Looking to buy or sell in 2025? Here's what you need to know.

As we move further into 2025, the Greater Vancouver housing market is gaining momentum. Industry forecasts predict rising home prices and increased sales activity, signaling a potential shift toward a stronger seller’s market. Whether you're buying or selling, it’s important to stay informed about these changes....so let’s break it down!

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 General Market Forecast: What to Expect in 2025

1. Home Prices on the Rise – Experts predict a steady increase in home values across the region.
2.  Sales Surge Expected – More buyers are returning to the market, fueling higher demand.

 Price & Sales Projections

1.  Royal LePage forecasts a 4% price increase. This would bring the average home price in Greater Vancouver to $1,271,712 by late 2025.
2.  Re/Max Canada expects home prices to increase by 7%. Coupled with sales volume jumping a whomping 20%.
3. More first-time buyers and investors are expected to enter the market, further boosting activity.

If these projections hold, waiting could cost buyers more, and while prices will increase for sellers they may benefit from listing before the soring rush increases their competition.

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What’s Driving This Market Surge?

Several key factors are fueling this growth:

1. Lower Borrowing Costs – The Bank of Canada has now reduced the interest rate six consecutive times, and with another announcement coming March 12th buyers are breathing a sigh of relief. The bottom line...more affordable mortgages will bring more buyers into the market.
2.  Pent-Up Demand – Many people postponed buying due to economic uncertainty throughout 2023 & 2024. But life can only wait for so long...and now that they are jumping back in, competition is returning to the market.
3.  Population Growth – Immigration & interprovincial migration are increasing demand for homes, particularly in family-friendly neighborhoods.

Three key factors pushing the market forward—meaning if you’re planning to buy or sell, timing is key! 

Reach out today for guidance

Affordability Challenges: What Buyers Need to Know

While the outlook is positive for sellers...they like to see rising price...affordability remains a major hurdle for many buyers.

•  Experts suggest that in order to make housing more affordable:

1. Prices would need to drop by at least 10% 
2. Mortgage rates would need to fall significantly back towards 2021's record lows. 

 Since the above is unfortunately unrealistic, the government has introduced a handful of measures aimed at assisting buyers. One such tool is extended amortizations for first-time buyers, extending the traditional mortgage from 20-25 years to 30-35 years. While this may offer short-term relief and allow buyers to enter the market—it does also hold the potential to increase demand and drive prices even higher...effectively negating any benefit it would have generated.

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What Does This Mean for Buyers & Sellers?

The 2025 Greater Vancouver real estate market presents both opportunities and challenges depending on whether you're buying or selling.

Here’s what you need to know to make the best move:

For Buyers: Act Sooner to Maximize Your Advantage

If you’re thinking about buying a home this year, timing could be crucial. With experts predicting a 4-7% price increase by the end of 2025, and borrowing costs expected to gradually decline...price increases could easily outstrip mortgage rate secreases. This means jumping into the market sooner rather than later could save you money.

Here’s why:

1.  Prices Are Rising – Waiting may mean paying thousands more for the same home. A 4-7% increase on a $1M home equals an extra $40,000 to $70,000 by year’s end. Whether prices jump up at the first sign of spring or edge up slowly remains to be seen, but the year has begun with a higher sales volume than normal.
2.  Interest Rate Cuts Are Coming – Althought the Bank of Canada is expected to continue to gradually lower rates, there is still the potential to buy now and refinance later at a lower rate when the cuts take effect.
3.  More Competition Ahead – With pent-up demand from buyers who postponed their home search, the market is getting busier. More competition means homes will remain on the market for shorter periods of time, and there is potential for multiple offers and bidding wars to return. Both of these factors remain doubly important for properties traditionally viewed as desirable.

 What You Can Do Now:

1.  Get pre-approved for a mortgage so you're ready to act fast when you find the right home.
2.  Work with a knowledgeable real estate team (that’s us!) to stay ahead of market trends.
3.  Consider up-and-coming neighborhoods where price growth may be stronger in the long term.
4.  If affordability is a concern, explore alternative financing options like longer amortizations or government assistance programs. A reliable mortgage broker is key here, but don't worry, we can help!

For Sellers: A Prime Opportunity to Maximize Your Sale

If you’ve been considering selling your home, this year presents an ideal window of opportunity. Why? Because demand is rising, inventory is still tight, and prices are climbing—creating conditions for strong offers and fast sales.

1.  High Demand, Low Supply – With more buyers entering the market and housing supply still limited, well-priced homes are expected to sell quickly—often, with multiple offers. But as sellers waiting on the bench begin to see homes around them sell in multiples they will begin to list and supply will potentially spike.
2. Stronger Offers & Potential Bidding Wars – A competitive market means buyers may be willing to pay a premium to secure the right home. This puts sellers in a strong negotiating position. Currently you hold the majortiy of the cards.
3.  Maximize Your Home’s Value – Small updates can make a big difference in attracting top-dollar offers. As just one of our services, our team provides complimentary staging advice to help your home shine! Reach out today for other options on how to stand out.

 What You Can Do Now:

1. List sooner rather than later to take advantage of rising demand and lower supply.
2. Prepare your home—declutter, make small repairs, and showcase its best features with professional marketing (our marketing package is second-to-none)
3. Work with an experienced team (*waves* that’s us!) to develop a strategic plan for maximum exposure.
4. Plan your next move in advance—whether upgrading, downsizing, or relocating...no one wants to feel a time crunch once the process starts. Don't worry, we’ll help you navigate the transition smoothly regardless of your destination.

The Bottom Line: Timing is Everything!

1. If you’re buying, acting sooner could mean lower prices and less competition.
2. If you’re selling, listing now could help you maximize your sale price before the market shifts.

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Have Questions? Let’s Talk!

1. How will these trends impact your specific real estate goals?
2. Which neighborhoods are expected to appreciate the most? 
3. What strategies can you use to navigate these shifting conditions? 

We’re here to help you make informed real estate decisions in 2025

Reach out anytime for expert guidance tailored to you!

R3 Hayes Real Estate Group – Your Neighbourhood Experts

  Call/Text: 604-561-2127
  Email: [email protected]
  Visit: RodRheaRyan.com

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