A Year for the History Books: Reflecting on 2025 and Navigating the Road to 2026
As we turn the calendar and look ahead to what’s next, it is the perfect time to reflect on a year that was truly one for the record books in Metro Vancouver real estate. 2025 was a year characterized by a significant shift in market dynamics, offering unique challenges for sellers and unprecedented opportunities for patient buyers.2025: The Year of Plentiful Choice
The biggest headline for 2025 was the sales volume, which marked the lowest annual sales total in over two decades. Residential sales across the region were down 10.4% compared to 2024 and sat nearly 25% below the 10-year annual average.While sales were quiet, the "For Sale" signs were anything but. Sellers were incredibly active, bringing the highest total of new listings to the market since the mid-1990s. This surge in inventory, which ended the year 34.8% above the 10-year seasonal average gave buyers a luxury they haven't had in years: the time to find the perfect home without the pressure of a ticking clock. As a result of this high supply and lower demand, prices eased throughout the year. The composite benchmark price for all residential properties in Metro Vancouver ended 2025 at $1,114,800, a 4.5% decrease from December 2024.The market is entering 2026 with a distinct "buyer-friendly" tilt. Here is what we expect to see as the year unfolds:
Favourable Starting Conditions: Homebuyers are starting the year with lower prices, plenty of inventory to choose from, and borrowing costs that fell nearly one full percentage point over the last year.
- The Renewal Wave: We are keeping a close watch on the first half of 2026, which will see a "crest" of mortgage renewals. Many homeowners who secured rates below 2% in 2021 will be transitioning to the current 4% range, which may influence how much inventory comes to market.
- A "Soft" but Steady Market: With vacancy rates at a 30-year high and a slight contraction in BC’s population for the first time on record, the market for investor-heavy product types, like pre-sale condos, may remain soft.
- Balanced Trends in the Tri-Cities: Locally, Coquitlam, Port Coquitlam, and Port Moody
ended the year in a balanced market state. This stability is great news for families looking to upsize, as it allows for more traditional "subject to sale" offers and thoughtful negotiations.