May 2025 Market Insights
I've been closely tracking our real estate market, and May certainly brought some fascinating developments. What I'm seeing is a market that's really shifting, offering new dynamics for both buyers and sellers.
From my vantage point, the most significant change has been the surge in inventory levels, hitting a remarkable 10-year high. This is a game-changer! While we saw 2,228 home sales in May, which is down 19% from last year and 31% below our 10-year seasonal average, the sheer number of available homes tells a compelling story. We had 6,620 new listings, putting us at roughly 17,100 homes for sale by month-end—that's a whopping 46% above the seasonal average. More homes mean more choice for buyers, and that's something we haven't seen in a while.
This increase in supply means that as a seller, I'm advising my clients that they're likely going to need to adjust their price expectations. The days of multiple offers on every property are less common in this climate. Conversely, if you're a buyer, this is excellent news! You now have more negotiating power, which is a significant advantage. The sales-to-active listings ratio really illustrates this: it sat at 13% for all homes in May. For detached homes, it was 10%; for townhomes, 17%; and for apartments, 15%. Historically, anything below 12% indicates downward pressure on prices, while above 20% suggests upward pressure. We're currently in a balanced market, which truly benefits those ready to make a move.
When we look at the numbers, the benchmark price for all housing types in Metro Vancouver was $1,177,700 in May, showing a 3% decrease from last year. Digging deeper:
- Detached homes averaged $1,997,100.
- Townhomes were at $1,16,600.
- Apartments came in at $757,400.
These figures reflect the shift we're experiencing. While prices aren't plummeting, they are certainly moderating, creating a more accessible entry point for some.
Looking ahead, I believe we're in one of the slowest sales periods of the last decade, similar to 2019 and 2020. What I recall from 2020 is a significant rebound in the latter half of the year. Whether 2025 follows a similar trajectory remains to be seen, but the current climate is certainly buyer-friendly. My advice? If you've been waiting for more options and a bit more leverage, now might just be the time to act.
Let's connect and discuss how these market updates might impact your real estate goals.
Imran Ali
The Ali Group
📧 [email protected]
📞 604-616-555
