The market that many prospective buyers have been waiting on the sidelines for is finally taking shape. While May’s sales data may not yet reflect a full-scale turnaround, the underlying fundamentals that define opportunity in real estate are clearly in place.
Real estate in Metro Vancouver is a dinner-table conversation. And often, those conversations end up holding people back – especially in moments when they might stand to benefit the most. Social media doesn’t help either. Fear-driven YouTube thumbnails scream about the next crash, and X (formerly Twitter) posts are flooded with pessimism. It’s become an echo chamber where uncertainty feeds uncertainty.
What people often forget is that real estate – at its core – is a basic need. It’s the sense of security and comfort that comes with ownership. It’s a place to call your own, for your family to come home to. And it’s an asset that delivers long-term returns – not just financially, but in stability and peace of mind.
Inventory levels have surged to highs not seen in nearly a decade, offering buyers more choice and greater leverage in negotiations. Interest rates, once a major barrier, have begun to soften, with further cuts expected in the months ahead.
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When combined with the incentives and savings available in the new home market… the window of opportunity is wide open. The market is aligned, and the moment is ripe for making your first or next real estate move.
Manraj Dosanjh
Dexter Realty
Meanwhile, federal policy shifts are actively reshaping affordability. The removal of GST on new homes for first-time buyers, paired with extended mortgage amortization periods, means lower monthly payments, a meaningful psychological and financial shift for both entry-level and move-up buyers.
Some data points from May’s activity suggest younger buyers are already stepping in. Townhome sales rose by 14%, while one- and two-bedroom condo sales jumped by 26% and 19%, respectively, month-over-month.
Overall, total sales were up 19% month-over-month, though still down 17% compared to the same time last year, when the prime rate, which reflects borrowing costs, sat at 6.95% versus today’s 4.95%.
Inventory newer resale homes held steady from April but remains 24% higher than in May 2024.
When combined with the incentives and savings available in the new home market – whether it’s newly completed, developer-owned homes (which could reach 4,000 units by year-end), or pre-sales set to complete in 2027 and beyond – the window of opportunity is wide open. The market is aligned, and the moment is ripe for making your first or next real estate move.
Townhomes saw some movement, but remained below last year’s levels.
Townhome sales increased by 14% over the month, with 44 total home sales recorded. This represents a 27% decrease compared to the same period last year. Inventory decreased by 2% over the month but is up 30% compared to last year.
Markets such as Surrey, South Surrey and Willoughby in Langley continue to offer affordable ownership opportunities, with median list prices below $900,000. The overall market remains a buyer's market, except in Willoughby, Langley, which continues to favour sellers.
With GST exemptions now in effect for new developments, areas like Willoughby may see increased activity in new home sales compared to resale. First-time homebuyers are likely to prefer new homes over resale options if pricing remains relatively similar—especially for homes priced below $1,000,000, where savings of up to $50,000 can be claimed. This financial incentive could shift buyer demand toward new construction, potentially widening the gap between the new and resale markets.
One-bedroom condos were up overall.
Sales of one-bedroom condos increased by 26% over the month and were also up 4% year-over-year. The most notable monthly gains occurred in areas such as Richmond, North Vancouver, East Vancouver and Surrey City Centre. These markets also experienced an uptick in median sale prices.
Total inventory remained relatively unchanged month-over-month but is up 26% compared to the same time last year. Overall, the market has shifted into balanced territory, though it still leans in favour of buyers across most regions.
In May 2025, median sale prices for newer one-bedroom condos ranged from $421,500 in Surrey City Centre to $718,400 in Downtown Vancouver. This growing spread between suburban and urban pricing may increasingly influence buyer decisions, as affordability continues to reshape what – and where – first-time buyers are willing to compromise.
Two-bedroom condos also saw a bump.
Similar to the newer one-bedroom condo market, two-bedroom condo sales also posted a strong monthly increase, rising by 19%. First-time homebuyers and others targeting the condo segment may be feeling greater economic clarity now that the elections are behind us, and buyer’s market conditions across the region are creating genuine opportunities.
However, markets like Surrey City Centre and Burnaby continue to face headwinds, as a wave of new inventory from recently completed buildings puts downward pressure on absorption. Surrey City Centre currently has 147 active listings, while Burnaby is seeing nearly 400 units on the market.
With improving buyer sentiment and stable pricing, we may be witnessing the early signs of a shift in market psychology.
In May, median sale prices for newer two-bedroom condos ranged from $574,900 in Surrey City Centre to $1,384,000 in Downtown Vancouver.
Single-family homes are still facing strong headwinds.
The newer single-family home market continues to face significant challenges across the region, with just 19 total sales recorded in May 2025. With 401 active listings, this equates to a 5% sales-to-active listings ratio, firmly placing the market in buyer’s territory.
No tracked area recorded more than four home sales over the month. Sales fell 16% compared to April and are down a striking 126% year-over-year, reflecting a sharp pullback in demand. Inventory remained unchanged month-over-month but is up 21% compared to the same period last year, adding to the oversupply.
With such a wide affordability gap and muted sales activity, new home builders continue to re-evaluate future land use strategies – potentially shifting focus toward smaller-scale, multi-unit infill housing that better aligns with today’s buyer preferences and financial realities.
In May, median sale prices for newer entry-level single-family homes ranged from $1,458,000 in Surrey to upwards of $3,850,000 in Westside Vancouver.
Reasons why you should consider newer-home resale data:
- Facilitates wise choices in new pre-sale purchases by providing valuable comparables, offering insights into product considerations for both personal use and investment.
- Great for those looking to purchase housing that is still in the early stages of its lifecycle – this means less repairs and maintenance during the first few years of ownership.
- More recent building and developer history – provides assurance and certainty when making one of the most important transactions of your life.
- Homes include some of the latest design and technology – great for resale value.
- Monthly sales statistics crucial for evaluating and planning new housing developments.
- These figures are routinely used by industry stakeholders such as real estate developers to understand the value of land and anticipated market values for newly completed homes.
Market Insights Report: May 2025
As spring slips into summer, the real estate market is moving slightly, but remains firmly in buyer’s market territory across much of Metro Vancouver. There’s currently a unique blend of ample listings, stable interest rates and sellers looking to offload their properties that could mean bargains and deals for buyers and investors alike.
