In this episode, Marko Gelo and Andrew Way (of Oakwyn Realty) discuss Vancouver Real Estate and other surrounding factors that are influencing it. Here’s a summary of the discussion :

February 2025 Vancouver Market Overview

1. Current Market Overview :
• Metro Vancouver’s property listings are up by 32.3% compared to February 2024, with 12,744 listings currently available.
• This is 36.4% above the 10-year seasonal average, providing buyers with more options than in a long time.
• Sales-to-active-listing ratios are 14.8%, indicating a balanced market overall. However, detached homes are at 10.7%, which is below the 12% threshold that usually signals downward pressure on prices (buyers market).

2. Home Price Trends :
• The Home Price Index for Metro Vancouver shows a benchmark price of $1,169,100, a slight decrease from earlier in the year.
• Prices for detached homes have remained stable with a slight increase compared to February 2024 ($2,006,000).
• Condo and attached home prices have experienced slight decreases compared to February 2024, but the changes are modest.

3. First-Time Homebuyers :
• There is growing activity among first-time homebuyers, including older buyers (up to early 40s), not just the typical 20-30-year-old demographic.
• The current market presents a good opportunity for first-time buyers, as prices have come down slightly, and relaxed mortgage rules have increased purchasing power.
• There has been a noticeable uptick in pre-approvals, signaling more optimism in this market segment.

4. Interest Rates and Economic Factors :
• Interest rates have fluctuated due to political instability (e.g., tariffs), but overall, a slight decrease in rates is expected in 2025, particularly for variable-rate mortgages.
• Economic indicators such as unemployment remain stable, and job growth is still strong, although certain sectors like automotive may face challenges.

5. Days on Market and Sales Activity :

• In Burnaby, detached homes saw a significant drop in days on market from 31 in January to 11 in February, with sales increasing slightly.
• This suggests that well-marketed and properly priced homes are still selling quickly.

6. Supply and Construction Trends :
• While inventory is high, there are concerns about new construction slowing down due to uncertain economic conditions and tariffs.
• Developers are holding back on new builds, which may impact long-term supply and keep prices steady or increase them.
• There is also a shift towards smaller developers building multi-unit properties like duplexes and six-plexes, with an increasing focus on land assembly.

7. Challenges in the Market :
• The market is experiencing more complex pre-qualification processes, with lenders requiring more documentation than before.
• Buyers need to be fully prepared before entering the market to avoid disappointment if they can’t qualify for the property they want.

8. Conclusion and Outlook :
• The market is currently in a balanced state with both opportunities and challenges. The next few months will be crucial to see how the market responds to ongoing economic uncertainty and how buyers’ confidence shifts.
• March is expected to be a significant month for market trends, and political and economic developments will likely influence consumer sentiment and sales activity.

Vancouver Real Estate Market Update with Andrew Way | The Mortgage Centre