Vancouver’s real estate market has seen significant shifts in early 2025, leaving many buyers and sellers wondering: Is it finally a buyer’s market?
With rising inventory levels, declining sales, and changing economic conditions, the latest data suggests that buyers now have more leverage than they’ve had in years. Let’s break down the numbers and explore what this means for those looking to enter the market.
Market Overview: What the Data Says
1. Rising Inventory, Slower Sales
The number of active listings in the Vancouver region has increased significantly, giving buyers more options than in previous years. At the same time, home sales have declined year-over-year, reversing the upward trend seen in late 2024.
This combination of higher inventory and lower demand has pushed the market into a more buyer-friendly position, particularly in certain sub-markets.
2. Sales-to-Listings Ratio Confirms a Buyer's Market
One of the best ways to measure market conditions is the sales-to-listings ratio:
Below 12% = Buyer’s Market
12%–20% = Balanced Market
Above 20% = Seller’s Market
Recent data shows:
Detached Homes: 10% (Buyer's Market)
Townhomes: 19% (Balanced Market)
Condos: 16% (Balanced Market)
While townhomes and condos remain in a balanced market, detached homes have clearly entered buyer’s market territory—indicating more negotiating power for those looking to purchase single-family homes.
3. Home Prices Are Stabilizing, With Some Declines
Price trends further support the shift:
Detached homes’ median price has seen a modest decline year-over-year.
Townhomes are also seeing slight price reductions.
Condos have remained relatively stable, with minor increases in some areas.
With more options and less competition, buyers are regaining the ability to negotiate prices and conditions, particularly in the detached home segment.
Why Is Vancouver Becoming a Buyer’s Market?
Several key factors are contributing to this shift:
1. Rising Interest Rates & Economic Uncertainty
Despite some recent rate cuts, the Bank of Canada’s monetary policy remains tight, impacting affordability. Combined with ongoing economic uncertainty, many potential buyers are waiting on the sidelines, further slowing demand.
2. Surge in New Listings
Homeowners who were previously reluctant to sell have re-entered the market, increasing inventory. Investors and sellers adjusting to the market downturn are also listing more properties, creating greater supply.
3. Foreign Buyer Restrictions & Market Cooling Measures
Government policies, including foreign buyer bans and additional taxes, have continued to dampen investor activity, especially in the luxury and pre-construction segments.
What Does This Mean for Buyers?
If you’re a buyer, the current market presents a major opportunity:
✅ More Choices – With inventory higher than historical averages, buyers have more properties to choose from.
✅ Negotiation Power – Sellers are more willing to accept lower offers, cover closing costs, or offer incentives.
✅ Better Conditions – Buyers may be able to negotiate for longer closing periods, inspections, or financing contingencies, which were difficult during the peak market.
However, buyers should still be strategic and consider:
Interest rates: While rate cuts could improve affordability, waiting too long might mean losing out on current inventory.
Local demand shifts: Certain neighborhoods and property types (e.g., condos) may still see competition.
What About Sellers?
For sellers, pricing aggressively and marketing strategically will be key. Homes that are well-priced and well-presented will still sell, but sellers should be prepared for:
❌ Longer time on market
❌ More negotiations on price and conditions
❌ Increased competition from other listings
For those looking to sell quickly, working with an experienced agent who understands the latest market dynamics will be essential.
Conclusion: Is 2025 the Time to Buy?
Yes—if you’re looking to buy in Vancouver, 2025 is shaping up to be one of the best opportunities in years. With high inventory, price flexibility, and lower competition, the conditions favor buyers—especially in the detached home market.
However, the window of opportunity may narrow if interest rates drop or demand rebounds in the spring and summer months. Serious buyers should act now while market conditions are still in their favor.