Vancouver’s Million-Dollar Homes Lose Ground — How Far Could Prices Fall?
Vancouver home prices fall 9% from their highs, creating opportunities for investors and first-time buyers amid shifting market dynamics.
Vancouver
✍️ By Debbie Balfour | WBN News | October 17, 2025 | Click HERE for your FREE Subscription to WBN News and/or to be a Contributor.
Vancouver’s once red-hot housing market is finally cooling, and for many, it’s a long-overdue reality check. The city’s benchmark home price has fallen to $1.14 million, down 3.2% year-over-year and nearly 9% from its peak, according to the latest data from the MLS Home Price Index. For homeowners who’ve watched their property values soar for a decade, this shift feels unsettling. But for buyers and investors? It could be the window they’ve been waiting for.
The price correction stems from a perfect storm of rising interest rates, slower immigration inflows, and a cautious lending environment. Even though inflation has cooled, borrowing remains expensive, locking many would-be buyers out of the market. With fewer qualified buyers, demand is softening, and sellers are finally being forced to negotiate.
Industry watchers, however, say it’s not a crash, it’s a correction. RBC Economics recently noted that Vancouver’s housing market “is recalibrating to a more sustainable pace,” emphasizing that the fundamentals of population growth and long-term demand remain intact.
While the luxury market is taking the hardest hit, mid-range and entry-level segments are seeing renewed activity. As prices drop, investors are once again eyeing undervalued properties in the $800K–$1M range, especially those with strong rental potential.
Still, the slowdown has ripple effects. Developers are pausing new projects, waiting for clarity on demand before breaking ground. That could create another supply crunch down the road, pushing prices back up once conditions stabilize.
For first-time buyers, this is a rare opportunity. After years of frustration, more listings are lingering on the market, and negotiation power has shifted slightly in their favor. But experts caution, timing the bottom perfectly is impossible. Instead, the key is to focus on value, not hype.
For investors and homeowners alike, Vancouver’s price dip marks a turning point, one that separates short-term speculators from strategic wealth builders. As one local broker put it, “The smart money isn’t running. It’s repositioning.”
Debbie Balfour | Real Estate Investing Success Coach + Podcast Host
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Sources and References
- RBC Economics – “Low-Key Start to Fall for Canada’s Housing Market” (October 2025)
Analysis of national and regional market trends, highlighting Vancouver’s price softening and affordability concerns.
🔗 https://thoughtleadership.rbc.com - Canadian Real Estate Association (CREA) – MLS® Home Price Index (September 2025)
Official benchmark data showing Vancouver’s aggregate home price decline of 3.2% year-over-year and 9% from peak levels.
🔗 https://www.crea.ca/housing-market-stats/mls-home-price-index-hpi - Royal LePage – Q3 2025 Housing Market Survey
Comprehensive report on national housing performance, with Vancouver identified as one of the hardest-hit regions by price declines.
🔗 https://www.royallepage.ca/en/realestate/news - Better Dwelling – “Vancouver Home Prices Keep Falling as Buyers Step Back” (October 2025)
Market commentary on buyer hesitation, lending challenges, and the effects of higher interest rates on property values.
🔗 https://betterdwelling.com - Statistics Canada – Residential Construction Investment Data (2025)
Data supporting the slowdown in new housing starts and the ripple effects on supply in major metros like Vancouver.
🔗 https://www150.statcan.gc.ca - Wealth Professional Canada – “Investors Eye Opportunity Amid Vancouver’s Price Correction” (October 2025)
Investor-focused coverage on the re-emerging value in Vancouver’s mid-market property segment.
🔗 https://www.wealthprofessional.ca - Vancouver Real Estate Board (REBGV) – Market Update (September 2025)
Official MLS® data showing declining sales activity and benchmark price changes across Greater Vancouver.
🔗 https://www.rebgv.org
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