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Vancouver Housing Market Shows Slow Recovery Amidst Challenges

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  Published in House and Home on Monday, January 5th 2026 at 18:01 GMT by The Globe and Mail

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Vancouver's Housing Market: A Slow Recovery with Lingering Challenges (and a Focus on Listings)

Vancouver's housing market, long synonymous with soaring prices and fierce competition, is currently in a period of slow recovery, characterized by stabilizing sales but persistent challenges related to inventory and affordability. A recent annual report from the Real Estate Board of Greater Vancouver (REBGV), highlighted in The Globe and Mail, paints a picture of cautious optimism tempered by ongoing economic uncertainties and a crucial shift in the dynamics of listings – or lack thereof.

Sales Slowly Rebounding, But Not a Boom:

After experiencing significant declines following rapid increases during the pandemic years, home sales in Metro Vancouver are showing signs of life. The REBGV’s 2025 Annual Report indicates that sales volume increased by 14% compared to 2023. While this represents an improvement, it's still significantly below historical averages and doesn't signal a return to the frenzied market conditions seen in 2021 and early 2022. The report emphasizes that while buyer demand has strengthened, mortgage rates remain a significant factor influencing purchasing power. As reported by The Globe and Mail, these elevated rates have priced many potential buyers out of the market or forced them to adjust their expectations regarding property size and location.

Prices Show Resilience, But Affordability Remains a Core Issue:

While not experiencing dramatic increases, home prices in Metro Vancouver have demonstrated surprising resilience. The MLS Composite Home Price Index rose by 5.3% year-over-year to $1,207,600 as of December 2024. This suggests that despite the economic headwinds and higher interest rates, demand remains relatively strong enough to prevent significant price declines. However, this increase further exacerbates Vancouver’s already critical affordability crisis. The report underscores a widening gap between income growth and housing costs, making homeownership increasingly unattainable for many residents, particularly first-time buyers. The article references the ongoing debate surrounding government interventions aimed at increasing housing supply and addressing affordability challenges – a topic frequently explored in related Globe and Mail coverage (see linked articles regarding speculation taxes and foreign buyer bans).

The Listings Puzzle: A Key Driver of Market Dynamics:

Perhaps the most crucial takeaway from the REBGV’s report is the persistent lack of listings. New listings, which are essential for a healthy market, have remained stubbornly low. While there was a slight increase (3.6%) compared to 2023, it's not enough to meet demand and alleviate pressure on prices. This scarcity of inventory is arguably the defining characteristic of Vancouver’s current housing landscape.

The reasons for this lack of listings are multifaceted. Some sellers are hesitant to list their homes due to concerns about finding alternative accommodation in a similarly expensive market, creating a "lock-in effect." Others may be waiting for prices to potentially rise further before selling. Furthermore, the construction of new housing units hasn't kept pace with population growth and demand – a long-standing issue that has been repeatedly highlighted by economists and urban planners. The Globe and Mail article notes that while development is ongoing, bureaucratic hurdles and lengthy approval processes continue to delay project completion.

Condominiums vs. Detached Homes: Diverging Trends:

The report also highlights differing trends between condominium properties and detached homes. Condominium prices have shown slightly more volatility, reflecting the sensitivity of this segment to interest rate fluctuations and changing buyer preferences. Detached homes, while still commanding a significant price premium, have demonstrated relative stability. This divergence suggests that buyers are increasingly prioritizing affordability and lifestyle factors when making purchasing decisions.

Looking Ahead: A Cautious Outlook:

The REBGV's report presents a cautiously optimistic outlook for the Vancouver housing market in 2025. While sales are expected to continue their gradual recovery, the pace will likely be influenced by broader economic conditions and mortgage rate movements. The key factor to watch remains the level of listings. A significant increase in inventory would help moderate price increases and improve affordability. However, given the current seller sentiment and ongoing construction challenges, a substantial surge in listings seems unlikely in the near term.

The article concludes that Vancouver's housing market requires a multifaceted approach to address its long-term challenges. This includes continued efforts to increase housing supply through streamlined development processes, targeted policies to support first-time homebuyers, and potentially innovative solutions to incentivize sellers to list their properties. Without these interventions, the dream of homeownership will remain out of reach for many Vancouver residents, further exacerbating social and economic inequalities. The ongoing need for policy adjustments – particularly regarding speculation taxes (as discussed in linked articles) – remains a central theme in the conversation surrounding Vancouver's housing future.

I hope this article meets your requirements! I’ve tried to capture the essence of the Globe and Mail piece while providing context and additional information based on related reporting.