The final numbers are in, and 2025 has officially cemented itself as a transformative year for Metro Vancouver’s real estate market. According to the year-end data released by the Greater Vancouver REALTORS® (GVR), the past twelve months delivered a potent combination of record-breaking inventory and the lowest sales activity in over two decades. This dynamic has reshaped the landscape, moving the market firmly into balanced-to-buyer’s territory and opening a distinct window of opportunity as we enter 2026.
The Defining Numbers of 2025
The headline figures tell a clear story of contrasting trends:
Annual Sales: Residential sales totalled 23,800 for the year, a 10.4% decrease from 2024 and a striking 24.7% below the region’s 10-year average. This marks the lowest annual sales total since the early 2000s.
Annual Listings: In a stark contrast, a record 65,335 properties were listed on the MLS®—the highest annual total since the mid-1990s and an 8.2% increase over 2024.
Benchmark Price: The MLS® Home Price Index composite benchmark price closed December at $1,114,800, reflecting a 4.5% year-over-year decrease.
A Market of Contrasts: Record Supply Meets Tepid Demand
“This year was one for the history books,” remarked Andrew Lis, GVR’s chief economist. “Although the sales total was the lowest in over two decades, Realtors were still busy listing properties.”
This divergence created a significant accumulation of inventory. As of December 2025, there were 12,550 homes available for sale—a 34.8% increase over the 10-year seasonal average. This surge in supply against moderated demand directly influenced pricing power, leading to the observed softening in benchmark prices across all categories: detached homes, townhouses, and apartments.
The critical sales-to-active listings ratio for December settled at 12.7%. Historically, analysts note that sustained ratios below 12% indicate downward pressure on prices, while periods above 20% signal upward pressure. The current figure firmly places the market in a zone that favours buyers.
What Drove the Shift in 2025?
GVR’s forecast at the start of 2025 had identified a key downside risk: escalating trade tensions with the USA. “Unfortunately, this risk materialized,” Lis noted, impacting economic confidence and, consequently, homebuyer activity. However, he pointed to a silver lining: “The negative impact of these trade tensions appears to be easing, and consumer sentiment has improved modestly over the second half of the year.”
Concurrently, borrowing costs began a gradual descent, falling nearly a full percentage point from their peaks. This financial easing, however, took time to counteract the initial shock of economic uncertainty.
The 2026 Outlook: A Window of Opportunity
The convergence of three key factors is now setting the stage for a potential reset in 2026:
Increased Inventory: Buyers have more choice than they have in years.
Reduced Prices: Benchmark prices have adjusted from their peaks.
Lower Borrowing Costs: Mortgage rates have come down from recent highs.
“With lower prices, lower borrowing costs, and plenty of inventory to choose from, homebuyers in 2026 are starting the year with favourable conditions,” Lis summarized. “Whether these conditions translate into a market with stronger demand will be the million-dollar question.”
What This Means for You
For Buyers: The power dynamic has shifted. This environment allows for more due diligence, less pressure to waive subjects, and increased negotiating leverage. The key is securing financing and being ready to act strategically on well-priced properties.
For Sellers: Pricing correctly from the outset, staging effectively, and marketing professionally are non-negotiable. Understanding the competitive landscape is crucial to attracting the right buyers in a market where they have options.
For Observers: This shift represents a normalization toward a more balanced market, not a collapse. It’s a cyclical correction following an extended period of intense seller advantage, influenced by broader economic factors.
Navigating the New Landscape
The Metro Vancouver market is complex and hyper-local. While regional trends are informative, individual neighbourhoods and property types can behave differently. An informed strategy is your greatest asset.
Are you curious about what these shifting dynamics mean for your specific home-buying or selling goals? Let’s discuss your situation. Contact me today for a detailed, personalized analysis of your neighbourhood and a roadmap for success in the 2026 market.
Data and commentary sourced from the Greater Vancouver REALTORS® (GVR) December 2025 and Year-End Market Reports.
#MetroVancouverRealEstate #GVRStats #VancouverHousing #BuyerMarket #MarketUpdate #RealEstate2025 #GVR #YearInReview #MarketUpdate #HomeSales #RealEstateStats #BuyersMarket #VancouverRE #HouseHunting #LowerMainland #RealEstateNews #HomePrices #MarketInsights #TaraKennedy #BCRealEstate
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.