Hello everyone. As someone who has been deeply involved in the Vancouver real estate market (both residential and commercial), I wanted to share my perspective on what I’m seeing as of May 2025.
The market’s taken a lukewarm turn, and it’s a far cry from the feeding frenzy of a few years back. We’ll review the current status of homes (by neighbourhood and property type) and delve into commercial areas, including offices and warehouses. I’ll share some real-life anecdotes, debunk a few myths, and give you a sense of the current sentiments among buyers and sellers.
If you want to chat about the May 2025 Real Estate market report, then reach out to Realtor Jova Xu at the contact info below:
Residential Real Estate Is Cooling Off but Not Crashing
Sales activity has slowed significantly. Only about 2,228 homes sold in Metro Vancouver in May, which is 18.5% fewer sales than the same time last year. It’s eerily quiet for what should be peak spring season.
Sales are 30% below the 10-year average for May, meaning this spring is unusually slow. At the same time, listings have piled up. We’re sitting on roughly 17,000 active listings, a 10-year high for inventory. I’m seeing “For Sale” signs lingering longer in every neighbourhood, from Kitsilano to suburban Coquitlam. One couple on my street listed their East Vancouver house in March, expecting the usual spring rush, but only a trickle of buyers came through.
They eventually pulled the listing to “wait for a better market,” a story I hear a lot lately. With more homes to choose from and fewer deals closing, power is shifting in favour of buyers. The sales-to-active listings ratio is about 13% (just above the classic buyer’s market threshold of 12%), and for detached houses it’s a low 10%. Prices have felt some downward pressure after years of climbing.
The benchmark home price across Vancouver is approximately $1.177 million, down about 2.9% from a year ago. We’re not talking a crash by any stretch, but a modest roll-back of prices that some honestly find refreshing in this overheated city.
Detached Houses (Westside vs Eastside)
High-end detached homes have taken a hit more than entry-level ones. If you look at Vancouver’s posh West Side, like Point Grey, Shaughnessy, Kerrisdale, those luxury house prices are down around 5% year-over-year on average. I’ve noticed some Westside mansions sitting for months, undergoing multiple price cuts. One Dunbar listing was originally priced at $4.5 million, but is now at $4.1 million with still no takers.
Buyers in that segment are extremely picky right now. Compare that with East Vancouver, where detached benchmarks are lower (around $1.8M) and have declined by only 2–3% in the past year. An East Vancouver fixer-upper under $1.5 million, if you can find one, will still draw out young families and contractors hunting for “deals.” I saw an old character house near Main Street listed at $1.3 million that attracted a small bidding war (nothing crazy, just two offers) because it was one of the cheapest in town.
It sold just over the asking price, whereas a similar-tier Westside house might not receive a single bid unless it were priced very sharply. The detached market, located farther out in the suburbs (such as Maple Ridge and Pitt Meadows), also has pockets of activity, as prices there are more affordable for locals.
However, overall, with detached sales down ~23% from last May, it’s clear that many potential house buyers are holding off, possibly waiting for prices to soften further or interest rates to drop. Sellers of houses are grudgingly adjusting – I’ve seen more listings advertise “price improved” (realtor speak for price cut) this spring than in the past few years combined.
Townhouses (the In-Between Favourite)
Townhomes have been more resilient. These are gold for families who can’t afford a house but outgrow a condo, and since Vancouver proper has a limited supply of townhouses, demand is holding steady.
Townhouses saw the smallest sales drop among property types (only about a 10% decline in sales year-over-year). Prices for townhomes are down around 3–4% from last year in general, according to, but I’ve noticed that well-priced townhouses in trendy, family-friendly areas (such as Mount Pleasant or parts of North Vancouver) still receive action. A friend of mine was selling a three-bedroom townhouse in Burnaby, listed at $980,000, and within two weeks, he received two competing offers (nothing as extreme as 10 offers, but still competitive). He ended up accepting approximately $15,000 below the asking price, with a few conditions.
That kind of sane negotiation was almost unheard of during the 2021 frenzy, but it’s the norm now. Buyers actually get to inspect the home, review strata minutes, and negotiate minor repairs, all that reasonable due diligence that was often skipped when everyone was frantic.
Townhouse inventory is up slightly, providing buyers with more options. I’ve also heard of some new townhouse developments offering incentives (covering closing costs, throwing in upgrades) to entice buyers, which was rare when everything would sell out pre-construction.
Condo Apartments (Downtown and Beyond)
The condo market is a mixed bag, depending on location and age of the building. Overall, condo sales are down nearly 19% from last year, and the benchmark condo price (~$757k) is about 2.4% lower year-over-year. Yes, condos have seen a slight decline in value. Downtown Vancouver condos, especially luxury units (such as those in Coal Harbour or brand-new high-rises), are struggling unless priced very aggressively.
Investors are now much more cautious. Many of them are sitting out because, with high interest rates, renting out a condo might not even cover the mortgage. A friend of mine has a Yaletown investment condo, and his variable mortgage has increased to the point that he’s losing money each month, despite record-high rents.
He would sell, but the offers he’s getting are below what he paid in 2022, so he’s torn. This kind of dilemma is playing out for many small landlords. On the other hand, more affordable condos in transit-friendly suburbs (Burnaby, New West, Surrey) still see interest from first-time buyers.
Young buyers who can’t touch a house are cautiously coming into the condo market, but they’re stretching their budgets. For example, I know a couple who recently bought a one-bedroom unit in an older East Vancouver low-rise for approximately $525,000. They lost out on two bids for newer downtown condos and decided to opt for more space in an older building further out. They’re happy, but the process has made them realize how competitive even the starter condo segment can be if it’s priced under a certain point.
One pattern I’ve noticed is that older condos with issues (such as a leaky condo history or looming big repair bills) are sitting unsold for longer. Buyers are spooked by any potential extra costs (nobody wants a surprise $100k special levy right now). In a hot market, people often overlook these red flags; now they walk away or demand a significant discount.
Neighbourhood Highlights
In Vancouver East, prices have softened, but it remains one of the more active areas; the lower price points keep it vibrant. In Vancouver’s West End, the luxury detached segment is experiencing a slowdown. Only ~53 Westside houses sold in May, representing a 45% drop from the previous year in that sub-market, as reported by a brokerage.
North Vancouver and Burnaby
These areas saw decent townhouse and house activity earlier in the year, but even there, I hear open houses are quieter now than they were in 2024.
Across the board, if a property is unique or turnkey, it still sells. For example, a beautifully renovated heritage house or a rare penthouse with a view; however, anything average must be priced correctly. Buyers currently have zero tolerance for overpricing. As one Realtor friend told me, “If it’s not the best-looking listing in its category, it’s not moving.”
New Construction and Presales
A surprising pain point in 2025 is the new condo presale market. During the boom times, everyone assumed that presale condos would only increase in value by the time of completion. Not so much now. We’re actually seeing a glut of newly built condos that haven’t sold by the time the building is finished. Roughly 2,179 brand-new condo units were sitting unsold at the end of 2024, and that unsold inventory is forecast to swell by about 60% to around 3,500 units by the end of 2025.
That’s the highest in years. It’s a weird sight… Shiny new condo towers with “Move-in Ready!” banners because developers couldn’t sell out in advance. I’ve walked through some of these buildings where the sales team is practically begging for buyers, offering discounts, financing help, and more. Many investors pulled back (since rents won’t cover costs easily), so those projects lost a significant portion of their buyer pool.
Some presale buyers who bought at the 2021 peak are now seeing appraisals come in lower than what they agreed to pay. I’ve heard that it’s 5–20% lower in some cases, a nightmare scenario for those who stretched to buy a pre-construction unit expecting easy equity. We’re even seeing assignments (people trying to flip their presale contract) listed at or below the original price. And a few projects have had to cancel or let buyers back out because they couldn’t sell enough units within the mandated timeframe.
It’s something I always warn newbie investors now. Don’t assume new builds are a guaranteed win. This oversupply of new condos will likely put a bit more downward pressure on condo prices overall, especially in areas with lots of development (Brentwood, Oakridge, Surrey City Centre, etc.).
Why the Cooldown?
A combination of factors is keeping buyers on the sidelines. Interest rates remain high, despite the Bank of Canada easing its hikes and even cutting rates slightly in late 2024. Mortgages are still hovering around 5 %+ for fixed terms, meaning buyers have to pass the stress test at ~7%. The result is that people can’t borrow as much, or the monthly payments are giving them sticker shock. Additionally, there is a general sense of economic uncertainty.
According to word on the street (and formal surveys), many Vancouverites are concerned about the economy and job market. Half of residents say they’re not confident in the Canadian economy right now, according to a Royal LePage survey. We’ve got a mix of inflation worries, talk of a trade tariff spat with the United States, and we just came out of a federal election this spring (which always puts big purchases on hold for some people).
Randy Ryalls, a local brokerage manager, called the spring market “just lukewarm”. That pretty much sums it up. In my experience, buyer psychology is a significant factor. After years of FOMO, there’s now a sense of “maybe I’ll wait and see.” Everyone’s trying to time the market bottom. It’s almost impossible to do. On the other hand, many sellers are also hesitant. If you have a low-interest rate on your current home, you’re not eager to sell and then buy something else with a higher loan rate.
The “lock-in effect” means fewer move-up sellers listing, which would actually constrain supply… If it weren’t for other individuals needing to sell (relocations, divorces, investors offloading, etc.), which contribute to the inventory pile-up. It’s a bit of a stalemate in some segments: buyers don’t want to overpay, sellers don’t want to undersell, so not much happens until someone blinks.
-Alistair Vigier, real estate investor