2025 in review: a year of high supply, slower sales & buyer leverage

2025 will be remembered as a year of extremes in the Vancouver real estate market. Despite falling interest rates and abundant inventory, home sales dropped to their lowest level in over two decades, while listings surged to the highest total since the mid-1990s.

Buyers remained cautious throughout most of the year, influenced by global trade tensions, economic uncertainty, and shifting affordability expectations. Meanwhile, sellers continued to list at record levels, contributing to an unusually well-supplied market that favored buyers throughout all four quarters.

The result? A year of softening prices, longer time on market, and a sales-to-active listings ratio that hovered in buyer-friendly territory.

🏡 2025 Market Snapshot

• Total 2025 home sales: 23,800
  ↓ 10.4% from 2024 (26,561)
  ↓ 24.7% below 10-year average (31,625)
  📉 Lowest sales volume in over 20 years
  

• Total listings in 2025: 65,335
  ↑ 8.2% from 2024 (60,388)
  📈 Highest on record since the mid-90s
  

• Benchmark home price (Dec 2025): $1,114,800
  ↓ 4.5% YoY
  ↓ 0.8% from November
  

Despite slower conditions, the second half of the year did bring some modest improvement in buyer sentiment, especially as borrowing costs eased nearly a full percentage point. With rates more favorable and price declines tapering off, early 2026 could mark the start of a market turnaround, if demand returns.

Slower Finish Caps Off Cautious Year

The final month of 2025 closed in line with the overall tone of the year - quiet, cautious, and defined by a market still adjusting to new dynamics. Vancouver totalled 1,537 home sales in December, representing a 12.9% year-over-year decline from the 1,765 transactions recorded in December 2024. This figure also came in 20.7% below the 10-year seasonal average, reinforcing a pattern of subdued buyer activity that has persisted throughout much of the year.

On the listing side, activity remained surprisingly strong for the season. There were 1,849 newly listed detached, attached, and apartment properties added to MLS, up 10.3% compared to the same month last year, and notably above the 10-year seasonal average of 1,677. As a result, total active inventory rose to 12,550 homes on the market, a 14.6% increase year-over-year and 34.8% above the seasonal average. This continued strength in supply helped to maintain a market that remained favorable to buyers, with ample options and less competition.

The sales-to-active listings ratio across all property types landed at 12.7% for the month - just above the 12% threshold typically associated with downward pressure on prices. Detached homes showed the weakest absorption at 9.3%, while apartments and attached homes recorded slightly stronger ratios of 15.1% and 14.6% respectively. These figures suggest that while the pace of price declines may be slowing, the market remains tilted in buyers’ favour heading into the new year.

• Detached sales reached 431 in December, down 12.8% year-over-year. The benchmark price fell to $1,879,800, marking a 5.3% annual drop and a 1.1% decline from November. While detached inventory remains high, it continues to be a sought-after segment for upgraders and those looking for long-term value, especially with reduced borrowing costs.

• Attached homes saw 303 sales, a 18.3% drop from last year. The benchmark price is now $1,056,600, down 5% from December 2024. However, pricing was relatively stable month-over-month (↓0.8%), suggesting a leveling off in this segment.

• Condos had the highest transaction volume, with 791 units sold (↓11.2% YoY). The benchmark price sits at $710,000, down 5.3% from last year and 0.6% lower than November. Elevated inventory continues to offer condo buyers significant choice and leverage at the negotiation table.

View fullsize

View fullsize

View fullsize

““With lower prices, lower borrowing costs, and plenty of inventory to choose from, homebuyers in 2026 are starting the year with favorable conditions. Whether these conditions translate into a market with stronger demand will be the million-dollar question – and we’ll be monitoring this story closely as it unfolds.”

Andrew Lis, GVR Director of Economics and Data Analytics”

— Andrew Lis | REBGV Director, Economics and Data Analytics

Will Buyer-Friendly Conditions Carry Into 2026?

With inventory high, prices softer, and interest rates more favourable, the conditions at the start of 2026 are among the best buyers have seen in years. The question now is whether this environment will finally motivate pent-up demand to re-enter the market.

If buyer sentiment improves, and macroeconomic pressures continue to ease, we may begin to see more competition and firmer pricing by mid-year. For now, those ready to act early in 2026 may find themselves ahead of the curve.

If you're considering selling, reach out for a complimentary home equity health check, and take the first step to understand how much your home is really worth today.