Condo slowdown drags down Metro Vancouver sales in May

Apartment buyers in Metro Vancouver saw a drop in activity last month, contributing to a decline in overall home sales. Greater Vancouver Realtors (GVR) recorded 2,150 residential sales in May, a 3.5 per cent decrease from May 2025 and 27 per cent below the 10-year seasonal average. The decline in apartment sales, which fell 7 per cent year-over-year, offset slight gains elsewhere in the market.

New listings in Metro Vancouver also dropped by 7.6 per cent compared to the previous year, with 6,115 properties added to the market. Active listings remained high, totaling 16,917 at the end of May, a 1 per cent drop from May 2025 but 35 per cent above the 10-year seasonal average.

The sales-to-active listings ratio stood at 13.1 per cent in May. Historical data suggests that when the ratio drops below 12 per cent, downward pressure on prices typically follows. Andrew Lis, GVR’s chief economist and vice-president of data analytics, noted that strong inventory levels are absorbing weak buyer demand, keeping price changes in check.

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The benchmark price for residential properties in Metro Vancouver was $1.1 million in May, a 6.2 per cent decrease from the previous year but 0.2 per cent higher than in April. Lis stated that sales activity remains close to forecasts, indicating a stable summer market with no major changes expected soon.

Home sales in the Fraser Valley were subdued in May, with first-time buyers staying on the sidelines. Move-up buyers, however, drove activity in the detached housing segment. The Fraser Valley Real Estate Board reported 1,124 sales in May, a 0.5 per cent increase from April but 5 per cent lower than the same period last year. Single-family homes were the most active housing type in the region.

Fraser Valley Market Remains Subdued
Board chair Ishaq Ismail noted that first-time buyers are showing little interest, with activity dominated by those looking to move up. The Fraser Valley remained a buyer’s market in May, with over 10,000 active listings and a sales-to-active listings ratio of 11 per cent.

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New listings in the Fraser Valley declined both month-over-month and year-over-year. The composite benchmark price for homes in the area dropped 0.7 per cent to $893,300 in May, ending two months of gains. Board CEO Baldev Gill said economic uncertainty and rising living costs are affecting consumer confidence, though prepared buyers are benefiting from current conditions.

The 13.1 per cent sales-to-active listings ratio in Metro Vancouver indicates a balance between supply and demand. Historical trends suggest ratios below 12 per cent often signal price declines, while those above 20 per cent support growth. The current figure sits between these thresholds, pointing to a market that’s neither strongly buyer- nor seller-dominated. This equilibrium may continue as long as inventory stays high and buyer demand remains cautious.

Detached home sales in the Fraser Valley, though modest, outperformed other segments. Move-up buyers, who are typically more financially stable, accounted for most of the activity. This contrasts with first-time buyers, who have been hesitant due to rising costs and economic uncertainty. The gap between these groups highlights changing patterns in the housing market.

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Industry observers note that the slowdown in apartment sales is not unique to Metro Vancouver. Similar trends are emerging nationwide as buyers reassess priorities in a cooling market. However, Metro Vancouver’s reliance on apartment construction, which has struggled to meet demand, has made the situation more pronounced.

Some analysts remain cautiously optimistic about the summer season, citing no major policy changes or economic shocks on the horizon. However, long-term stability depends on builders increasing production and buyers regaining confidence in the market.

While the benchmark price decline in Metro Vancouver is notable, it has not yet led to a widespread correction. Markets with strong job growth and infrastructure investments are showing resilience. However, without shifts in buyer behavior or reduced inventory, the downward trend in apartment sales may persist.