Vancouver Real Estate Sales Crash Historic

Title: Is This the Worst Time to Own Real Estate?

By Elke Porter | WBN Ai | June 9, 2025
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Runtime: ~2.39 mins
Source: Living in Vancouver - Vancouver Life Real Estate

Summary of Video

Sales volumes have collapsed across Canada, and Vancouver is no exception. May 2025 saw just 2,228 sales—down 18.5% from an already slow May last year, and a staggering 30.5% below the 10-year average. This marks the slowest May on record in over 20 years, highlighting just how extreme the slowdown has become. In the pre-sale market, the picture is even bleaker. Vancouver saw only 816 new condo sales in the first quarter of 2025, an 84% drop from the 5,250 sold during the same period in 2022. Meanwhile, in the Greater Toronto Area, April 2025 recorded only 310 new home sales, a shocking 72% drop from the same time last year and an astonishing 89% below the 10-year average—this is the worst April on record for new home sales in the GTA.

Has the market hit rock bottom or are there further declines ahead?

Key Headlines

Sales Collapse: Vancouver recorded only 2,228 sales in May 2025, down 18.5% from May 2024 and 30.5% below the 10-year average
Historic Lows: This represents the slowest May on record in over 20 years

Market Conditions

Sales Volume Crisis

Pre-sale Market: Only 816 new condo sales in Q1 2025, an 84% drop from 5,250 in Q1 2022
Resale Market: Buyers have extensive selection but sales remain extremely low
Sales-to-Active Ratio: Just 14%, indicating a strong buyers' market

Inventory Surge

New Listings: 6,640 in May 2025, up 4% from May 2024 and 9% above 10-year average
Active Inventory: Soared to 16,535 units (up 26% year-over-year, 46% above 10-year average)
Market Context: Highest inventory levels since July 2014, representing an 11-year high

Pricing Trends

Composite HPI: Dropped $7,000 (0.6%) month-over-month to $1,177,100
Median Price: Rose for fourth consecutive month to $985,000 (highest this year)
Market Dynamics: High-end homes still selling while overall market remains fragile

Broader Canadian Context

Greater Toronto Area (GTA)

New Home Sales: Only 310 in April 2025, down 72% from previous year and 89% below 10-year average
Inventory Flood: 30,964 active listings in May (up 41.5% year-over-year)
Historical Context: Inventory levels not seen since 1995 housing downturn

Economic Factors

Interest Rates: Bank of Canada held overnight rate at 2.75% for second consecutive meeting
Inflation Concerns: Core inflation still above 3% on three-month annualized basis
Economic Climate: Stagflation risks from trade tensions and tariffs affecting growth and borrowing costs

Market Sentiment

Buyer Hesitancy: Despite aggressive discounting (up to 25% off at some developments), sales remain weak
Seller Pressure: Advised to take offers seriously due to limited buyer activity
Uncertainty: Question remains whether market has hit bottom or if further declines are ahead

Why Does It Matter?

The Vancouver real estate crash matters because it represents a fundamental economic shock that extends far beyond property values - when sales drop 30% below historical averages and inventory hits 11-year highs, it triggers mass job losses in construction and related industries, wipes out household wealth for homeowners whose properties are their largest assets, devastates government revenues from property taxes and transfer fees, and potentially reshapes the city's demographics as residents flee high costs while others may finally find Vancouver accessible.

Combined with Toronto experiencing similar historic downturns, this signals a broader Canadian economic crisis that complicates monetary policy and threatens national economic stability, suggesting we're witnessing not just a market correction but a structural shift that could define Vancouver's economy for years to come.

Bottom Line

The Vancouver real estate market is experiencing a historic sales collapse with record-low transaction volumes despite surging inventory levels. While some pricing resilience remains, the fundamental disconnect between supply and demand suggests continued market challenges ahead.

TAGS: #WBN News Live #Vancouver Real Estate #Real Estate Crash #Vancouver Housing #Canadian Real Estate #Housing Market #Property Market

WBN News Live Team

Connect with Elke at Westcoast German Media or on LinkedIn: Elke Porter or contact her on WhatsApp: +1 604 828 8788