Vancouver Real Estate Market Experiences Significant Shift as Inventory Climbs
New data reveals a substantial transformation in Metro Vancouver's housing landscape, with homes now averaging approximately 100 days to sell. This notable increase in selling time coincides with a decline in transactions and a significant rise in available inventory, suggesting the market may be entering a new phase of stability.
January Sales Decline While Listings Surge
Figures from HouseSigma indicate that only 1,470 homes sold across Metro Vancouver in January, representing a decline of nearly 30 percent compared to both December and the same period last year. Simultaneously, new listings experienced a dramatic surge early in the year, jumping 169.3 percent month over month in January.
This influx of properties has pushed active listings to 16,605, contributing to the highest recorded level of cumulative days on market. This metric includes properties that have been delisted and relisted, providing a comprehensive view of market activity.
Market Momentum Gradually Shifting
While January sales figures were notably weak, industry experts caution against viewing these numbers in isolation. Andrew Lis, chief economist and vice-president of data analytics at Greater Vancouver Realtors, describes recent activity as part of a market that is "slowly evolving to what may be a new normal."
Lis emphasizes that market momentum has been gradually shifting, with buyer interest remaining visible but urgency significantly diminished. Buyers continue to attend showings and open houses but demonstrate increasing reluctance to commit, often scrutinizing listings extensively and delaying decisions.
Buyer Hesitation Lengthens Selling Process
Steve Saretsky, a realtor working primarily in the City of Vancouver, observes that buyers have become "incredibly picky" with "zero urgency to do a deal." This hesitation has substantially lengthened the price-discovery process for sellers, with many listings now undergoing multiple price reductions or relaunches before attracting serious interest.
Adil Dinani, another Vancouver-based realtor, notes that expectations have shifted as uncertainty around interest rates and the broader economy has given way to greater clarity. With borrowing costs expected to remain elevated for longer, more sellers recognize that aspirational pricing risks missing the market entirely.
Dinani explains that pricing has become "an invitation for buyers," and listings that fail to attract early interest tend to lose momentum quickly.
Price Measures Show Modest Movement
Despite the extended selling times, house price measures have shown only modest movement. HouseSigma data indicates the median sale price across all residential property types slipped just 0.8 percent in January.
The MLS Home Price Index composite benchmark for all residential properties in Metro Vancouver stood at $1,101,900 in January, representing a 5.7 percent decline from a year earlier and a 1.2 percent decrease from December, according to Greater Vancouver Realtors.
Investor Activity Continues to Fade
Investor participation has continued to diminish from the market. Saretsky points to several factors contributing to this trend, including softer rents, higher vacancy rates, and tighter short-term rental regulations. These conditions have sidelined investors who previously absorbed a significant share of market supply.
The combination of increased inventory, extended selling times, and reduced investor activity suggests Metro Vancouver's real estate market is undergoing a fundamental recalibration. While prices remain relatively stable, the dynamics between buyers and sellers have shifted substantially, creating what industry professionals describe as a more balanced, though slower-moving, market environment.
