Welcome to 2025! January kicked off the year with strong momentum, reflecting a continuation of the positive trends seen in the last quarter of 2024. Sales were up, new listings surged, and optimism is returning to the market. However, the start of 2025 hasn't been without its challenges, with discussions of trade wars and political uncertainty adding new complexities. Despite this, lower interest rates and strong market fundamentals indicate a potentially active year ahead.

Key Highlights:

• Sales Growth: January sales were up 9% year-over-year.

• New Listings Surge: January saw the highest number of new listings for the month since 2012.

• Bank of Canada Eases Conditions: Lower interest rates are making homeownership more attractive.

• Trade War Uncertainty: British Columbia is expected to be the least affected by U.S. tariffs compared to other provinces.

Market Activity and Trends

January saw 1,552 properties sold in Greater Vancouver, a decrease from December (1,765 sales) but 9% higher than January 2024 and 51% higher than January 2023. Open houses and showings saw increased activity, with multiple offers occurring in some cases. The pent-up demand, held back by high interest rates in previous years, is now materializing as buyers re-enter the market.

While sales were 29% below the 10-year average, historical data suggests this level of activity is typical for January. With more interest rate reductions expected and an active spring market ahead, we can anticipate increasing momentum in the coming months.

Inventory & New Listings

The number of new listings in January was particularly notable, reaching 5,644 new listings—the highest for January in over a decade. This represents:

• 46% more new listings year-over-year.

• 67% more new listings compared to January 2023.

• 30% above the 10-year average for January.

Many sellers who held off listing their properties in late 2024 have now entered the market, some with higher listing prices in anticipation of better conditions. The total number of active listings reached 11,494, a 33% increase from January 2024, giving buyers more options.

Months of Supply & Market Conditions

Months of supply increased to 7 months in January, up from 6 months in December, reflecting the surge in new listings. This keeps the market balanced overall but with variations by property type:

• Detached homes: 11 months supply (Buyer's Market)

• Townhomes: 5 months supply (Balanced Market)

• Condos: 6 months supply (Balanced Market)

North Vancouver and Port Coquitlam remain seller’s markets, with only 4 months of supply overall. Townhomes, in particular, remain highly competitive in these areas.

Property Type Performance

• Townhome sales increased 12% year-over-year.

• Condo sales rose 13% year-over-year.

• Detached home sales remained flat, suggesting buyers are targeting lower price points.

• Inventory increases: Townhomes up 39%, condos up 37%, detached homes up 28% year-over-year.

Outlook for 2025

With interest rates expected to decline further, we anticipate a strong spring market as both buyers and sellers become more active. The next Bank of Canada rate decision on March 12th will be key in determining how quickly market activity accelerates. While global trade discussions and political uncertainties remain a factor, demand for housing in Greater Vancouver remains strong.

Final Thoughts

The 2025 market has kicked off with a mix of optimism, challenges, and renewed activity. While distractions persist, the fundamentals are aligning for increased real estate transactions. If you're considering buying or selling, now is the time to stay informed and be prepared to act as market conditions shift.

Need help navigating the market? Reach out for a personalized consultation to explore your real estate opportunities in 2025!