^InsightsVancouver Real Estate Update: March 2025

Vancouver’s housing market continued to cool in March, with seasonally adjusted home sales falling 7.3% from February. This marks the fourth consecutive monthly decline and places overall sales 26.6% below their recent peak in November 2024. The uncertainty tied to American tariff threats continues to dampen consumer confidence, with many potential buyers taking a wait-and-see approach before making large financial decisions.

Market Conditions Shift in Favour of Buyers

While demand has softened, inventory is rising. New listings increased 3.5% in March, rebounding slightly from the 17.3% decline in February. Combined with the low level of sales, active listings increased by 6.3% from February to March, the fifth consecutive monthly advance as they reached their highest level since December 2020. As a result, the sales-to-active listings ratio has continued to trend downward, pushing the market further into “buyer’s market” territory.

On a year-over-year basis, March home sales dropped 12.8%. Detached homes led the decline (-24.1%), followed by condos (-10.2%) and attached properties (-4.6%). Overall, monthly sales were 36.8% below the 10-year average for March, signaling a significant slowdown in activity compared to historical norms. Meanwhile, active listings surged 37.9% year-over-year, adding to buyer options and negotiating power.

Price Trends Remain Stable

According to the Teranet–National Bank House Price Index, Vancouver home prices remained flat from February to March, holding steady amid broader volatility across Canadian markets. While cities like Victoria saw a 2.2% price increase, Vancouver’s price stability suggests the market is adjusting more gradually to shifting conditions. This stability may provide a foundation for cautious optimism as interest rate cuts by the Bank of Canada begin to filter through the economy.

Housing Starts and Construction Activity

Housing starts in Vancouver edged up slightly by 0.4K to an annualized rate of 17.6K in March. Across the province, BC saw a gain of 1.6K, bringing total housing starts to 29.2K units. This rise comes despite a broader national slowdown, largely driven by a significant drop in Ontario (-17.9K to 38.6K). While March marked the second consecutive monthly decline in total Canadian housing starts, down 3%, the uptick in BC—particularly in multi-unit developments—suggests continued underlying strength in the region.

Encouragingly, building permit levels remain elevated in BC, indicating that construction activity should stay relatively robust in the months ahead, barring any major shifts in economic conditions or labour market stability.

Outlook

The combination of rising supply, falling sales, and stable prices points to a market that’s currently rebalancing. Buyers have more negotiating power than they’ve had in years, and sellers may need to adjust expectations in the near term. While the tariff uncertainty remains a headwind, softer interest rates and resilient employment numbers could help reenergize activity later this year.