Market Confidence Slowly Rebuilding Across Metro Vancouver

Recent reports from local real estate boards show that housing activity across Canada — and here at home in Metro Vancouver — continues to gain momentum. After bottoming out in April, home sales have now risen for five consecutive months, signaling that confidence is slowly returning to the market.

Still, real estate remains highly localized. While national trends provide useful context, the pace of recovery varies greatly from one region to another.

Here in Metro Vancouver, conditions remain somewhat soft but stable. Sales activity has picked up modestly through the summer, though price adjustments continue in many areas as higher inventory levels give buyers more options. August data from the MLS® Home Price Index show values edging slightly lower across Greater Vancouver and the Fraser Valley, consistent with what we’ve seen in other large markets like Toronto, Hamilton, Calgary, and Edmonton.

The slowdown has been most pronounced in the condo segment, where price declines have outpaced those of detached and townhome properties. Many buyers remain on the sidelines, waiting for greater clarity around interest rates and pricing trends. However, recent rate cuts and easing inflation are starting to shift the tone of the market.

In September, the Bank of Canada reduced its policy rate by 25 basis points to 2.5%, marking the third cut since the cycle began. Additional reductions are expected before year’s end, which could help bring more buyers back into the market through the fall and winter.

While prices have softened, this has also opened up opportunities — particularly for move-up buyers and downsizers — who now have more selection and negotiating power than they’ve seen in several years. Detached homes, in particular, are showing resilience as motivated sellers adjust to current market realities and buyers take advantage of lower borrowing costs.

Across Metro Vancouver, the composite MLS® HPI remains down slightly year-over-year, but month-over-month declines have been moderate, suggesting the market is finding its footing. Some neighbourhoods, especially in the Tri-Cities, are seeing balanced conditions that could lead to gradual price stabilization later this year.

Nationally, economic headwinds remain a factor. Canada’s economy contracted by 1.6% in the second quarter, and the jobless rate has risen to 7.1%. However, inflation continues to cool, with the Bank of Canada’s core measures easing to an average of 3.05% and shelter inflation dropping to 2.6%. These trends suggest further rate relief may be on the horizon.

Overall, Metro Vancouver’s housing market appears to be entering a period of cautious recovery. Falling rates, softening prices, and healthy inventory are creating a more balanced environment for buyers and sellers alike. As confidence rebuilds through the second half of 2025, we could see stronger demand take hold in 2026 — especially as affordability gradually improves and pent-up demand begins to flow back into the market.