Market Update May 12, 2025

Economic uncertainty has significantly impacted the housing market in BC's Lower Mainland leading to a notable decline in both home sales and prices throughout the month of April.

This downturn has further entrenched the market in a state favorable to buyers, as conditions shift away from the previous seller-dominated landscape. According to data gathered from local real estate boards, including those covering Metro Vancouver, Abbotsford-Mission, and the Sea-to-Sky corridor, home sales in this expansive region totaled 3,136 units during April. This figure represents a staggering 26 percent decrease compared to the same month in the previous year. In contrast, the region experienced a 17.6 percent decline in home sales in March, indicating a worsening trend. Notably, this April's sales figures marked the lowest level of transactions recorded for this month since 2020, which coincided with the initial and most severe impacts of the COVID-19 pandemic.

Analyzing the data reveals that this marks the fifth consecutive month of decline in seasonally-adjusted sales, which fell by 7.9 percent. This trend is particularly concerning as it indicates a sustained cooling of the market, even when compared to the trough experienced in 2022, a period characterized by soaring interest rates that significantly cooled demand for housing. Despite recent reductions in interest rates and some modest improvements in affordability, coupled with federal initiatives aimed at enhancing access to mortgage financing in higher-priced markets, the declining sales figures are largely reflective of the prevailing economic uncertainties, particularly those associated with tariffs.

While it is important to note that the Lower Mainland is somewhat insulated from the impacts of U.S. tariffs compared to other regions in Canada, due to its unique industry composition and diverse trade partnerships, the region's exorbitantly high property prices create a fragile environment. Even a minimal risk of recession or a downturn in the job market can have a pronounced effect, causing potential buyers to remain cautious and hesitant, thus keeping many of them on the sidelines of the market.

As a result of the sharply lower sales figures, a buyers' market has emerged, characterized by an oversupply of housing options. Although the number of new listings has begun to ease, it remains elevated, contributing to a growing pool of stale listings already languishing on the market. The total number of active listings has surged to nearly 25,000 units, reaching the highest levels

Economic uncertainty has had a profound effect on the housing market in British Columbia's Lower Mainland, resulting in a significant drop in both home sales and prices during April. This shift has created a market more favorable to buyers, moving away from the previously seller-driven environment. Data from local real estate boards, including those for Metro Vancouver, Abbotsford-Mission, and the Sea-to-Sky corridor, indicates that home sales in this broad area reached 3,136 units in April. This marks an alarming 26 percent decline compared to the same month last year. In March, home sales had already decreased by 17.6 percent, suggesting a worsening trend. Notably, the sales figures for April represent the lowest number of transactions recorded for this month since 2020, a time that coincided with the initial and most severe impacts of the COVID-19 pandemic.

Upon closer examination, it becomes evident that this is the fifth consecutive month of decline in seasonally-adjusted sales, which have fallen by 7.9 percent. This ongoing trend is particularly troubling as it indicates a prolonged cooling of the market, even when compared to the low points of 2022, a year marked by soaring interest rates that significantly dampened housing demand. Despite recent reductions in interest rates and some modest improvements in affordability, as well as federal efforts to enhance access to mortgage financing in high-priced markets, the declining sales figures largely reflect the ongoing economic uncertainties, particularly those related to tariffs.

It is important to recognize that while the Lower Mainland is somewhat shielded from the effects of U.S. tariffs compared to other regions in Canada—thanks to its unique industry structure and diverse trade partnerships—the area’s extremely high property prices create a precarious situation. Even a slight risk of recession or a downturn in the job market can have a significant impact, leading potential buyers to be cautious and hesitant, which keeps many of them out of the market.

As a result of the sharply reduced sales figures, a buyers’ market has emerged, characterized by an oversupply of housing options. Although the number of new listings has started to decrease, it remains high, contributing to a growing number of stale listings already on the market. The total number of active listings has surged to nearly 25,000 units, the highest level seen in over a decade. This influx of available properties has exerted downward pressure on prices, which have declined. The average price of homes in the region has fallen by 6.1 percent year-over-year, settling at around $1.148 million. On a seasonally-adjusted basis, prices have dropped by 2.7 percent compared to March, continuing a downward trend that began in January.

Similarly, benchmark prices—adjusted for variations in unit types and geographic distribution—have also seen declines, falling 1.5 percent month-over-month and registering a 2.1 percent decrease year-over-year. The price reductions have been particularly significant in the multi-family housing segment over the past year, reflecting an oversupply in this category. As the market continues to adapt to these new economic realities, the balance between supply and demand will be vital in shaping future trends in home sales and pricing in the Lower Mainland.

observed in over a decade. This influx of available properties has put downward pressure on prices, which have seen a decline. The average price of homes in the region has dropped by 6.1 percent year-over-year, settling at approximately $1.148 million. On a seasonally-adjusted basis, prices have decreased by 2.7 percent compared to March, continuing a downward trajectory that began in January.

Similarly, benchmark prices—which account for variations in unit types and geographic distribution—have also experienced declines, falling 1.5 percent month-over-month and registering a 2.1 percent decrease year-over-year. The price reductions have been particularly pronounced in the multi-family housing segment over the past year, reflecting an oversupply in this category. As the market continues to adjust to these new economic realities, the interplay between supply and demand will be crucial in determining future trends in home sales and pricing in the Lower Mainland.