While sales remain below the elevated levels seen during the post-pandemic surge years, the direction of the market is what matters most and February showed measurable improvement in nearly every key indicator. We just need more of that improvement going forward.
Total residential sales in Greater Vancouver reached 1,648 units, rising sharply by 49% from January and surpassing December levels as seasonal demand returned as expected. This type of early-year acceleration typically signals that underlying demand has been building quietly and is now beginning to re-engage as buyers adapt to current pricing and today’s interest rate environment.
There is still significant pent-up demand though, which will continue to impact the market when those buyers start to engage at a greater level. With sales for the month of February at the lowest since 2019, there is plenty of that pent-up demand. As interest rate renewals impact homeowners, from the extreme lows of 2021 to current rates, there will be more motivation for some to make a move.
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Markets rarely turn overnight. They stabilize first. February shows that the stabilization phase is well underway.
Kevin Skipworth
Dexter Realty
At the same time, inventory continues to expand in a controlled and constructive way. Active listings rose to 13,545 units, up 6% year-over-year and 7% month-over-month. This increase is not a sign of weakness; it represents improving choice and continued opportunities for buyers which is healthier for the market. The rapid supply shortages that defined previous cycles are giving way to a more sustainable balance between buyers and sellers.
New listings totaled 4,826 units in February, down from January partly due to the shorter month but perhaps also signaling a sign of seller exhaustion. This confirms a pattern that has been building since late 2025: sellers are not overwhelming the market.
Perhaps the most notable shift is the improvement in absorption. The sales-to-listings ratio climbed to 34%, up from 21% in January. Months of supply tightened from 11 months to eight months, still technically within buyer-leaning conditions, but moving decisively toward balance. And in some areas balance was achieved – the townhome segment more so.
Markets rarely turn overnight. They stabilize first. February shows that the stabilization phase is well underway.
A market transitioning toward balance.
One of the defining characteristics of the current cycle is structure. Unlike the volatility seen between 2020 and 2022, the market is now progressing through a far more disciplined transition. Caution best describes this market right now. Demand is not surging indiscriminately; it is returning selectively.
Buyers are active where pricing aligns with value. Sellers that are motivated are adjusting expectations accordingly. This dynamic is creating steady absorption rather than speculative spikes, which is exactly what long-term market health requires.
Across most submarkets, months of supply declined materially compared to January. This indicates that while inventory remains elevated relative to past years, in some areas, demand is beginning to catch up.
Balanced conditions are expanding geographically, particularly across the Tri-Cities and some urban markets.
Greater Vancouver sales in February were 29% below the ten-year average after January was 31% below the ten-year average. While February’s numbers appeared to be low, overall, it is an improvement from January in looking longer term. Geopolitical and economic conditions continue to weigh on the market, with local politics not helping the matter either.
The number of new listings in February were 7% above the ten-year average, after January was 19% above the ten-year average and December was 11%. Buyers take note that opportunities of abundance could be changing as sellers pull away from a buyer’s market.
Vancouver Market Strength Returning
The city markets showed strong February rebounds, particularly across both sides of the city.
- Vancouver west side: Sales increased 57% month-over-month to 298 transactions, while the sales-to-listings ratio improved to 34%. Months of supply tightened from 12 months to eight months, a meaningful improvement. Inventory remains elevated, but demand is beginning to absorb it at a more sustainable pace with sales in February closer aligned to February of last year.
- Vancouver east side: The East Side delivered one of the strongest performances in the region. Sales jumped 73% from January and 8% above last February. Months of supply fell dramatically from ten months to six months, moving firmly into balanced territory. The sales-to-listings ratio rose to 42%, reflecting strong absorption in family-oriented price ranges. This market continues to benefit from better affordability compared to the Westside.
- North Shore – tale of two markets: North Vancouver posted a 47% month-over-month increase in sales, while months of supply tightened to six months giving that area balanced market conditions. Inventory has increased year-over-year, but demand is clearly improving alongside it. The combination of lifestyle demand and limited long-term supply continues to support pricing stability. West Vancouver remains a slower-moving luxury market, though even here improvement is visible. Sales increased month-over-month, and months of supply declined slightly to 18 months. Luxury markets typically lag broader recoveries.
Beyond Vancouver.
Richmond showed modest month-over-month sales growth but continues to be a strong buyer’s market. Inventory remains elevated at 12 months of supply.
The Burnaby markets collectively showed steady improvement.
Burnaby East saw sales more than double month-over-month, while months of supply dropped sharply from 16 months to nine months. Burnaby North and South saw more moderate gains and sales-to-listings ratios up significantly from last month.
Burnaby continues to benefit from its central location and strong condo and townhome demand tied to transit-oriented development.
Sales in New Westminster surged 58% month-over-month while months of supply fell to 7 months. This market has quietly become one of the most balanced in the region, supported by strong first-time buyer demand and relative affordability.
Coquitlam posted one of the largest increases in activity, with sales rising 83% from January. Months of supply fell from 12 months to seven months—another strong indicator of market stabilization.
Port Moody continued its sluggish start to the year, with newer product on the way.
Port Coquitlam stands out as one of the strongest-performing markets this month, with a 46% sales-to-listings ratio – solidly within balanced territory. Townhouse sales surged from six to 22 in February with more sales than new listings. Mayor Brad West said that provincial policies on density have restricted townhouse development – these numbers seem to support that. Buyers should cross over the bridge into Pitt Meadows with its 13 months supply of townhomes albeit still only 40 active listings.
Ladner experienced one of the most dramatic shifts in the region. Months of supply dropped from 29 months to just six months, a rapid normalization driven by a sharp increase in sales activity. The sales-to-listings ratio jumped to 43%, demonstrating how quickly smaller markets can rebalance once demand returns. While Tsawwassen also showed improving structure, with inventory stabilizing and sales rising month-over-month.
Fraser Valley tells a similar story as Greater Vancouver.
The Fraser Valley market acted much like Greater Vancouver in February with stronger month-over-month sales and weaker month-over-month new listings, but still down from last year in both categories. With 843 sales in February, this was up 36% from January and down 8% from February 2025. February sales in the Fraser Valley were the lowest for the month of February since 2000. Surrey continues to struggle in that market, with outer areas showing more improvement in sales activity, particularly in the townhouse segment.
With the increase in sales last month, months of supply in the Fraser Valley decreased from 12 months in January to ten months in February and compared to nine months in February 2025. This is a market that continues to struggle.
The bigger picture: inventory is a feature, not a problem.
One of the most important narratives shaping the 2026 market is the role of inventory. For several years, the dominant market constraint was lack of supply. Today, that constraint has eased, but not in a way that weakens the market. Instead, it is creating opportunity. The drop in months of supply from 11 to eight across the region confirms that demand is already adjusting to this new environment. February’s performance matters because it sets the tone for the spring market.
Historically, when February shows strong month-over-month gains, as seen with the 49% increase in sales, March and April often build on that momentum. Time for buyers to spring into action!
