Welcome to the January Metro Vancouver Real Estate Market Update. January saw a surge in sellers entering the market. New listings were 46% higher than last January, representing a 31.1% increase above the 10-year seasonal average.
Sales also picked up slightly, coming in at 11.3% below the 10-year seasonal average, an improvement from the previous month when sales were 14.9% below the average.
The influx of new listings reduced the sales-to-active listings ratio across all property types. This ratio is a measure of supply and demand in the market. As shown in the table, there has been a four-month downward trend, indicating a weakening market. In general, prices have been declining. However, in January, detached homes saw a slight price increase of 0.4% compared to December 2024. This could indicate that some buyers remain optimistic due to the interest rate environment. Meanwhile, townhomes and apartments experienced price declines of 0.8% and 0.2%, respectively.
The future of the economy—and, by extension, the housing market—will depend largely on how tariff issues are resolved. There is some disagreement among economists about whether the Bank of Canada will raise or lower interest rates in response to the economic impact of tariffs. I believe tariffs will hurt the economy, and the Bank of Canada should lower rates in response. If you look at the movement of the Canada 5-year government bond, bond traders seem to share this view. The announcement of impending tariffs on the weekend drove bond yields down Monday morning, but when an extension seemed likely, yields recovered somewhat. Remember, the 5-year mortgage rate follows the 5-year government bond.
February is a time for love – love your partner, love your family and love yourself!
Have a great month!
