The average residential sale price in Vancouver has decreased by 3.8 per cent across all property types between 2024 and 2025 from $1,292,585 to $1,243,360. The number of sales transactions decreased by 9.4 per cent for the same time period (from 22,440 to 20,332). The total number of listings increased by 23 per cent (from 12,805 in 2024 to 15,790 in 2025). Average residential sale prices will experience a continuingmodest decline. Though the decline in the next couple of months will be minimal, expect to see a further decline of one to three per cent by the third month. Sales will increasedecrease by four per cent going into 2026, compared to 2025.
Trends in the Vancouver Housing Market
Looking ahead to 2026, Vancouver is expected to range from a buyers' market to a balanced market, depending on the type of property. Entry-level and lower-priced homes Entry-level, lower-priced and homes with suites remain in strong demand, favouring sellers, while higher-end and luxury properties see more inventory relative to buyers, giving them an advantage. Market conditions will vary by segment, reflecting differences in affordability, demand, and available inventory. Single detached homes are expected to drive the strongest demand and sales activity in the region in 2026.
Looking ahead to 2026, several distinct buying and selling trends are emerging across the housing market. First-time homebuyers are focused on value and the long-term benefits of homeownership, with location playing a key role—particularly proximity to public transit. The most common price range for this segment is $500,000 to $700,000. Move-up and move-over buyers are increasingly relying on subject-to-sale offers, allowing them to secure a new home without the risk of being unable to sell their current property in a slower market. Many are benefiting from a favorable price gap, selling homes around $800,000 plus and purchasing properties in the $1,300,000 to $1,500,000 range, leveraging better financial conditions than during the market peak.
Retirees continue to prioritize single-level living, and many are now open to townhome or strata-style options. Concerns about selling their current home, informed by past experiences such as the 1980s interest rate crisis, are shaping their purchasing decisions. Typically, retirees are selling properties for around $1,500,000 or more, buying in the $800,000 to $1,000,000 range.
In terms of new-home construction, most projects already underway are proceeding, but few new developments are entering the market as many builders adopt a cautious "wait and see" approach. Active developers are offering heavy promotions and potential GST exemptions, a strategy that carries some risk if the federal program does not proceed as anticipated. Additionally, several projects have faced receivership due to higher interest rate costs during development, compounded by local red tape and high approval costs. When the market is not particularly strong, these factors make it challenging for developers to profitably purchase land at peak prices and sell finished homes at similar levels, slowing overall new construction activity.
Currently, the market remains cautious, with many consumers hesitant to buy amid fears of further declines. While a short-term rebound is possible, it is not guaranteedstill uncertain when. Despite the uncertainty, there are advantages to making a move in today's market rather than waiting for a future "hot" market. The price gap between the sale of a current home and the purchase of a new property creates valuable leverage for buyers. With current conditions, this gap is particularly favourable, allowing buyers to maximize their mortgage potential and position themselves advantageously for the future, even without adding additional funds from their sale.
In the local market, rental prices have declined slightly recently, but renting in Greater Vancouver remains expensive. Despite high rents, this does not appear to be a primary factor influencing first-time homebuyers in the area. Buyers in this segment are making decisions based on other considerations, such as long-term investment potential, location, and affordability within their purchase range, rather than simply comparing buying to renting.
Real estate investors are almost nonexistent in Vancouver right now. There are few opportunities that would not require someone to have negative cash flow. The greater Vancouver market has always been about growth potential, versus monthly or annual cash flow, which relatively speaking other Canadian markets thrive on. In greater Vancouver, the future sale price is the main reason for purchasing an investment property.
The year ahead is expected to be a strategic year to buy, with current interest rates remaining attractive relative to long-term averages. The era of historically ultra-low rates is now behind us and unlikely to return. Entering the market at a reasonable rate while real estate prices are relatively low positions buyers for long-term growth and strong potential of equity gains over time.
Heading into 2026, declining interest rates are beginning to support consumer confidence in Greater Vancouver. Given that local home prices are significantly higher than much of the rest of Canada, buyers remain highly focused on price. If interest rates were to rise again, it could trigger a notable decline in home values as consumers adjust their purchasing decisions, creating potential downward pressure on the market. Overall, the first half of the year is expected to remain largely balanced across most segments, with the condo market leaning toward a buyers' market. In general, market conditions in 2026 are anticipated to follow trends similar to those seen in 2025.
The most important factor affecting the local housing market is high inventory, which has been steadily increasing while demand remains relatively stagnant, placing downward pressure on home prices. Declining interest rates are gradually improving buyer sentiment, but the market has not yet fully turned a corner. In Greater Vancouver, market conditions largely depend on the interplay between inventory levels, demand, and interest rates, and these dynamics are expected to continue through 2026. The luxury segment currently presents strong opportunities, allowing buyers to acquire high-value properties with significant long-term upside, making it an attractive option for building a real estate investment portfolio. Additionally, the move-up segment—where current townhome owners transition to detached homes—remains a key driver of activity and is expected to continue influencing the market next year.
Current policy measures are having a limited impact on housing activity in the region. With interest rates at their current levels, the stress test is not a significant barrier for buyers, and the foreign buyer ban has had minimal effect. However, if the foreign buyer ban were lifted, it could shift consumer sentiment, as buyers might anticipate increased competition and rising prices, potentially accelerating purchasing activity. Early in 2025, a short-term surge in land acquisition occurred due to the provincial Small-Scale Multi-Unit Housing (SSMUH) zoning guidelines. However, the market did not sustain momentum, and with high construction, permit, and holding costs, many developers opted to remain on the sidelines rather than move forward with new projects.
In 2025, technology is increasingly shaping how buyers search for homes, with a noticeable shift toward social platforms like YouTube and Instagram. These platforms have become central to the home search process, and Realtors who do not leverage them risk falling behind. While over 80% of buyers have historically started their search online, many are now using social media and AI tools, such as ChatGPT and Google Gemini, in addition to traditional search engines. With sales data now publicly available online, the average buyer can access the same information as realtors. This transparency allows buyers to compare market analysis on their home or a property they are interested in, helping them feel more confident in assessing its value.
