Vancouver’s Housing Market Shows Early Signs of Stabilization
The Metro Vancouver residential real estate market has begun 2025 with notable shifts that suggest potential stabilization after the volatility experienced throughout 2024. January data indicates a measured increase in both inventory and buyer activity compared to the closing months of last year.
Market Snapshot: Key January Metrics
New listings in January increased by 15% compared to December 2024, bringing much-needed inventory to a market that has struggled with supply constraints. While still below the ten-year January average, this represents the strongest January listing activity since 2020.
The benchmark price for all residential properties in Metro Vancouver currently sits at $1,342,000, reflecting a modest 2.3% increase compared to January 2024 and a slight 0.5% decrease from December 2024. This sideways movement suggests the market may be finding equilibrium after last year’s interest rate fluctuations.
Sales volume reached 1,875 transactions in January, down 8% from the previous month but up 12% compared to January 2024. This year-over-year increase indicates stronger buyer confidence than we witnessed during the same period last year.
Neighborhood Trends: Where Buyers Are Looking
The North Shore and East Vancouver continue to see the strongest demand, with detached home sales in North Vancouver increasing 18% year-over-year. Burnaby and New Westminster have shown particular strength in the townhouse and condo segments, with townhouse prices increasing 4.1% since January 2024.
Richmond and Surrey have experienced more moderate activity, with longer average days on market but steady pricing, suggesting selective buyer interest rather than widespread demand.
Housing Type Analysis
Detached homes have shown resilience in pricing despite higher carrying costs, with the benchmark price holding steady at $2,145,000, just 0.8% below December figures. Many buyers appear to be taking advantage of slight price adjustments to enter the detached market after being priced out in previous years.
The condo market remains the most active segment, with 1,025 units changing hands in January. The benchmark price for apartments stands at $751,000, up 3.2% from January 2024. This segment continues to attract first-time buyers and investors alike.
Townhouses have seen the strongest price appreciation, with benchmark values reaching $1,120,000, representing a 4.7% year-over-year increase. Limited inventory in this category continues to drive competitive bidding in family-oriented neighborhoods.
Interest Rates and Financing
After the Bank of Canada’s recent policy adjustments, mortgage rates have stabilized somewhat, with 5-year fixed rates averaging around 5.3% from major lenders. This relative predictability has given buyers more confidence to enter the market, though financing costs remain significantly higher than pre-2022 levels.
Many buyers are exploring variable rate options again, anticipating potential rate decreases later in 2025. Mortgage pre-approvals increased 23% in January compared to December, suggesting strengthening buyer intent for spring purchases.
Foreign Buyer Impact
With recent adjustments to foreign buyer regulations, overseas investment has shown modest signs of returning to the Vancouver market, particularly in the luxury segment. Properties above $3 million saw a 15% increase in viewings according to luxury brokerages, though this has yet to translate into a proportional increase in actual transactions.
Looking Ahead: Spring Market Projections
Industry experts anticipate a more balanced spring market than we’ve seen in recent years. The sales-to-active-listings ratio currently sits at 17%, placing the market in balanced territory that favors neither buyers nor sellers decisively.
Realtors report strengthening buyer confidence, with open house attendance increasing steadily throughout January. Meanwhile, sellers appear to be setting more realistic price expectations, contributing to smoother negotiations.
“We’re seeing signs of a more rational market developing,” notes the Real Estate Board’s chief economist. “Both buyers and sellers are adjusting to current economic conditions rather than reacting to uncertainty.”
Market Factors to Watch
Several factors will influence Metro Vancouver’s housing market in the coming months:
- Potential Bank of Canada rate decisions in March and April
- Spring inventory levels and whether new listings can keep pace with buyer demand
- The impact of recently announced housing policy changes at provincial and federal levels
- Migration patterns, as Metro Vancouver continues to be a destination for both domestic and international arrivals
Conclusion
January’s data suggests Metro Vancouver’s residential market is finding its footing after a turbulent period. While affordability challenges persist, the combination of moderating prices, stabilizing interest rates, and improving inventory provides cautious optimism for balanced market conditions through early 2025.
Buyers and sellers alike would be well-advised to work closely with experienced real estate professionals to navigate this evolving landscape, as neighborhood-specific trends continue to vary significantly across the region.