Hi, it’s Cari Mai and this is your Vancouver real estate market update for March 2025.
Market Activity Stalls After Months of Gains ⚖️
After four straight months of improving sales since October, last month definitely hit the brakes. Home sales in February were down 12% compared with February 2024 — and 29% below the 10-year seasonal average.
More Listings, More Options for Buyers 🏠
New listings for February were up 11% compared with last year — so sellers are definitely showing up. But the total number of homes listed for sale are up 32% compared to last February and 36% above the 10-year average.
So, home buyers have more options, potentially more negotiating power, and less pressure to compete in multiple offer situations. We haven’t seen this level of inventory since pre-pandemic times!
Home Prices Hold Steady Despite Market Pressure 🤝
The MLS benchmark price sits at $1,169,000 — which is just over a 1% decrease from last February and a small 0.3% drop from January 2025.
So, prices are holding pretty steady, but they’re softening slightly under the pressure of increased supply and cautious buyer activity.
Basically, we’re not seeing a major price correction — but the market is definitely feeling the pressure.
Tariffs Shake Up the Market 💰
On March 4, the U.S. officially imposed tariffs on Canadian exports — and Canada retaliated with a series of targeted tariffs in response.
This trade war is expected to weigh heavily on economic output and consumer spending — and it’s already shifting housing market activity.
Spring Market Outlook – A Slower Season Ahead? 🌸
Normally, we’d expect to see market activity ramping up as we head into the busy spring season — but this year, buyers and sellers are more cautious. The weight of uncertainty from the tariffs and trade tensions could keep them on the sidelines for longer.
Bank of Canada Cuts Rates to Offset Pressure 🏦
To help offset some of this pressure, the Bank of Canada cut its policy rate by 25 basis points on March 12, bringing it down to 2.75%.
Lower rates should improve borrowing conditions and potentially support housing demand — but economists are warning that if the trade war escalates, we could see even deeper cuts later this year.
Tips for Sellers – Stand Out in a Competitive Market!
If you’re planning on selling a home, pricing strategically and understanding market trends is going to be key to standing out in a market with higher inventory and more cautious buyers.
Want a Personalized Market Breakdown? 📝
If you’re wondering how this all plays out in your neighborhood, I’d be happy to give you a personalized breakdown of what’s happening in your market.
That’s all for this month! If you have any questions about what you just heard, feel free to reach out.
