Metro Vancouver's housing market in July continued to show early signs of recovery, building on the trends that started in June. While sales activity is picking up, the market remains in a balanced state, offering a stable environment for both buyers and sellers in the short term.
July 2025 Market Snapshot
In July, realtors saw close to 2,300 home sales recorded on the MLS. This figure is a slight 2% decrease compared to the same period last year and is 14% below the typical seasonal average. On the supply side, about 5,600 homes were listed for sale. This represents a 1% increase from 2024 and is 12% higher than the usual seasonal amount. By the end of the month, over 17,000 homes were available on the MLS, which is a substantial 40% above the average inventory for July.
Understanding Market Balance: The Sales-to-Active-Listings Ratio
The balance between supply and demand is a key factor influencing home prices. We can track this using the sales-to-active-listings ratio. This ratio compares the number of homes sold to the number of homes available for sale during the month.
Historically, when this ratio consistently falls below 12%, it suggests downward pressure on prices. Conversely, when the ratio stays above 20% for several months, prices tend to go up. Currently, the overall market is in balanced conditions.
Key Takeaways:
- The overall sales-to-active-listings ratio for all homes in May was 14%.
- For detached homes, the ratio was 10%.
- Attached homes saw a ratio of 17%.
- Apartments had a ratio of 16%.
Home Prices in July 2025
The MLS HPI benchmark price for all housing types in Metro Vancouver stood at $1,165,000 in July. This is a 3% decrease from the same time last year. Looking at specific property types:
- Detached Homes: The benchmark price was $1,974,000.
- Townhomes: The benchmark price was $1,099,000.
- Apartments: The benchmark price was $744,000.
What's Next for the Market?
The Bank of Canada's decision to keep the policy rate unchanged in July could provide more stability for borrowing costs, potentially encouraging more home sales. If sales activity continues to grow, the favorable conditions buyers are currently experiencing might start to change. As inventory levels decrease and sellers gain more negotiating power, the market could shift.
For more detailed information on the housing market, you can visit the market watch section on our website.
