What the latest data shows about the Lower Mainland’s residential real estate market  

Buyers are staying on the sidelines and home prices are falling in the region’s notoriously hot real estate market.

VANCOUVER — The once red-hot housing market in B.C.’s Lower Mainland seems to be cooling.

Data provided by both Greater Vancouver Realtors (GVR) and the Fraser Valley Real Estate Board (FVREB) show significant decreases in sales year over year, with Metro Vancouver’s numbers ranking among the lowest in the past decade to start a year.

GVR reports that there were 2,228 residential sales last month, an 18.5 per cent decrease from the sales recorded in May 2024. The group also says this was 30.5 per cent below the 10-year seasonal average.

“While there are emerging signs that sales activity might be turning a corner, sales in May were below the 10-year seasonal average, which suggests that some buyers are still sitting on the sidelines or are being especially selective,” said Andrew Lis, GVR’s director of economics and data analytics.

In May, 6,620 properties came on the market – a 3.9 per cent increase year over year, and 9.3 per cent above the 10-year seasonal average for the month.

According to GVR, the composite benchmark price last month was $1,177,100, down 2.9 per cent from a year earlier and 0.6 per cent lower than in April.

Nancy Che, a Vancouver-area realtor with eXp Realty, says the past few months have been challenging, but recent weeks have been encouraging.

Chen says properties are getting more calls and even offers.

“It was very slow the last couple of months,” said Che.

“But we’re starting to see buyers actually come out in the last couple of weeks for homes that were sitting on the market for 60 days with no showings. They’re slowly getting showing requests.”

This trend is also emerging in the Fraser Valley.

The regional realtor boards’ data for May shows 1,183 sales, up 13 per cent from April.

Board chair Tore Jacobsen told CTV News that although modest, it could signal that buyer confidence is growing in the area.

However, he says sales were 22 per cent below May of last year and 36 per cent below the 10-year seasonal average.

Overall inventory also expanded in May, with 10,626 active listings, an increase of 34 per cent year over year and 54 per cent above the 10-year seasonal average.

“High inventory in the Fraser Valley is giving buyers more choice, but it also means sellers are facing more competition,” said Jacobsen.

“We’re seeing that homes priced appropriately for today’s market are selling, while sellers who aren’t in a rush are choosing.”

FVREB data shows the composite benchmark price in the Fraser Valley decreased one per cent in May, to $963,200.

UBC Sauder School of Business associate professor Thomas Davidoff says the market has stalled for several reasons, including economic uncertainty and lower foreign investment.

“The market has been facing headwinds of a lot of condo completions, a slowdown in immigration and higher interest rates than those that prevailed when the market was really cooking,” said Davidoff.

“All of those factors seem set to continue. Lower interest rates are one thing on the horizon that might change.”

The Bank of Canada is expected to make an interest rate announcement on Wednesday.