Market Update July 2025

July Snapshot

Metro Vancouver’s housing market edged toward balance in July 2025 as longer listing times and steady new supply tempered earlier price slides. Residential sales reached 2 286 (GVR July 2025), only 2% lower than a year earlier, while total inventory climbed to 17 168 listings (GVR July 2025). With benchmark prices drifting sideways, buyers and sellers negotiated from a narrower gap than seen in early spring.

Sales & Listings Momentum

Activity improved compared with late spring, though buyers remained selective. Detached transactions came in at 660, down 4.1% year‑over‑year, while apartment sales slipped 2.9% to 1 158; attached townhomes bucked the trend, rising 5% to 459 (GVR July 2025). Suburban corridors such as Brentwood and Coquitlam Centre saw brisk absorption of new townhouse inventory, reflecting demand for family‑oriented middle‑price product.

The average sale took 35 days to clear, up from 28 a year ago. Sellers who priced within 2% of the most recent comparable achieved conditional acceptance within two weeks; homes listed above peak‑2024 benchmarks often required multiple price adjustments before attracting offers. Pockets around future SkyTrain stations, including South Granville and Fleetwood, recorded above‑average walk‑in traffic as speculative interest in transit‑oriented development sites persisted.

Price Trends

The composite MLS® HPI benchmark eased to $1 165 300 (0.7% below June and 2.7% under July 2024) (GVR July 2025). Detached values fell back to late‑2022 levels at $1 974 400, though pockets like North Vancouver’s Lynn Valley showed resilience thanks to limited building‑lot supply. Townhomes hovered near $1 099 200, while the apartment benchmark slid to $743 700. On a square‑foot basis, West Side condo resales averaged $1,150, versus $740 in Surrey City Centre.

With mortgage qualification still based on a 5.25% stress‑test rate, most first‑time buyers gravitated toward entry‑level product under $750 000, helping stabilise the condo floor. Luxury detached remained soft: only 18 homes above $4 million sold region‑wide versus 27 last July. Appraisers report fewer subject‑to‑financing renegotiations than in early 2025, indicating lenders are comfortable with present valuations despite economic noise.

Supply–Demand Balance

At 13.8%, the sales‑to‑active listings ratio signals neutral pricing power. Detached sits at 10.2%, just shy of the soft‑market threshold, whereas townhomes (16.7%) and apartments (15.9%) lean slightly in sellers’ favour. Months of inventory hovered at 7.5 for detached and 5 for strata, giving purchasers breathing room to negotiate inspections and financing clauses. Pre‑sale developers continued to offer assignment fee waivers and rate‑buy‑down incentives to clear unsold standing inventory before year‑end.

The Bank of Canada’s July 30 decision to hold the overnight rate at 2.75% (BoC 2025‑07‑30) provided rate stability yet left variable mortgage payments unchanged. Major lenders continue to advertise five‑year fixed rates near 4.75%, a full percentage point lower than January. If inflation moderates as projected in the Monetary Policy Report, the next cut could arrive in October, potentially drawing fence‑sitters back into the market.

Policy Watch

 
• Short‑Term Rental registry enforcement began June 1 2025, requiring a provincial registration number on all listings (BC Gov Jan 2025). Platforms must remove non‑compliant units, which could return hundreds of condos to the long‑term rental pool
• Notice period for “landlord use” evictions reduces from four to three months this summer (BC Gov Apr 2025), tightening timelines for owners planning major renovations or occupancy.
• The 2025 rent‑increase cap holds at 3% (BC Gov Aug 2024), limiting income growth for investors until wage gains or refinancing offset higher costs.

Why It Matters

 
• Balanced conditions offer buyers time to conduct due diligence without the bidding wars of 2021‑22.
• Inventories above 17 000 suggest further price softness is possible if rates stay elevated
• Regulatory pressure on short‑term rentals may improve downtown vacancy rates, easing upward rent pressure.
• Investors face capped rent growth and may adjust pricing expectations, opening negotiation windows for end‑users.

REBGV July 2025 Metrics

 
• Detached: 660 sales; benchmark $1 974 400; 42 DOM
• Townhome: 459 sales; benchmark $1 099 200; 30 DOM
• Apartment: 1 158 sales; benchmark $743 700; 35 DOM
• Total: 2 286 sales; composite benchmark $1 165 300

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Extended Analysis

Macro‑Economic Context

Canada’s economy grew an annualised 1.2% in Q2 2025, below potential but stronger than feared amid tariff uncertainty. Core inflation ran at 2.4%, allowing the central bank to pause. Locally, employment in professional services rose 3.1% year‑over‑year according to Statistics Canada Labour Force Survey tables (StatCan Table 14‑10‑0024), supporting mid‑market housing demand even as construction employment softened.

Forward‑Looking Indicators

Housing starts in Metro Vancouver fell 8% year‑to‑date to 22 450 units, led by a pullback in purpose‑built rental projects (CMHC Starts July 2025). Developers cite financing costs and municipal fee increases. Unless credit conditions ease, completions could drop in 2026, tightening supply just as population growth resumes after Ottawa’s temporary cap on new permanent residents expires.

This article is for informational purposes only. Statistics and market conditions are current as of the publication date and may change without notice. It is not legal or financial advice. Always verify details and consult qualified professionals before making real‑estate decisions.