2025 Greater Vancouver Real Estate Market Review
A Year for the Record Books — and a Turning Point Ahead
2025 will be remembered as one of the most unusual and challenging years the Greater Vancouver real estate market has experienced in decades. Not because of a sudden crash or economic crisis — but because of a prolonged slowdown shaped by uncertainty, psychology, and a historic imbalance between supply and demand.
By nearly every major metric, 2025 rewrote the record books.
•••
Sales: A 20-Year Low
Home sales across Metro Vancouver fell to their lowest annual total in more than two decades. According to the Greater Vancouver REALTORS® (GVR), 23,800 residential properties sold in 2025, representing:
- A 10.4% decline from 2024
- A 9.3% drop from 2023
- Nearly 25% below the 10-year annual sales average
GVR Chief Economist Andrew Lis described the year plainly:
“This year was one for the history books,” Lis said, pointing to the rare combination of historically low sales alongside record-setting listing activity.
What makes 2025 particularly notable is that this slowdown wasn’t driven by mass job losses or a financial crisis — factors that typically explain major market pullbacks.
“In other times when home sales have slowed, there’s usually been some fairly obvious economic reason,” Lis explained. “This time around, the factors were less obvious. A lot of it appears to have been psychological.”
Listings: Sellers Showed Up — In Force
While buyers hesitated, sellers did the opposite.
In 2025, 65,335 properties were listed on MLS®, making it the highest annual listing total since the mid-1990s, surpassing even the peak of 2008. That figure represents:
- An 8.2% increase over 2024
- A 28.4% increase over 2023
- 13% above the 10-year annual average
Lis summed up the contradiction succinctly:
“While sales weren’t as high as expected, there was no shortage of sellers coming to market. It was a very active sell side.”
That imbalance defined the year: more choice than buyers had seen in years — but fewer buyers willing to act.
•••
Inventory: Elevated — and Still Growing
By year-end, Metro Vancouver entered 2026 with 12,550 active listings, which is:
- 14.6% higher than December 2024
- Nearly 35% above the 10-year seasonal average
This level of inventory fundamentally shifted market dynamics. Buyers gained leverage. Sellers faced longer timelines, more competition, and increased pressure to price strategically.
Prices: A Controlled Pullback, Not a Collapse
With sales down and inventory elevated, prices eased — but gradually.
The MLS® Home Price Index benchmark for all residential properties ended the year at $1,114,800, reflecting:
- A 4.5% decline year-over-year
- A modest 0.8% dip month-over-month heading into December
Importantly, price movements in the second half of 2025 became more stable, shifting sideways rather than continuing to slide.
Lis noted this nuance:
“Over the past few months, prices have been steadier — moving more sideways than sharply up or down. If that continues, it may signal a bottom to some buyers.”
Borrowing Costs: Quietly Improving Conditions
While sales and prices softened, one key factor moved in buyers’ favour: borrowing costs.
Over the course of 2025, interest rates fell by nearly a full percentage point, quietly improving affordability — even as buyer confidence lagged behind.
Lis emphasized the setup heading into 2026:
“With lower prices, lower borrowing costs, and plenty of inventory, homebuyers are starting the year with favourable conditions.”
Whether buyers act on those conditions remains the open question.
•••
The Missing Buyer: Psychology Over Economics
One of the defining themes of 2025 was buyer hesitation rooted in uncertainty, not financial distress.
Trade tensions with the United States, lingering affordability concerns, and fear of further price declines kept many buyers on the sidelines — particularly in markets like Metro Vancouver that saw rapid price growth over the past decade.
“It seems that in markets with the fastest price growth over the last 10 years, we’re seeing the slowest sales now,” Lis observed.
At the same time, speculative demand — once a significant driver in higher-priced markets — was largely absent.
As one local agent told Postmedia, today’s buyers are asking a different question than they did in past cycles:
“Everybody’s apprehensive. They’re asking, ‘What kind of return can I expect?’ And the truth is — nobody has a crystal ball.”
Looking Ahead to 2026: Pressure Building Beneath the Surface
Despite the slowdown, most economists — including Lis — do not expect today’s conditions to persist indefinitely.
Life events don’t pause forever. Jobs change. Families grow. People downsize, upsize, and relocate.
“At a certain point, I do expect that pressure from the buy side to release,” Lis said. “A lot of people who delayed decisions in 2025 will eventually choose to make them.”
Lis estimates sales in 2026 could rebound toward 26,000–28,000 transactions, with 30,000 representing a strong year — still below historical highs, but a meaningful recovery from 2025’s trough.
2025 in Review — Key Takeaways
- A Historic Slowdown, Not a Breakdown
2025 marked the lowest annual sales total in over two decades, but the market did not collapse. Instead, it paused. Activity slowed while fundamentals reset, creating a market defined more by hesitation than distress. - Inventory Surged, Power Shifted
Sellers brought record levels of supply to market, pushing inventory well above historical norms. With more choice than buyers have seen in years, leverage shifted decisively toward the buy side. - Prices Adjusted, Not Cratered
Home prices eased across all property types as competition increased, but declines remained measured. The market re-priced to meet reality rather than spiraling downward. - Confidence Lagged Behind Opportunity
Lower borrowing costs, softer pricing, and abundant inventory created favorable conditions — yet uncertainty and psychological hesitation kept many buyers on the sidelines. - Sellers Were Forced to Adapt
With demand selective and competition fierce, pricing and presentation mattered more than ever. Homes that adjusted expectations and stood out continued to sell; others waited. - The Foundation for 2026 Is Set
By year’s end, leverage had changed hands, conditions quietly improved, and delayed life decisions continued to build pressure beneath the surface. - The Big Question Moving Forward
The market isn’t asking if activity returns — but when, and how quickly confidence catches up to improving fundamentals.
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