Market Turning a Corner, Foreign Buyer Ban Reform, Rents Easing

July brought encouraging signs that the Greater Vancouver housing market may finally be turning a corner. Home sales climbed 5% from June to 2,286 units—the highest monthly total we’ve seen so far this year—and are now just 2% below July 2024. While sales remain 14% below the 10-year seasonal average, this steady improvement from earlier months signals growing buyer confidence, especially as borrowing costs stabilize and price adjustments settle in.

Active listings dipped slightly to just over 17,000 homes, remaining about 20% higher than last year at this time. New listings held steady, reflecting seller hesitation amid softening prices. This supply continues to give buyers plenty of options, preventing rapid price increases. Yet the first month-over-month inventory decline since 2022 suggests the market is slowly rebalancing. If inventory continues to tighten, we could see price stabilization or even modest gains later this year.

The benchmark price currently sits at $1,165,300 for Metro Vancouver, down 2.7% year-over-year and 0.7% since June. Detached homes and condos remain under downward pressure due to abundant supply and cautious buyers. Townhomes buck the trend slightly—sales increased 5% year-over-year despite a small price dip—indicating demand for more affordable options. Overall, price declines have slowed and appear to be approaching a floor as supply and demand start to find a balance.

Outside the core, several suburban areas are outperforming. Burnaby and New Westminster posted sales increases of 30-40% compared to June, accompanied by tightening inventory. North Vancouver is edging closer to seller’s market conditions as supply falls and sales hold steady. The Tri-Cities region—especially Port Coquitlam—stands out with a 47% sales jump from June and months of inventory dropping to just four, signaling a meaningful shift. Conversely, Vancouver West and Richmond still face challenges, with slower sales and persistent oversupply.

The Fraser Valley market in seasonal slowdown

Heading East, home sales reached 1,190, a slight 0.5% dip from June and 3% lower than last year, sitting 23% below the 10-year monthly average. Inventory stayed high, with active listings down 2% from June to 10,650—still about 50% above the seasonal norm. New listings eased 5% to 3,453. With a sales-to-active listings ratio of just 11%, the market remains firmly in buyer’s territory. On average, detached homes and condos sold in 38 days, while townhomes moved a bit faster at 35 days.

Prices continued to soften across all property types. The composite benchmark price for the Fraser Valley dropped 0.7% in July to $944,800. Detached homes fell 0.5% from June to $1,451,100, down 5.1% year-over-year. Townhomes saw a steeper monthly decline of 1.2% to $814,900, which is 4.0% lower than last year. Apartment prices slipped 1.4% to $519,300, marking a 5.8% annual decrease. Overall, the data points to a softening market where buyers have the upper hand amid abundant inventory and cautious seller pricing.

Ottawa under pressure to loosen foreign homebuyer ban

In late July, 26 major B.C. real estate firms called on Ottawa and Victoria to ease Canada’s foreign buyer ban and B.C.’s additional tax on non-resident buyers. They propose an Australian-style model, where foreign buyers can purchase only new builds, pre-sales, or vacant land, arguing this would boost pre-construction sales—a critical factor for securing development financing.

The industry’s case is straightforward: without more capital, new housing starts will keep falling. The federal ban, in place since 2023 and extended to 2027, has overwhelming public support—76% nationwide, cutting across party lines. Still, pressure is mounting as developers in Ontario and B.C. grapple with record-low pre-construction sales, swelling unsold inventory you typically don't see on the MLS® (13,000 new condos in Greater Vancouver alone), and stalled project launches. Whether policy makers will bend before 2027 remains an open question.

Rents continue to ease in BC

According to rentals.ca, in July 2025, British Columbia recorded one of the largest rent declines in Canada, with average asking rents for purpose-built and condo apartments down 3.1% year-over-year to $2,472. Over the past two years, rents have fallen by the same margin—a rare dip in a market long known for high costs—though they remain 6.2% higher than three years ago. The slowdown is most evident in smaller units, with one-bedroom rents dropping 4.7%, while three-bedroom units rose 6.0%, likely due to stronger demand from families or shared households. Vancouver led the decline among Canada’s major cities with a 7.0% annual drop and is the only major market to post a three-year decrease, down 3.9%.

Not all parts of B.C. are cooling. Abbotsford posted the second-fastest rent growth in the country at 8.9% year-over-year, while Nanaimo saw a modest 1.6% increase. North Vancouver remains the province’s most expensive rental market at $3,084, followed by Richmond ($2,769), Coquitlam ($2,700), and Burnaby ($2,642). Overall, the data suggests the B.C. rental market is rebalancing, with high-priced urban cores softening while more affordable, commuter-friendly cities continue to draw demand.