Vancouver’s red-hot housing market starting to cool
Frank O'Brien, Western Investor • May 18, 2021
Sales ‘ froth’ coming off as higher supply begins to meet buyer demand across Greater Vancouver, early April data shows.
As of April 15, home sales were down fractionally from the same period a month earlier, with 2,402 transactions compared to 2,663 sold as of mid-March, according to early data from the Greater Vancouver Real Estate Board, but the number of active listings increased to 10,301, up from 9,467 at the same time a month earlier.
The sales-to-listing ratio dipped to 59 per cent in mid-April, down from 62 per cent in mid-March.
The changes may seem minor, but April was the first month-over-month decline in sales in nearly a year and veteran real estate agents say the signals are clear.
“While the beat carries on, the tune is a little different this month. The volume has come down a little on Greater Vancouver’s real estate market,” said Kevin Skipworth, managing broker with Dexter Associates Realty in Vancouver, who supplied the early April data.
Kush Panatch, president of residential developer Panatch Group, said the market exuberance of the last 10 months, characterized by multiple offers and homes selling for well over the asking price, was based largely on buyers’ psychological fear of missing out.
“I saw some very intelligent people make less than stellar decisions,” Panache said, who noted he has seen similar wild, short swings in the market half a dozen times through his 30 years in Greater Vancouver real estate.
The fear of missing out will end soon, he predicted.
“You have already missed out,” said Panatch. He believes Metro Vancouver sales are now cycling into a “gentle market downturn” that will likely continue for some months.
“This is not a market correction, but the crazy froth in the market is ending,” he added.
Panatch, who sold out a 290-unit Port Moody condo development in the last year noted the final 100 units sold in less than three months.
“When we launched last March, just as the pandemic was starting, it would take buyers four to six weeks to make a decision to buy. By this March, decisions were being made in a day,” he said, even though he raised prices by from $10,000 to $50,000 per condo unit.
Panatch said a lot of developers who had delayed new strata project launches last year rushed to get their units onto the market as demand and prices began to increase last fall. There was also an increase in condo investors, he added, especially in pre-sales of concrete tower condo projects.
As a result, Metro Vancouver housing starts soared 115 per cent in March, to 3,711 units, compared to March 2020, and nearly 90 per cent of the supply was condo apartments.
This new strata supply, Panatch said, combined with rising new resale listings, will flatten Greater Vancouver’s steady increase in prices, which were 11 per cent higher in March than a year earlier.
“I don’t see prices coming down, ” he said.
Panatch and Skipworth both believe that a post-pandemic period, with an expected upturn in immigration and foreign buyers, and a strengthening economy, will begin the next up cycle in Greater Vancouver housing sales.
After soaring 128 per cent in March to set an all-time sales record, Greater Vancouver’s red-hot housing market is starting to cool down, early April data shows
As of April 15, home sales were down fractionally from the same period a month earlier, with 2,402 transactions compared to 2,663 sold as of mid-March, according to early data from the Greater Vancouver Real Estate Board, but the number of active listings increased to 10,301, up from 9,467 at the same time a month earlier.
The sales-to-listing ratio dipped to 59 per cent in mid-April, down from 62 per cent in mid-March.
The changes may seem minor, but April was the first month-over-month decline in sales in nearly a year and veteran real estate agents say the signals are clear.
“While the beat carries on, the tune is a little different this month. The volume has come down a little on Greater Vancouver’s real estate market,” said Kevin Skipworth, managing broker with Dexter Associates Realty in Vancouver, who supplied the early April data.
Kush Panatch, president of residential developer Panatch Group, said the market exuberance of the last 10 months, characterized by multiple offers and homes selling for well over the asking price, was based largely on buyers’ psychological fear of missing out.
“I saw some very intelligent people make less than stellar decisions,” Panache said, who noted he has seen similar wild, short swings in the market half a dozen times through his 30 years in Greater Vancouver real estate.
The fear of missing out will end soon, he predicted.
“You have already missed out,” said Panatch. He believes Metro Vancouver sales are now cycling into a “gentle market downturn” that will likely continue for some months.
“This is not a market correction, but the crazy froth in the market is ending,” he added.
Panatch, who sold out a 290-unit Port Moody condo development in the last year noted the final 100 units sold in less than three months.
“When we launched last March, just as the pandemic was starting, it would take buyers four to six weeks to make a decision to buy. By this March, decisions were being made in a day,” he said, even though he raised prices by from $10,000 to $50,000 per condo unit.
Panatch said a lot of developers who had delayed new strata project launches last year rushed to get their units onto the market as demand and prices began to increase last fall. There was also an increase in condo investors, he added, especially in pre-sales of concrete tower condo projects.
As a result, Metro Vancouver housing starts soared 115 per cent in March, to 3,711 units, compared to March 2020, and nearly 90 per cent of the supply was condo apartments.
This new strata supply, Panatch said, combined with rising new resale listings, will flatten Greater Vancouver’s steady increase in prices, which were 11 per cent higher in March than a year earlier.
“I don’t see prices coming down, ” he said.
Panatch and Skipworth both believe that a post-pandemic period, with an expected upturn in immigration and foreign buyers, and a strengthening economy, will begin the next up cycle in Greater Vancouver housing sales.
The number of court-ordered sales in Metro Vancouver is jumping, and may continue to grow as a mortgage renewal wave hits Canada five years after the pandemic-era real estate frenzy. Court-ordered inventory, while less than one per cent of the market, totalled 119 properties in the Vancouver region in October 2025, compared with 66 in October 2024 and 28 in October 2023, according to real estate website Zealty.ca (Zealty Online Search Inc.). Foreclosures are becoming more frequent because home prices are correcting, unemployment is rising and people who bought during the pandemic are having to renew their mortgages at higher interest rates, said Adam Major, managing broker with Sechelt-based Holywell Properties. There was a massive increase in home sales from late 2020 through 2022, he said. “This was the height of COVID craziness when [Bank of Canada governor] Tiff Macklem promised rates would stay low forever, the government was sending everyone free money and we all wanted a bigger house to work from home in,” he said. Those homes were financed at rock-bottom interest rates, with the central bank’s policy rate sitting at 0.25 per cent from March 2020 to March 2022. Because Canadian banks generally offer maximum terms of five years, it’s now time for many to pay the piper—at interest rates higher than what some can afford. “It is definitely a bad sign for the market as we are only at the beginning of the big mortgage renewal wave,” Major said. The most sales ever in a month in the region were the 5,715 sales in March 2021, he said. “Those buyers will have to renew this coming March. The number of renewals will stay elevated for a year after that. The average discount mortgage rate in March 2021 was 1.69 per cent versus about 3.79 per cent now, so almost everyone who bought in 2021 and 2022 will be paying significantly more on renewal,” he said. 👉 Read the Article Here
In this episode of Andy Talks Real Estate, I break down the November Fraser Valley real estate market and explain what the numbers actually mean if you’re thinking about buying or selling a home. This market has slowed as we head into the holiday season. Inventory is contracting. Sales are down. Prices have softened after several months of gradual decline. And that shift is creating very different opportunities depending on which side of the market you’re on. For Buyers: Buyers are firmly in control right now. You have more choice, more time, and the ability to negotiate properly. Conditions are back Home inspections matter Financing protection matters Time to make informed decisions Based on what I’m seeing, this buyer-friendly environment is likely to carry into early 2026. For Sellers This is not a market where you can rely on last year’s pricing or momentum. Accurate pricing is critical Professional preparation matters Strong marketing makes the difference Strategy beats waiting Homes that are positioned correctly are selling. Homes that miss the mark are sitting. Market Context The data comes directly from the Fraser Valley Real Estate Board, including: Sales activity New listings Months of inventory Housing Price Index trends Langley-specific market shifts The market feels more like a buyer’s market than a balanced one when you’re out touring homes. Looking Ahead There are early signs of pent-up demand, particularly among buyers with insured mortgage pre-approvals. January and February may stay quieter Activity is likely to build into late winter and spring Preparation is the advantage Have a plan. Know your options. Move when the timing is right for you.
Some days you’re polished. Some days you’re just… memorable. Check out LAPS for adoptables 😀
