The Vancouver Life Real Estate Podcast Vancouver Real Estate Predictions 2025: Key Trends, Market Insights & Top Areas to Watch
In this episode, we explore our predictions for the 2025 Vancouver Real Estate Market, diving deep into the economic and financial trends that will shape the year ahead. With Canada’s GDP growth expected to remain moderate, driven by immigration and resource exports, the potential for a mild recession looms if elevated interest rates continue to slow consumer spending and business investment. We analyze the possibility of economic turbulence while discussing key signals in sectors like housing, manufacturing, and retail. Meanwhile, Canada’s population growth is expected to drop considerably from before but will still be pushing the annual growth, to what extent remains to be seen. This sustained influx will fuel housing demand but could strain infrastructure and services.
On the employment front, the unemployment rate, currently at 6.8%, is projected to remain somewhat stable within the 6.5%-8% range. While population growth could create new job opportunities, sensitive sectors like construction and tech may see some challenges. Inflation, sitting at 1.9%, is anticipated to close the year between 2.0% and 2.5%, assuming stable monetary policy and limited disruptions in energy prices or supply chains. This outcome largely depends on US trade policy which has yet to be sorted out.
The Bank of Canada’s interest rate, currently at 3.25%, is forecasted to ease slightly by year-end if inflation targets maintain and economic growth softens. In tandem, mortgage rates are likely to decline as well, with variable & potentially fixed rates dropping too. Despite these adjustments, Canada’s mortgage arrears rate, historically low at around 0.15%, may see a slight uptick as households adjust to higher payments on renewals.
Turning to real estate, we predict a steady recovery in sales volumes, with activity returning near the 10-year average, barring any significant rate fluctuations. The sales-to-active listings ratio which is currently signaling balanced market conditions may tick up into a Seller's market with more interest rate fluctuations. Inventory levels may see modest growth too as many who did not sell in 2024 will return to the market to try again. In the pre-sale market, developers are projected to cautiously release new projects, reflecting a gradual increase in buyer confidence. After an 8% decline in rental rates during 2024, the rental market is expected to stabilize though this will largely depend on immigration levels and the overall performance of the economy.
In this episode we also highlight the top markets poised to outperform the Greater Vancouver region in 2025. We look at Surrey and Langley as they continue to attract buyers with affordability and infrastructure investment among a list of other locations that we strongly endorse. Tune in and find out which areas those are!
This episode provides a comprehensive roadmap for navigating the opportunities and challenges of Vancouver’s 2025 real estate market. Whether you’re a buyer, seller, or investor, these insights will help you stay ahead in a shifting landscape. Tune in to learn more about what to expect and how to make informed decisions in the year ahead or book a one-on-one exploratory call with us and we'll help guide you through this recovering marketplace.
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Contact Us To Book Your Private Consultation:
📆 https://calendly.com/thevancouverlife
Dan Wurtele, PREC, REIA
604.809.0834
Ryan Dash PREC
778.898.0089
ryan@thevancouverlife.com