GST Rebate, Short-Term Rental Reform, CondoDay, Granville Plan
Housing activity continued to soften in May, with the fewest home sales for the month in two decades outside of May 2020 and the highest resale condo inventory levels in 15 years. Residential sales totaled 2,228, an 18.5% decline from May 2024 and 30.5% below the 10-year seasonal average. The total number of properties listed for sale rose 25.7% year-over-year to a 10-year high of 17,094.
The sales-to-active listings ratio stands at 13.4%, favouring buyers, yet buyers remain hesitant as inventory builds. By property type, the ratio is 10.2% for detached homes, 17.4% for attached, and 14.7% for apartments. Benchmark prices had a modest year-over-year decline with detached homes at $1,997,400 (down 3.2%), apartments at $757,300 (down 2.4%), and townhouses at $1,106,800 (down 3.4%)—the only segment that had a month-over-month price increase at 0.4%.
New condo sales in Greater Vancouver overall were down 84% in Q1 2025, compared to the height of the bull market in Q1 2022, according to Altus Group. It's a more dire situation in Toronto, Canada's largest urban center, where new home sales plummeted 72% year-over-year, with only 310 units sold—105 of them condos—the lowest on record! Inventory levels in Toronto surged to 21,363 units, equating to 15 months of supply, well above the balanced market range of 4 to 6 months.
Factors contributing to this downturn include tariff uncertainties, persistent unaffordability, rising unemployment, and migration of prime-aged workers to other provinces. Investor demand has collapsed after making up more than 35% of the market over the past five years. Many sellers still expect peak 2021/22 prices, while buyers are either sidelined or being extremely selective. Year-to-date, sales in 2025 are among the slowest starts in the past decade. Whether the second half of the year brings a meaningful rebound remains to be seen.
The sales-to-active listings ratio stands at 13.4%, favouring buyers, yet buyers remain hesitant as inventory builds. By property type, the ratio is 10.2% for detached homes, 17.4% for attached, and 14.7% for apartments. Benchmark prices had a modest year-over-year decline with detached homes at $1,997,400 (down 3.2%), apartments at $757,300 (down 2.4%), and townhouses at $1,106,800 (down 3.4%)—the only segment that had a month-over-month price increase at 0.4%.
New condo sales in Greater Vancouver overall were down 84% in Q1 2025, compared to the height of the bull market in Q1 2022, according to Altus Group. It's a more dire situation in Toronto, Canada's largest urban center, where new home sales plummeted 72% year-over-year, with only 310 units sold—105 of them condos—the lowest on record! Inventory levels in Toronto surged to 21,363 units, equating to 15 months of supply, well above the balanced market range of 4 to 6 months.
Factors contributing to this downturn include tariff uncertainties, persistent unaffordability, rising unemployment, and migration of prime-aged workers to other provinces. Investor demand has collapsed after making up more than 35% of the market over the past five years. Many sellers still expect peak 2021/22 prices, while buyers are either sidelined or being extremely selective. Year-to-date, sales in 2025 are among the slowest starts in the past decade. Whether the second half of the year brings a meaningful rebound remains to be seen.
CMHC Mortgage Consumer Survey Highlights
CMHC released their 2025 Mortgage Consumer Survey, noting renewals are still the leading mortgage transactions. 12% of respondents were first-time homebuyers, up from 10% in 2024. 35% of these buyers lived with friends or family before purchasing, while 64% rented for an average of 6.3 years prior to buying. Additionally, over a quarter of mortgage consumers have a secondary suite, with about 10% planning to add one.
Gifts or inheritance remained a big component of the down payment, however, there’s a growing concern as more consumers report difficulties in maintaining debt payments (51% in 2025 compared to 42% in 2024). Causes for concern over defaulting were mainly based on economic reasons (cost of living increases, recession fears, increase in interest rates).
Gifts or inheritance remained a big component of the down payment, however, there’s a growing concern as more consumers report difficulties in maintaining debt payments (51% in 2025 compared to 42% in 2024). Causes for concern over defaulting were mainly based on economic reasons (cost of living increases, recession fears, increase in interest rates).
Changes to FTHB GST rebate on new housing
The federal government has introduced a new GST rebate to make it easier for first-time home buyers to afford a new home. Announced on May 27, 2025, the First-Time Home Buyers’ GST Rebate allows eligible buyers to recover up to $50,000 in GST on new homes, including those bought from builders, owner-built homes, or co-op housing units. The rebate fully applies to homes priced up to $1 million, with a phased reduction between $1 million and $1.5 million, and no rebate for homes over $1.5 million. To qualify, at least one buyer must meet the first-time buyer criteria and intend to use the home as their primary residence.
- Applies to agreements signed on or after May 27, 2025 and before 2031.
- Construction must begin before 2031 and be substantially completed by 2036.
- Buyer must be 18+, a Canadian citizen or permanent resident, and not have owned a home in the past four years.
- Rebate is limited to one per lifetime, and not available if your spouse or partner has already used it.
- Not available for homes under purchase agreements dated before May 27, 2025 (even if reassigned).
BCREA pushes for short-term rental reform
The BC Real Estate Association is calling on the provincial government to revisit and refine its Short-Term Rental Accommodations Act in light of economic impacts, tourism demand, and local community needs. While supporting the goal of increasing long-term rental housing, BCREA recommended the following key changes:
- Return Zoning Autonomy to Local Governments: Current exemption rules based on 3% vacancy rates are too restrictive. Municipalities like Parksville and Prince George illustrate how one-size-fits-all policies fail to reflect local realities.
- Expand Exemptions for Strata Hotels & Fractional Ownership: Many of these properties were built for tourism and seasonal use, not long-term living. The current exemption process is overly complex and excludes many buildings that should qualify.
- Healthcare Hub Exemptions: Communities near hospitals and treatment centres rely on STRs for travelling patients and healthcare professionals. BCREA suggests geographic exemptions similar to those used in transit-oriented housing policy.
- Film & TV Industry Relief: Production crews require flexible short-term housing. STR restrictions have strained hotel inventories and increased costs, risking the viability of future film projects in BC.
With domestic tourism expected to rise this summer, BCREA argues that thoughtful adjustments to STR regulations are essential to protect both housing goals and BC’s broader economic health. The provincial government hasn't shown any signs of leniency as the new restrictions aim to crack down on illegal listings. As of May 1, 2025, all short-term rental hosts in B.C. should have registered their listings and received a provincial registration number. To date, more than 20,000 listings have been registered:
- As of June 2, 2025, if a short-term rental listing does not have a valid registration number, platforms must stop advertising the listing and prevent new bookings from that host or face a possible investigation and potential monetary penalty. This date was previously May 1.
- As of June 23, 2025, platforms must cancel all future bookings from hosts without a valid provincial registration number or face a possible investigation and potential monetary penalty. This date was previously June 1.
CondoDay
Real estate strategist and marketer, Cam Good, held a flash sale on newly built Surrey City Centre condos by slashing prices 25%. It drew in a crowd of around 200, and sold nearly all of the 78 homes available. "We hope more developers are inspired by this program and explore creative ways to help buyers get into the market," said Good on the bulk flash sale model, a tactic rarely used in today's high-priced housing market. You can keep an eye on future deals on the CondoDay website here: https://condoday.ca.
Vancouver City Council approves the Granville Street Plan
The Granville Street Plan is a comprehensive 20-year strategy aimed at transforming Granville Street into a vibrant, pedestrian-friendly destination that honors its cultural heritage while promoting economic growth and public safety.
- Pedestrianization and Public Space Enhancements: The plan envisions converting sections of Granville Street into a pedestrian-only zone, creating dynamic public spaces for community gatherings, performances, and events.
- Land Use and Development: The strategy focuses on mixed-use developments that incorporate rental housing, hotels, cultural venues, and retail spaces. Notably, the Bridgehead area (Drake to Davie Street) is targeted for revitalization with new residential and hotel projects replacing aging single-room occupancy (SRO) buildings.
- Cultural and Entertainment District: The Entertainment Core (Davie to Smithe Street) will be reinforced as the city’s nightlife hub, with support for live music venues, theaters, and arts spaces. The plan includes policies to preserve and enhance existing cultural institutions.
- Transit and Mobility Improvements: To accommodate the pedestrian-focused vision, bus routes will be redirected to Howe and Seymour Streets, with infrastructure upgrades to ensure efficient transit service and improved pedestrian connectivity.
- Community Engagement and Feedback: Public consultations revealed strong support for the proposed directions, with 76% of respondents agreeing with the key moves. Residents emphasized the importance of safety, cleanliness, and the inclusion of family-friendly activities.