Vancouver home sales slide in June but housing market recovery could be near, says board

Metro Vancouver’s housing market saw a 9.8% drop in home sales year over year in June, but local realtors believe conditions are beginning to turn a corner after a sluggish start to the year.

Greater Vancouver Realtors (GVR) eported that residential sales came in at 2,181 last month, down from 2,418 in June 2024, and 25.8% below the 10-year seasonal average of 2,940 transactions.

Despite the year-over-year decline, the board says the monthly drop is only half the size of May’s, signaling an early-stage recovery.

“On a trended basis, signs are emerging that sales activity is rounding the corner after a challenging first half to the year,” said Andrew Lis, GVR’s director of economics and data analytics. “If this momentum continues, it may not be long before sales are up year-over-year, which would mark a shift toward a market with more demand than the unusually low demand we’ve seen so far this year.”

Inventory glut

There were 6,315 new listings added to the MLS in June, up 10.3% from the same month in 2024 and 12.7% above the 10-year average. The total inventory in the region rose to 17,561, marking a 23.8% increase over June 2024 and 43.7% higher than the 10-year seasonal average.

The overall sales-to-active listings ratio in June stood at 12.8%, indicating balanced market conditions. By segment, the ratio was 9.9% for detached homes, 16.9% for attached, and 13.9% for apartments.

According to GVR, ratios below 12% over sustained periods typically point to downward pressure on prices, while values tend to rise when the ratio exceeds 20%.

“As home sales regain their footing, inventory levels aren’t building as quickly as we’ve seen lately,” Lis said in the report. “Most market segments remain in balanced market conditions, which has generally kept prices trending sideways since the start of the year.

“With over 17,000 listings on the market right now, and with mortgage rates down around two per cent since last summer, buyers are enjoying some of the most favourable conditions seen in years.”

Signs of stabilization

The MLS Home Price Index composite benchmark price across all residential properties in Metro Vancouver stood at $1,173,100, a 2.8% decrease year over year, and down 0.3% from May 2025.

Despite some signs of stabilization, a Reuters poll forecasts a 2% decline in home prices in Vancouver and a 4% drop in Toronto for 2025. However, some experts believe the worst of the correction has already occurred.

Detached home sales totaled 657 units, a 5.3% decline from June 2024. The benchmark price fell to $1,994,500, down 3.2% year over year and 0.1% from May.

Apartment sales posted a larger drop, down 16.5% to 1,040 units, with a benchmark price of $748,400, representing a 3.2% decline from June 2024 and 1.2% from May.

However, attached home sales rose 3.7% year over year to 473 units. The benchmark price for townhomes was $1,103,900, down 3% annually and 0.3% monthly.

Vancouver condo market avoids Toronto-level slump – for now

While condo market conditions in Vancouver remain soft, the city is still outperforming Toronto, where oversupply is pushing the segment toward deeper corrections. Canada Mortgage and Housing Corporation (CMHC) flagged both Vancouver and Toronto as high-risk condo markets due to the significant slowdown in recent sales activity.

In Toronto, condo purchase activity has plunged by 75% since 2022, compared to a 37% decline in Vancouver, according to CMHC data. In April, over 2,000 new condo units in Vancouver were unsold and unoccupied — the highest level in more than a decade.

Even so, local industry professionals are not ringing alarm bells just yet.

“I think it’s a bit more difficult in Toronto than here,” Anthony Zhang, a mortgage broker with DLC Clear Trust Mortgages, said in a recent interview with Canadian Mortgage Professional. “I see there’s some challenges on the supply side, and people are struggling to sell. But I think the problem is getting even worse in Toronto.”

CMP

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market. 

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome and rewarded!

Homebuyers waive home inspections amid housing frenzy

As Newfoundland and Labrador’s housing market intensifies, some homebuyers are choosing to skip home inspections in a bid to secure properties faster, raising concerns about consumer protection and long-term risks.

Real estate agent Jerry Boyles, with Royal LePage Property Consultants, said the shift is a response to a seller’s market where bidding wars are becoming more common.

“I’m certainly dealing with it all the time. I have several on the go right now,” Boyles told CBC News, noting that buyers are waiving inspections to gain an edge in competitive offers. “When we’re doing an offer in a multiple-bidding situation or competitive scenario, there’s only so many things we can control.”

He explained that buyers are often willing to offer more money or adjust contract conditions, including removing the home inspection clause, to make their bids more appealing. Sellers, faced with dozens of bids, may lean toward offers with fewer conditions.

Boyles said agents work closely with clients to assess how motivated they are and to what extent they are willing to take risks. “I think in a position where I don’t need to buy a home, naturally it’s easy to say that I would never waive an inspection,” he added.

While acknowledging the urgency many buyers feel, Boyles emphasized that skipping inspections means foregoing important due diligence. “There’s certain elements of due diligence there that are being skipped as a by-product of the client motivation and of the market’s craziness.”

Mike Guihan, a longtime inspector and owner of Guardsman Inspections Canada Inc., has witnessed the consequences of uninspected purchases – from mould in attics to rotting windows and dangerously unstable homes.

“It’s protection. That’s what it’s all about,” Guihan highlighted in an interview with CBC News. “Home inspection is the ultimate form of consumer protection.”

Although bypassing inspections isn’t new, Guihan noted the trend appears to be growing alongside soaring property prices. He said he’s heard of homes selling for over $80,000 above the asking price, increasing the temptation for buyers to take shortcuts.

However, Guihan warned that not all inspectors are qualified, and poor inspections offer little reassurance. He called for provincial regulation of the home inspection industry.

Boyles urged buyers to avoid rushing the process when possible. “If you can plan to put yourself in a position where you don’t have to move, then you’re giving yourself the runway… to be able to make a decision on your own terms,” he said.

CMP

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market. 

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome and rewarded!

Canada's economy softens further – but BoC still faces big dilemma on rate cuts

Canada’s economy contracted slightly in April, spurred mainly by the biggest manufacturing-sector decline for four years – but this week’s sticky inflation figures mean the Bank of Canada may not have the green light to cut interest rates yet.

Statistics Canada said on Friday that real gross domestic product for April slipped by 0.1%, lower than its advance expectations, with a preliminary estimate for May also suggesting a decline by the same amount that month.

The manufacturing sector slowed by 1.9%, its largest drop since April 2021, as the economy’s sluggish performance amid a bruising trade war with the United States continued.

Still, Bank of Montreal (BMO) chief economist Doug Porter suggested that while that weakness is unsurprising, the central bank will be making no snap decisions based on the April data.

“We suspect that the underlying softness in growth and employment will eventually pave the way for additional rate relief,” he said in a note to clients. “However, the stickiness of core inflation remains a big hurdle for near-term rate cuts; we still have exactly one month of data before the next decision.”

The overall inflation rate held steady at 1.7% in May, StatCan said on Tuesday, but the core consumer price index (CPI) – which excludes volatile food and energy costs – remained elevated at 3.0% despite easing slightly month over month.

Central bank still in wait-and-see mode despite economic slowdown

Canadian Imperial Bank of Commerce (CIBC) economist Andrew Grantham said the latest economic data was “somewhat supportive” of the bank’s expectations that a rate cut is on the way at the end of July, although he added that’s by no means a surefire thing.

“Upcoming employment and inflation data will be more important in determining whether policymakers feel comfortable making a move at that time,” Grantham said.

Expectations of a slight contraction in the second quarter mean the economy’s performance is likely to fall somewhere between the two scenarios mapped out by the Bank of Canada in an April monetary policy report – one envisaging huge turbulence from the trade war, and another with a more optimistic bent.

Porter said BMO’s expectations for the second and third quarters are “certainly not good news, but also a less dire outcome than expected a few months back at the height of the tariff drama.”

Much will depend on whether negotiations progress between Canada and the US on ending the trade war, with prime minister Mark Carney and US president Donald Trump working to strike a deal by July 21.

LSEG data suggests financial markets view a 37% chance that the Bank of Canada will decide to trim its benchmark rate in July, with higher expectations of rate cuts further down the line in 2025.

CMP

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market. 

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome and rewarded!

First Ontario, now Vancouver: Condo crisis forces developers to cut staff, sell properties

Vancouver’s once red-hot condo development sector is now following the same path as Ontario’s as major developers and marketing firms cut staff and offload assets amid what industry leaders are calling a “cost-of-delivery crisis.”

The latest to announce cutbacks is Wesgroup Properties, the developer behind the River District master-planned community, which revealed last week it would lay off 12% of its workforce. This came shortly after the condo marketing giant Rennie Group let go of 25% of its staff.

“The layoffs were the direct result of having to delay future projects,” Wesgroup president and CEO Beau Jarvis told The Globe and Mail.

He described the current environment as “unprecedented pressure” and emphasized, “Like many of our peers, we’ve reached a point where we must realign our operations for long-term sustainability.”

Jarvis noted that despite the restructuring, Wesgroup remains “fiscally sound.”

The market shift has been in motion since inflation spiked and interest rates began rising in 2022. Many developers have been forced to put projects on hold, lay off staff, or sell off property to cover costs, a trend that started with Coromandel Properties’ creditor protection announcement in early 2023 and has since rippled through smaller and mid-sized players.

Magnum Properties CEO George Wong reported that he, too, has reduced staff and is advising developers to postpone condo presales.

“You’d need to sell around 60% of the building within 12 to 18 months to get financing, and that is not currently achievable,” Wong explained, citing high interest rates, government anti-speculation policies, and wary investors.

“We’re in the same boat. We ride the same tide,” he said, adding that the current market has required constant adaptation.

Ontario’s homebuilding sector also warned of widespread layoffs and stalled housing delivery if construction costs remain steep.

Last week, the Building Industry and Land Development Association (BILD) reported that construction of new homes could bottom out at just 4,000 single-family homes and 10,000 apartments per year if market conditions don’t improve.

To manage cash flow, several developers are quietly offloading assets, sometimes at discounted prices to industry insiders.

“A couple of projects from big developers… have quietly signed nondisclosure agreements and passed on really attractive pricing to the insiders so they can move more product,” Wong said. “The banks [financing] presales, they will say: ‘Show me 150 sales, otherwise, we won’t give you the money to build.’”

In a statement, Jarvis described the current environment as a “cost-of-delivery crisis.” He confirmed that Wesgroup has been selling assets to cover costs and that the industry is delivering homes that many can’t afford.

Broader industry data highlight the extent of the downturn. Urban Development Institute president Anne McMullin noted that 22% of land sales over $5 million in Q1 2025 were court-ordered. There is growing pressure on governments at all levels to adjust policies, with industry leaders calling for lower municipal fees and a lift on the federal foreign buyer ban.

“There is generally a movement developing to ask the federal government to lift that,” said developer Michael Geller, who believes the absence of foreign buyers is affecting the broader market—not just presales.

Despite a record 33,000 new housing starts in Vancouver in 2023, many more approved projects are now stalled. The region’s vacancy rate for rentals is also at a 20-year high (excluding the pandemic), even as supply has shifted from condos to rental project.

Simon Fraser University’s Andy Yan cautioned that while the current environment represents a sharp adjustment, it may not be a disaster.

“Is this an end of sunny days or a prolonged period of climate change for the market residential industry?” he said. Yan also pointed out that while policies to curb speculation and boost rental supply are working, there is still much progress to be made on true affordability for local buyers.

“We decided to regulate for the public good and market exclusion, and this is where we are at. However, we still have far to go in terms of housing affordability for those on local incomes and without access to wealth.”

CMP

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market. 

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome and rewarded!

Canada's GDP contracts 0.1% in April

Canada’s economy declined 0.1% in April, reversing gains from the previous month as US tariffs continued to weigh on economic activity. The contraction fell slightly below economists’ expectations of flat growth and marked a reversal from March’s 0.2% expansion.

The economic decline was attributed to a 0.6% drop in goods-producing industries, which represent 25% of Canada’s gross domestic product. Manufacturing recorded a significant decline, with durable goods production falling 2.2%.

“The weakness has mainly affected the manufacturing sector, while the rest of the economy has been more resilient,” said Charles St-Arnaud, chief economist at Alberta Central. More than half of industries recorded growth during April, but manufacturing losses offset these gains entirely.

Statistics Canada’s preliminary data indicates another 0.1% contraction in May. Several economists project Canada’s economy will contract modestly in the second quarter following 2.2% growth in the first quarter.

“Q2 GDP is now tracking a modest 0.3% contraction which is between the two scenarios the Bank of Canada laid out,” said Andrew Grantham, senior economist at CIBC.

Interest rate cut uncertain

Money markets currently assign 35% odds of a rate cut at the Bank of Canada’s July 30 meeting, a report from Morningstar noted. The central bank has held its policy rate at 2.75% since April after seven consecutive cuts, including two earlier this year.

However, economists remain divided on the likelihood of immediate rate relief. Core inflation stands at 3%.

“The central bank has made it clear that it is more focused on current inflation than on economic weakness,” St-Arnaud noted. “We think the Bank of Canada is more likely to stay on the sidelines unless inflation eases further.”

Trade war impact timeline disputed

Tony Stillo of Oxford Economics stated April marks “the beginning of a trade war-induced recession that will likely stretch through the end of 2025, unless a US-Canada trade deal is reached.”

Clair Fan of Royal Bank of Canada said the bank expects “the pain from trade uncertainties will stay relatively contained, leaving the economy softer but not substantially worse off.”

The Bank of Canada’s next decision will likely hinge on upcoming employment data and the July inflation report, with policymakers weighing persistent economic slack against stubborn core inflation pressures.

CMP

We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market. 

Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome and rewarded!