Why Buyers Aren’t Taking Advantage of a Favorable Market

The Vancouver real estate market is entering an unusual phase—one where conditions strongly favor buyers, yet many are choosing to stay on the sidelines. With rising inventory, stable prices, and historically low interest rates, the question remains: Why aren’t buyers taking action?In this Vancouver housing market update for March 2025, we’ll break down key trends, pricing shifts, and what this means for buyers and sellers across the city.

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Vancouver Real Estate Market Overview – March 2025

Sales Decline Despite Buyer-Friendly Conditions

March 2025 saw 2,091 residential sales, marking a 13.4% decrease from March 2024 and a staggering 36.8% drop compared to the 10-year March average of 3,308.On the other hand, new listings surged, with 6,455 homes hitting the market—a 29% increase year-over-year and 15.8% higher than the 10-year average.This increase in listings has driven Vancouver’s total active inventory to 14,546, up 37.9% from last year and 44.9% above the 10-year average.

Vancouver Home Prices Hold Steady

Despite increased inventory, prices have remained relatively stable:

• Detached Homes: $2,034,400 (+0.2% from February 2025)
• Townhomes (Attached Homes): $1,113,100 (-0.8% from March 2024)
• Condos: $767,300 (-0.5% from March 2024)

While prices have softened slightly in some segments, we aren’t seeing major price drops that would indicate a market crash.

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Vancouver Real Estate Market Trends by Neighborhood

Vancouver West

Luxury properties and high-end condos in Vancouver West are seeing longer days on market, though demand for well-located townhomes remains strong.Neighborhood Highlights:

• Kitsilano: Strong demand for townhomes and condos, though detached homes are taking longer to sell.
• Fairview & False Creek: Condos and townhomes near transit and the seawall remain popular.
• Downtown & Coal Harbour: High-end condos are seeing fewer buyers, leading to more price negotiations.

Market Insight: The luxury market is softening, while mid-range properties in transit-accessible areas are holding steady.

Vancouver East

Known for its relatively more affordable housing, East Vancouver is seeing an increase in inventory, giving buyers more room to negotiate.Neighborhood Highlights:

• Mount Pleasant: The Broadway Corridor remains a strong investment, though condos are taking longer to sell.
• Grandview-Woodland: Homes near Commercial Drive remain in demand, but competition has softened.
• Hastings-Sunrise: Affordability continues to attract buyers, though listings are staying on the market longer.

Market Insight: Buyers have more negotiating power, but well-priced homes are still moving quickly.

Downtown Vancouver

• Condo sales have slowed, despite strong demand for rental-friendly buildings.
• Rising inventory has given buyers more leverage, making negotiations a key factor in sales.

Market Insight: The downtown condo market is shifting toward a buyer’s market, particularly in older buildings with fewer amenities.

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Why Aren’t Buyers Jumping Into the Market?

1. Economic and Political Uncertainty

According to Greater Vancouver Realtors (GVR), buyer hesitation in early 2025 mirrors trends seen in early 2023—where the market started slow but gained momentum in spring and summer. However, ongoing concerns like the US-Canada trade dispute and broader economic uncertainty are affecting buyer confidence.

2. Interest Rates Aren’t the Issue

The Bank of Canada has been cutting interest rates since June 2024, which would typically stimulate demand. However, many buyers remain cautious, expecting further price adjustments before making a move.

3. A “Wait and See” Mentality

With the highest level of active listings in a decade, buyers have more choices than ever before. Many are opting to wait for further price reductions, creating a standoff between buyers and sellers.

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What This Means for You

For Buyers:

• You have more choices than at any point in recent years.
• Sellers are more willing to negotiate.
• Interest rates remain favorable, making this a strategic time to buy.

For Sellers:

• Pricing your home competitively is critical. Overpricing will lead to a longer time on the market.
• Staging and marketing strategies matter more than ever. In a high-inventory market, presentation is key.
• Expect negotiations. Buyers have the upper hand and will push for price reductions.

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Looking Ahead: What’s Next for Vancouver’s Housing Market?

The next few months will be crucial in determining whether Vancouver’s real estate market gains momentum or remains sluggish. If buyer confidence improves, we could see a rebound in activity heading into the summer market.For now, buyers hold the advantage, but only if they decide to step in.