More listings are showing that home prices are dropping around Metro Vancouver, and a real estate report is attributing some of the decreases to rising inventory levels in the region.
According to a new report from Royal LePage, the aggregate price of a home in Greater Vancouver decreased by 2.6 per cent to $1,218,600, year-over-year, in the second quarter of 2025.
That marks a 0.9 per cent decrease in the region on a quarterly basis.
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The most significant decrease for specific home types was for single-family detached homes, which decreased 2.4 per cent year-over-year to $1,740,400.
“The spring market has failed to gain significant momentum in Vancouver. Supply continues to far outpace demand, with the number of active listings reaching the highest level since 2008. While the market presents opportunities, buyers are showing little urgency,” said Randy Ryalls, managing broker, Royal LePage Sterling Realty.
He adds that a lot of buyers are adopting a wait-and-see approach, holding out for even better deals.
“We’ve also seen an increase in subject-to-sale offers – deals conditional on the buyer selling their own home – which continues to weigh on overall transaction volumes.”
The report also put some attention on millennials, particularly in the condo and townhome space.
“Condos and townhomes, however, have demonstrated some resilience. These segments are attracting entry-level millennial buyers, particularly units that are priced competitively and presented well.”
Unfortunately, all good things come to an end. You’ve heard the phrase, “What goes up must come down.”
Well, the national forecast calls for the opposite as Royal LePage expects home prices to increase 3.5 per cent in Q4.
Royal LePage
Still, for now, affordability is improving in Canada’s most expensive markets, like Toronto and Vancouver. Royal LePage has also adjusted its forecast to account for the slower-than-usual sales activity in Ontario and B.C.
Royal LePage stacked the home price decreases against national wage increases.
“Housing affordability has already begun to improve. Wage growth is outpacing home price gains in many markets, and borrowing costs have eased over the past year. But these gains remain fragile – sustainable affordability hinges on our ability to significantly boost Canada’s housing supply over the long term,” said Royal LePage president and CEO Phil Soper.
Near the end of the last quarter, activity began to pick up, which Royal LePage says could signal that market momentum is shifting. For Greater Vancouver specifically, Royal LePage is forecasting a 1.5 per cent increase in the aggregate price of a home in Q4.
Ryalls adds that the market is currently in a correction phase.
We’re also expecting a report on luxury Vancouver home listings later this week, another market sector that has been seeing a significant lull here locally, more than anywhere else in Canada.
Are you a millennial who has bought a home within the year? What sparked your decision to close the deal? Was it because prices were coming down or something else? Let us know in the comments. And if you’d like to share your homebuyer journey story, email vancouver@dailyhive.com.