterns in housing supply across Metro Vancouver. The east side has 605 detached homes and 683 townhomes and condos up for sale. The west side lists 742 detached homes and 1,004 condos and townhomes (not counting downtown). Downtown Vancouver itself has 1,114 condos and townhomes on the market. This points to too many units in the city center. Metro Vancouver's total listings reached 16,393, jumping 13.2% from last year. These numbers give buyers different bargaining power based on location.

Where buyers are finding value

Smart buyers now look to East Vancouver. Properties here cost less than Metro Vancouver's standard prices across all types. A detached home in East Vancouver saves buyers about CAD 233,109 compared to regional averages. Condo buyers save CAD 93,912. Beyond the east-west split, neighborhoods like Renfrew-Collingwood, Hastings-Sunrise, and Marpole offer good deals. East Vancouver shows stronger demand too. The area's detached homes have a 14.9% sales-to-active-listings ratio, beating Metro Vancouver's 11.3%. This suggests better market movement despite lower prices. Meanwhile, luxury areas sit in a buyer's market with sales ratios under 10%. This gives luxury property hunters room to negotiate.

What sellers need to know in a buyer’s market

Selling your home in Vancouver's buyer's market needs smart planning and realistic goals. I've helped many clients guide through changing market conditions. My experience shows that good preparation can mean the difference between a quick sale and a stagnant listing.

Timing your sale in 2025

Vancouver's housing market follows seasonal patterns even in 2025. May and June see more buyers and stronger sales volumes. The fall market gives you another chance to sell before winter slows things down. Your personal situation should drive the timing—being financially ready matters more than perfect market timing. You might want to think over waiting since economists expect rate cuts through early 2026. This could bring more buyers back to the market.

How to price competitively

The right price from day one is vital in today's market. Overpriced Vancouver homes stay on the market 48 days longer than correctly priced ones. Start with a complete comparative market analysis that looks at recent sales in your neighborhood instead of broader Metro Vancouver trends. Price your home 3-5% below recent comparable sales to attract multiple showings and offers. The first 14 days on market bring the most interest from buyers.

Why staging and incentives matter more now

Professional staging has become a must-have in a buyer's market. Set aside 0.5-1% of your listing price for staging and preparation. Smart seller incentives can separate your property from others. Cover closing costs, include appliances, or offer decorating allowances. Your home's presentation matters more than ever. Professional photos, 3D virtual tours, and video walkthroughs will help your listing stand out as buyers see more options.

Looking ahead: Vancouver housing market predictions 2026

Vancouver's housing market in 2025 shows a dramatic shift that brings new chances. Prices have adjusted across all properties since hitting record highs in 2022. This creates a buyer's market after years of tough conditions. My 20 years of helping clients in Vancouver's real estate market make this period stand out. We now see more inventory, lower prices, and better interest rates that give strategic buyers an edge.

The market still faces big affordability hurdles. Vancouver holds the title of North America's priciest housing market, with a price-to-income ratio of 13.5. Local salaries can't keep up with housing costs. First-time buyers struggle to save enough for down payments. The Bank of Canada's rate cuts have helped lower mortgage rates, but they're nowhere near the 2020-2021 lows. Many buyers now look at different areas, smaller homes, or different property types.

Metro Vancouver's regional differences grew sharper in 2025. East Vancouver gives buyers better value than western areas. The price gap between these regions has reached historic levels. Neighborhoods like Renfrew-Collingwood and Hastings-Sunrise offer great value for buyers who want to live near downtown without premium costs. High-end areas have become a buyer's market, giving well-funded buyers more room to negotiate in these sought-after locations.

Different property types tell different stories in today's market. Detached home prices have stabilized after dropping below key price points. Townhouses perform best among all housing types. They give families more space than condos at prices below detached homes. The condo market struggles with too many units. Thousands of new condos sit empty across Metro Vancouver, and developers offer big incentives to attract buyers.

Experts predict more rate cuts through 2026, but sub-3% mortgages won't return soon. Most analysts see rates settling around 4% for fixed terms and 3.75% for variable options. Buyers shouldn't wait forever for perfect conditions. Smart buyers know finding the right property at the right price matters more than getting the lowest rate.

Sellers need a solid strategy in this buyer's market. The right price from the start, professional staging, great photos, and smart incentives make a big difference. Success comes to sellers who accept market realities and set competitive prices while showing off their property's best features. Spring and fall remain the best times to sell.

Without doubt, Vancouver's housing market changes faster than ever. Some uncertainty exists, but prepared buyers who know their local markets have real chances now. This key moment rewards people who bring realistic expectations, good research, and expert help to the table. Your success in Vancouver's 2025 real estate market depends on understanding these dynamics, whether you plan to buy, sell, or explore future options.

FAQs

Q1. What is the current state of Vancouver's housing market in 2025? Vancouver's housing market in 2025 is characterized by increased inventory, moderating prices, and gradually improving interest rates. The market has shifted to favor buyers, with benchmark prices for all residential properties in Metro Vancouver at CAD 1,577,980, representing a 3.4% decrease from the previous year.

Q2. How have mortgage rates changed in Vancouver for 2025? Mortgage rates in Vancouver have decreased in 2025 due to Bank of Canada rate cuts. The best 5-year fixed rates from major lenders are around 4.69%, while mortgage brokers can access special rates as low as 4.39% for well-qualified borrowers. Variable rates have also decreased but with smaller discounts from prime than historically seen.

Q3. What are the price trends for different types of properties in Vancouver? Detached homes have seen the most significant price drops, with the benchmark price falling to CAD 2,670,235. Townhouses have been more resilient, with a benchmark price of CAD 1,486,297. Condos have experienced the most pressure, with benchmark prices falling to CAD 1,001,686 due to oversupply issues.

Q4. How has affordability changed in Vancouver's housing market? Despite falling mortgage rates and increased inventory, Vancouver's affordability crisis remains largely unresolved in 2025. The city maintains a high price-to-income ratio of 13.5, meaning a typical Vancouver home costs 13.5 times higher than the median household income. This continues to create significant barriers for many potential homebuyers.

Q5. What strategies should sellers consider in the current Vancouver market? In the current buyer's market, sellers should focus on competitive pricing, professional staging, and offering strategic incentives. It's crucial to price accurately from day one, as overpriced properties in Vancouver now sit an average of 48 days longer on the market. Investing in professional photography and virtual tours can also help a property stand out among increased inventory options.