Vancouver real estate sales continue to be slow but show signs of stabilizing or at least pausing. Sales in October were 14.5% below the 10-year average, compared to 20% below in September — so, relatively speaking, things are looking a little better.

That said, while the number of sales did increase over September, the total number of listings dropped — likely due to listings expiring and not being renewed. As a result, the sales-to-active listings ratio appeared stronger than the month before, but the continued decline in prices tells us the market hasn’t truly improved. All housing types saw price drops month over month, with apartments hit the hardest. Apartment sales were 23.1% lower this October than last year, compared to less than 5% lower for attached homes and townhomes. This reflects the oversupply of condos currently on the market — great news for buyers.

Looking ahead, there’s speculation that the Bank of Canada may deliver one more rate cut before year-end, though it’s equally possible that it won’t happen.

However, a new concern has emerged in B.C. real estate. On August 7th, the Supreme Court of British Columbia ruled in favor of the Cowichan Tribes, declaring that 1,846 acres of land in Richmond belong to them, as it was their historic summer village. The court suspended the declaration for 18 months to allow for an orderly transition through negotiation.

Naturally, any real estate transactions involving that land in the meantime will be complicated. There are already reports of a lender refusing to renew a mortgage and a $100 million development being put on hold due to denied funding. More concerning, though, is the revelation of several ongoing Indigenous land claims involving populated areas such as Kamloops and Sun Peaks. So there may be other land claims quietly working through the courts – largely unnoticed, yet maybe equally disruptive when they surface.

Until these matters are resolved, there’s little need to worry about foreign investment pushing prices higher — because there likely won’t be much of it for a while.

As we reflect on the future of land ownership in B.C., let’s also take a moment to honour the courage and sacrifice of those who defended our freedom.
Have a meaningful Remembrance Day.

The post October 2025 Vancouver Real Estate Review first appeared on John Chan Mortgages.

As you can see in the table below, prices across all housing categories declined month-over-month. This trend aligns closely with the sales-to-listings ratio (SLR) — the lower the ratio, the weaker the demand. September marked the third consecutive month of SLR declines across all three housing types.

Looking ahead, most analysts expect one or two additional rate cuts by spring 2026. While this may offer some relief, significant headwinds remain — particularly in the condo market. Reports indicate there are already 2,500 new condo units sitting unsold, with more on the way. Naturally, this may lead some buyers to hold off and wait for prices to bottom out.

Adding to the challenge, the Office of the Superintendent of Financial Institutions (OSFI) recently introduced tighter lending guidelines for rental properties, making it harder to qualify for investment purchases. This adds to the condo problem because many of these units are designed for investors. As a result, presales have slowed considerably. Some developers have even returned deposits after failing to meet presale targets required to secure financing.

This could create a future supply gap — as existing inventory gets absorbed while new units have yet to be built — but for now, upward price pressure remains limited.

As we move into Thanksgiving season, take a moment to count your blessings.

Happy Thanksgiving!

Regardless, take time to count your blessing. Happy Thanksgiving!

The post September 2025 Vancouver Real Estate Review first appeared on John Chan Mortgages.

I’ve seen this problem firsthand. A builder and architect prepare the plans, the city reviews and approves them, and construction begins. Then, sometimes weeks or months later, BC Hydro or BC Tel shows up on their timeline and declares that the building is too close to their overhead lines. Depending on how far along the project is, and what remediation is required, this can be devastating.

What makes it worse is that it’s not usually the owner’s fault. All the professional participants know the rules and guidelines, but the problem still happens. And when it does, no one takes responsibility — leaving the owner to absorb the cost. If they can’t, they may even be forced to sell the project.

As multiplexes become more common and more homeowners are encouraged to pursue these projects, we’re likely to see this scenario repeated. To avoid it, make sure your builder is experienced and that a BC Hydro clearance review is completed before construction begins. If that can’t be arranged, ensure that your architect and builder review the relevant safety standards themselves and agree to take responsibility if BC Hydro later issues a stop-work order. Good luck

The post A Major Pitfall in Residential Construction first appeared on John Chan Mortgages.

• Private mortgage: The rate would be around 7.49% with a 2% fee. That works out to $4,000 in fees, plus about $400 for an appraisal and $2,500 in legal costs—a total of $6,900.
• Reverse mortgage: The rate would be around 6.59% with a flat $1,000 fee. The appraisal and legal fees would be about the same, but the setup fee is fixed at $1,000 regardless of the loan size. That’s already a savings of roughly $3,000 compared to the private option.

Another key advantage of a reverse mortgage is flexibility. Once approved, the borrower can qualify for the maximum loan amount—in this case, roughly $900,000—and access funds later without paying setup, appraisal, or legal fees again. By contrast, with a private mortgage, each additional loan would require repeating the entire process, including the 2% fee, appraisal, and legal costs. This flexibility provides peace of mind if unexpected expenses arise, such as medical costs.

Some people worry about the loan balance growing over time. Keep in mind that with a reverse mortgage, there is an option to pay off interest if that’s a concern. However, as shown in the chart below, the size of the loan does not become significant relative to the home’s value. The yellow area represents the loan, while the grey area represents the home’s value, assuming 3% annual appreciation and a 6.59% interest rate.

Reverse mortgages are a specialty product—not a one-size-fits-all solution. In most cases, they will be a better option than a private mortgage, thanks to lower rates and fees. That said, a reverse mortgage is still an unlikely choice overall, and it may not fit every situation. This is where a knowledgeable mortgage broker becomes invaluable: they can walk you through the numbers, compare your options, and help determine whether a reverse mortgage truly makes sense for you.

The post Debt Consolidation and Seniors first appeared on John Chan Mortgages.

The first step is to make sure your income covers all your expenses. Ideally, you should also be saving a little each month—but then again, ideally I’d be eating a well-balanced diet and working out a couple of hours a day. So, do the best you can.

Trouble arises when you’re covering some of your monthly expenses with credit cards. This is the first warning sign. Take a close look at your spending and see if there are things you can cut, even temporarily. Then see if you can increase your income, whether through overtime or a side gig.

If you still can’t balance the budget and you own a property, one option is to refinance your home. That means going to the bank and taking out a larger mortgage to cover your debt. This usually makes financial sense since mortgage rates are typically much lower than other types of debt. I recently saw a credit card notice saying the interest rate was going from 20% up to 23% or even 25%. How are they not making enough at 20%?! Argh! But I digress.

Refinancing can reduce your monthly payments—and sometimes by a lot. It’s tempting to spend the extra cash, but that’s not the best strategy. When you swap out 20% credit card debt for a 5% mortgage, you save money, but remember: you’ve just stretched that debt out over 25 years (or whatever your amortization is). The smart move is to use your savings to pay down the extra mortgage amount as quickly as possible.

But what if your bank or mortgage broker says you don’t qualify for refinancing, and instead offers a private mortgage or “equity loan” for debt consolidation? Should you take it? Whether you actually save money depends on the details. The monthly payment may be lower—and that’s what the broker will emphasize—but once you factor in broker fees, lender fees, and legal costs, you may not come out ahead. In this situation, the only reason to proceed is if you’re about to start missing payments. Missing payments will wreck your credit and push you deeper into the financial doom loop.

That’s why it’s important to look at your finances early: the further along you are in the process, the fewer good options you’ll have. Banks love to lend you money when you already have plenty. Not so much when you don’t.

You can dive deeper into this subject by clicking the alternative lending icon below. Give me a shout if you need help with any of this.

The post Is Refinancing the Right Move for Your Debts? first appeared on John Chan Mortgages.

What is certain is that prices fell last month. As shown in the table below, all housing segments declined by more than 1% month over month, with townhomes dropping close to 2%. This represents the steepest monthly decline in over a year. One likely explanation is that sellers, eager to finalize their living arrangements before the school year, lowered prices to secure the sales.

The sales-to-active listings ratio also fell across all housing categories, signaling weaker demand. This ratio measures the balance between supply and demand in the real estate market: the higher the ratio, the stronger the demand. A sustained reading below 12% is considered weak and often results in downward pressure on prices. Changes in the direction of this ratio can also be predictive of future price trends, and the recent price declines likely reflect the reduced demand.

Looking ahead, the Bank of Canada and the U.S. Federal Reserve will meet in mid-September to decide on their respective interest rates. Current polls suggest Canada has roughly a 70% chance of cutting rates, while the odds of a Fed cut are closer to 90%. I don’t expect these meetings to produce a major shift in real estate activity.

Perhaps more impactful news comes from the Supreme Court of British Columbia’s recent ruling that the Cowichan First Nation, along with several allied First Nations, holds rights to a parcel of land in Richmond almost twice the size of Stanley Park. This area currently includes commercial properties, residential properties, and a federally operated port. If the ruling withstands legal challenges, it could dampen foreign investment—not only in residential real estate but in commercial property as well, which is not currently subject to restrictions. The issues and reasoning behind this decision are complex, but you can find a good introduction by clicking the image below.

This ruling is also timely, as September 30 marks the National Day for Truth and Reconciliation—a reminder that gives us much to reflect on.

Enjoy the rest of the month.

The post August 2025 Vancouver Real Estate Review first appeared on John Chan Mortgages.

The blue line represents the seasonally adjusted CREA (Canadian Real Estate Association) composite benchmark for a typical home in Canada. According to this measure, prices peaked around 2022 and have since corrected.

However, if you live anywhere outside of BC and Ontario, your local real estate prices are actually near record highs. That means the so-called “average Canadian home price” trend is largely meaningless for anyone living beyond those two provinces. This is why when you are looking for actionable information, you must dive into the local market data.

The post What is the Meaning of Canadian Real Estate Prices first appeared on John Chan Mortgages.

When the lease expires, you (or the strata) will have to renegotiate with the landowner—if they even want to renew. Conventional advice is to ensure there’s an option to renew in the lease agreement, but here’s what most people don’t consider: even if renewal is possible, the terms may be unaffordable. Think about how much time has passed since the start of the lease and how much land values have risen. Even a “fair” market rate could mean a massive increase in ground rent and renewal fees. And if the landowner can make more money selling or redeveloping, why would they offer you favourable terms? At the end of the lease, you should expect to get little or nothing back—even if your mortgage is paid off.

I have a friend who says they’re not worried because they don’t plan to move and have no children to inherit anything. I’d argue that’s short-sighted. As you get older, you might find that a three-storey townhouse is risky to navigate and that single-level living would be more practical. If your property had appreciated with the market, you could sell it and trade up—or trade down—to something better suited to your needs. You could also sell it to help fund a retirement home or cover medical expenses.

So, unlike what the ad/article claimed, leasehold is not a savvy way to “get into the market,” and no, the property will not appreciate like a freehold. Buyers, beware. Below is a rough guide as to how the professionals think about the value of a leasehold.

The post The Truth About Leaseholds first appeared on John Chan Mortgages.

The gist of their letter: the construction business is struggling, and bringing foreign investors back into the market would help deliver more housing supply two to three years from now.

“In the absence of foreign investors, fewer projects will meet presale financing thresholds, suppressing supply delivery, which serves no one in a housing crisis as projects will not start.”
 
 “While we understand that the ban was implemented to protect housing supply for Canadians, it has unfortunately impacted the construction industry.”

In short, their argument is this: without foreign buyers, current projects won’t get off the ground, leading to job losses now and a housing shortage later.

While I can sympathize with any business wanting to protect its bottom line, but this doesn’t make sense. We’ve already established that foreign buyers are a major reason housing prices became so unaffordable for ordinary Canadians in the first place. Asking the government to reopen the market to foreign investors means letting them bid up prices again — so developers can continue to make money? What’s the point of adding more units in two to three years if hardly anyone here can afford to buy them?

Thankfully, the Premier and Housing Minister weren’t persuaded.

“We don’t want to go back to the days when foreign investors were buying up empty condos and leaving neighbourhoods empty and pushing up the prices for people and families.”

The government seems to recognize that we went down the wrong path. For too long, BC’s economy was addicted to foreign real estate investment as a source of growth, building an entire market around it. Now that we’re trying to take a different path, there will be adjustment pains. Withdrawal from any addiction is uncomfortable — but in the long run, it’s the right move.

And honestly, the situation may not be as dire as developers suggest. While presales for condos might be slowing, purpose-built rental construction is on the rise, which means construction workers will still have plenty of work. Two or three years from now, there may be fewer units for sale — but there will be more to rent. Given current prices, that’s not a bad thing. A large increase in rental supply could push rents down, which in turn might cool investor demand and eventually bring home prices down.

Another encouraging trend: about a third of all land purchases by dollar value are now for multiplex developments. Vancouver’s new zoning rules — allowing up to six units on a single residential lot — are finally catching on. Homeowners are converting single-family houses into multiplexes. For some, this means creating homes for their children; for others, it means selling off units for profit. This shift encourages more smaller-scale construction projects and potentially spreads economic benefits more evenly. Instead of profits being concentrated among a handful of big developers, more small builders can share in the gains. Housing will remain a key part of BC’s GDP, but the shape of the market is shifting — and that’s a good thing.

The post BC Developers are Asking to bring Back Foreign Buyers first appeared on John Chan Mortgages.

As you can see from the table below, the sales-to-active listings (STAL) ratio for detached homes and apartments rose slightly. The STAL ratio measures supply and demand in the real estate market: an increasing ratio means sales are growing faster than total inventory. While this is a positive sign, it’s starting from a very low base. Demand remains weak, and in fact, prices fell across all categories in July. It’s still very much a buyer’s market—especially for condos—given that another 3,000 units were completed in June.

The Bank of Canada held its overnight interest rate steady at the end of July. Current trading activity suggests the Bank is unlikely to cut rates at its next meeting, as it appears to be waiting for clearer signs of a cooling economy. The next interest rate decision is scheduled for September 17.

Enjoy the rest of the month.

The post July 2025 Vancouver Real Estate Review first appeared on John Chan Mortgages.