February brings balance to Vancouver's housing marketVANCOUVER, BC – March 4, 2025 – After a 46 per cent year-over-year increase of new listings in January, the number of newly listed properties on the MLS® in Metro Vancouver* rose more moderately in February helping keep market conditions in balanced territory.
“After the rush of new listings in January, home sales and new listings in February were closer to historical averages, which has positioned the overall market in balanced conditions,” Andrew Lis, GVR’s director of economics and data analytics said. “With a potential Bank of Canada rate cut on the table for mid-March, homebuyers may find slightly improved borrowing conditions while enjoying the largest selection of homes on the market since pre pandemic times.”
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 12,744, a 32.3 per cent increase compared to February 2024 (9,634). This is also 36.4 per cent above the 10-year seasonal average (9,341).
Across all detached, attached and apartment property types, the sales-to-active listings ratio for February 2025 is 14.8 per cent. By property type, the ratio is 10.7 per cent for detached homes, 18.5 per cent for attached, and 16.8 per cent for apartments. Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“Balanced market conditions typically bring a flatter price trajectory, and we’ve seen prices across all segments remain in a holding pattern for the past few months,” Lis said. “But with the active spring season just around the corner, it will be interesting to see whether buyers take advantage of some of the most favorable market conditions seen in years, and whether sellers change their willingness to bring their properties to market.”
Hello!
Here we are – March. Season of rising temperatures, cherry blossoms, changing away from winter tires, Spring break, and Tariffs?
The above is from the Greater Vancouver Realtors Monthly Statistics letter.
Lots to cover here as we have had to speak to an unprecedented amount of clients over the last month, hearing their needs, wants, concerns, etc. With the Spring Market just around the corner, it is shaping out to be anything but usual. With the instability of the Tariffs and Trade War, potential inflation from it, dropping rates to combat potential unemployment and slowed economy, how would you tackle this to make the move necessary for you and your family? Here we are going to address a few popular topics posed by our clients over the last little while.
Q: I was going to sell to move, but is it better to just rent out my home first until everything stabilizes?
A: When is that going to be? We don’t know. What kind of market will we be left with when things finally stabilize? We don’t know. How much carrying cost / opportunity cost will you incur during this time? We don’t know. What we do know is, with all the new government regulations and taxes imposed over the last few years, and the new Anti-Flipping Tax imposed January 1st 2025, it is making our market less and less attractive for investors. Our market right now is flooded with tenanted properties, which actually makes Owner-Occupied and Vacant properties much more attractive due to the unrestricted timelines for new occupancy as well as generally a better condition of home. Once your home goes from owner occupied (you) to tenant occupied, it adds a whole new layer of complexity when it comes to sell it. Lots more out of your control, combined with tax implications of it being a Secondary Residence as opposed to Primary. Overall, a lot more challenges to come with questionable benefits.
Q: What is the market going to be like in the foreseeable future?
A: It is no longer a “free market”. There are too many “artificial hands” meddling in it with the questionable tariffs, trade war, Canadian elections, etc. Bypassing the noise, what are we seeing and predicting? Rates are going to come down today (prediction, as this article was drafted on Tuesday) by 25 basis points. This is not to grow the economy, but to SALVAGE it. To combat against potential unemployment, reduced GDP, weak loonie, and uncertainty. Rates may continue to drop as an attempt to prevent economic recession. All the while prices rise due to the trade war, causing more inflation than we’ve seen in the last 5 years. And once the trade war is over, which could potentially be as long as 4 years, we would have to combat the massive inflation again, by raising interest rates to a level that could overshadow what we have seen a year ago. Tariffs and Trade Wars are never positive in any means to the citizens it affects – there is no going around that.
Q: How should we price our listing? We’d like to price it above market value to have room to negotiate.
A: That’s what your neighbors are doing. And they’ve been on the market for 10 months. That’s what your friend John is doing. And it’s been on the market for over a year. That’s what the other 150 active listings in your own neighborhood are doing, and nothing is moving. Right now, depending on the product and neighborhood, it is not about selling for record prices. it’s about selling. Period. With an over-saturated market, pricing has to be extremely sharp, combined with extensive marketing, cutting no corners. Every little bit of effort could make the difference between you and your next door neighbor. We have sold multiple condo units this year with IDENTICAL units for sale at the same time. WE, here at Yao Real Estate Group, have been the first and only sale so far in those buildings EVERY, SINGLE, ONE. We are not here to give away your farm. We are here to advise properly with supporting FACTS so you can make the best decision possible, to get to your goal.
Q: We are looking to move to a larger home. The market is scary and we don’t know whether we should.
A: That’s why you call me. When you’re Selling and Buying, you’re doing so in relatively the same market. You sell low, you buy low. You sell high, you buy high. What most people do is, and you can see this from statistics, they like to move during high season. Why? Because they get more money for their original home. Makes sense right? No. Let me explain. When you’re upsizing, whatever you sell your current home for, it’s going to be simply numbers on a piece of paper. Nothing more. It gets moved from your original home to your new home. What truly matters? It’s the delta (difference) between the 2 homes. THAT is what you’re actually paying for. Lets say you bought your home for $1 million dollars whenever you bought it. Since then, market has gone up 20%. You sell your home for $1.2M (great right?), but now that $1.5 million dollar home you wanted is now $1.8M. That’s a difference of $600K. You won’t see a penny of that $1.2M you sold your home for, because the equity goes into your new home. How much more you have to pay now depends on that DIFFERENCE. Let’s take it the other way. Let’s say that same $1 million dollar home you currently own, had its ups and downs and is now back to being worth $1M. That $1.5M home you want is now back to $1.5M (same market). That’s a difference of $500k. Would you rather pay $500k more or $600k more for that same home? THAT, is the real question. Of course there’s break points due to the amount of down payment equity you put in initially, but that’s a deeper conversation that we would look at too.
Uncertainty brings questions. Above are some of the most frequently asked questions we’ve received in the last month, and we hope that they could help you and relate. There are always silver linings in every situation, you just need an agent that’s willing to find it.
Please give us a call or reply to this email if you would like to chat about your plans, whether it’s right away or in a few months. We would love the opportunity to tailor a specific plan for your timing and needs.
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