Listing Cancellations, Rents Capped at 2.3%, Dubai Boom

With fall approaching, Metro Vancouver’s housing market is stabilizing, though momentum is slowing. Sales are improving, particularly in higher price segments, while inventory remains elevated. Sellers are adjusting expectations, creating conditions that keep values in check and give buyers more options, though properties still require competitive pricing to move.

There were 1,959 residential transactions recorded last month, a 2.9% increase compared to August 2024, though activity remained 19% below the region’s ten-year seasonal average. On the supply side, 4,225 new listings came to market, putting overall inventory at 16,242 homes. That’s nearly 18% higher than last year and well above long-term norms.

The sales-to-active listings ratio stood at 12.4% overall, with detached homes at 9.3%, townhomes at 15.8%, and apartments at 14.0%. Ratios at these levels indicate conditions that lean toward balanced to soft, particularly for detached properties. Prices moved down across all categories. The composite benchmark price is now $1,150,400, a 3.8% decline from last year and 1.3% lower than in July. Detached homes are at $1,950,300, down 4.8% year over year, while townhomes and apartments are at $1,079,600 and $734,400, representing annual decreases of 3.5% and 4.4% respectively.

What stands out is that sales in the detached and attached segments are more than 10% higher than a year ago, pointing to renewed activity in higher price brackets. At the same time, prices have eased about 2% since the start of the year and 1% month over month in August, showing that sellers have been adjusting expectations. As buyers and sellers come closer together on price, transaction volume has picked up. With new listings tracking close to the ten-year seasonal average and sales improving, we may start to see inventory tighten in the months ahead. If that happens, the current window of strong opportunity for buyers could narrow as we move into the fall.

Fraser Valley firmly in buyer's market

It's a different story in the Fraser Valley, as the region saw home sales fall 13% over last year and 20% month over month. Last month's sales were 36% below the 10-year average, signalling a strong buyer's market with an overall sales-to-active listings ratio at 9%. Current market conditions are allowing buyers the opportunity to make bold offers, especially for properties that have been on the market for a while and where sellers may be more motivated.

In the Fraser Valley, benchmark home prices continued to edge down in August. The composite Benchmark price fell 0.9% from July to $936,200. Detached homes saw the sharpest decline, with the Benchmark price dropping to $1,436,800—down 1% month-over-month and 5.7% compared to last year. Townhomes followed a similar path, dipping 0.9% from July and 4.5% annually to $807,800. Apartments posted the largest year-over-year decline, with the Benchmark price falling to $514,100, down 1% from July and 5.9% from August 2024. There's now more than 10 months of inventory for sale in the Fraser Valley condo market.

Sellers across Canada cancelling listings at near record high

Home sellers in Canada are cancelling listings at a rapid pace as they fail to get their prices. In July, more than one in five listings—about 22.5%—were canceled, marking one of the highest withdrawal rates on record. While similar percentages were seen during the market slowdown in 2022, today’s volume is even greater given the higher number of active listings overall.

Rather than lower their prices, many sellers are choosing to step back and wait, hoping conditions will improve or interest rates will ease in the months ahead. But with a steady flow of new listings and completions entering the market, waiting carries its own risks—by the time they relist, competition could be even stronger.

For buyers, this creates a unique window of opportunity. As sellers retreat, motivated listings stand out more, giving buyers room to negotiate and potentially secure homes under market value. For sellers, the trend is a reminder that adjusting expectations early can often be a better strategy than pulling back and waiting for uncertain market shifts.

BC sets 2026 rent increase cap at 2.3%

The BC government has set the maximum allowable rent increase for 2026 at 2.3%, a step down from the 3.0% limit in 2025. The cap is tied directly to the province’s inflation rate, which has eased over the past year. This makes 2026 one of the few times in the last two decades where the permitted increase is this low, a clear sign of the shifting economic environment.

For tenants, the 2.3% cap in 2026 means rent hikes will be limited, offering some short-term relief as overall housing costs remain a challenge. But for landlords, the reality is tougher—most expenses, from taxes to insurance to maintenance, are rising faster than 2.3%. That gap makes holding rental property less profitable, especially for small owners without scale.

The rules leave little room to adjust. Rent can only go up once a year with three months’ notice, and increases beyond the cap are only allowed in rare cases like major repairs. For many landlords, that means absorbing higher costs or passing on upgrades, while tenants benefit from controlled increases regardless of the owner’s bottom line. The implication is clear: renters get predictability, landlords get squeezed. Over time, that pressure could discourage investment in rental housing, limiting supply and putting more strain on affordability overall.

Dubai boom

If Metro Vancouver’s housing market is cause for concern, Dubai presents a compelling alternative. The UAE’s property market is "sizzling", attracting global investors seeking tax advantages and high rental yields. With no property or capital gains taxes, Dubai offers a more favorable environment for real estate investment. Additionally, the UAE provides clear pathways to residency through property ownership, such as the Golden Visa for investments over AED 2 million. Dubai’s dynamic market and investor-friendly rules make it a serious alternative for anyone eyeing diversification, or a change of scenery.