Buyers Remain Hesitant as May's Housing Inventory Builds

As May 2025 has come to a close, the Metro Vancouver housing market continues to reflect a cautious buyer approach alongside growing inventory levels. Here’s a closer look at the latest data from the Multiple Listing Service® (MLS®) and what it means for those navigating today’s real estate landscape.

A Closer Look at the Numbers

May 2025 saw a further slowdown in Metro Vancouver’s housing market, with residential sales totaling 2,228 for the month. This marks an 18.5% decrease compared to May 2024 and places sales roughly 30.5% below the 10-year seasonal average of 3,206. The ongoing hesitation from buyers continues to shape market activity, even as more listings become available.

New listings for the month reached 6,620, a 3.9% increase from 6,374 in May 2024. This figure also sits 9.3% above the 10-year seasonal average, adding more options for potential buyers. Active listings across Metro Vancouver climbed to 17,094 in May 2025, representing a 25.7% year-over-year increase and 45.9% above the 10-year seasonal average. This growing supply is gradually shifting the market to a more balanced state, offering improved selection for buyers.

Market Balance and Pricing Trends

The sales-to-active listings ratio for May 2025 stands at 13.4%, indicating a balanced market environment. Here’s the breakdown by property type:

• Detached Homes: Ratio of 10.2%

• Attached Homes: Ratio of 17.4%

• Apartments: Ratio of 14.7%

  
  

A ratio below 12% typically puts downward pressure on prices, while ratios above 20% suggest upward pressure. With current ratios sitting in the middle range, the market is experiencing stable pricing conditions, with buyers maintaining a slight upper hand particularly in the detached segment.

MLS® Home Price Index Trends

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is $1,177,100. This reflects a 2.9% decrease from May 2024 and a 0.6% dip compared to April 2025. Here’s a closer look at benchmark prices by property type:

• Detached Homes: Benchmark price is $1,997,400, down 3.2% from May 2024 and 1.2% from April 2025.

• Apartment Homes: Benchmark price is $757,300, a 2.4% decline from last year and 0.7% lower than April 2025.

• Attached Homes: Benchmark price is $1,106,800, down 3.4% year-over-year but up 0.4% from the previous month.

  
  

Future Outlook and Considerations

As we look ahead, the growing inventory and recent improvements in borrowing conditions could encourage more buyers to re-enter the market. With sellers adjusting expectations and pricing becoming more negotiable, the current environment is creating opportunities for strategic buyers.

While the spring market has been quieter than usual that resemble trends last seen in 2019 and 2020, there is potential for activity to ramp up over the summer. If interest rates remain favorable and buyer confidence improves, Metro Vancouver may see increased momentum in the coming months.

In summary, May 2025 has been defined by subdued sales, increasing inventory, and balanced market dynamics. For both buyers and sellers, understanding these evolving trends will be key to making informed real estate decisions as the summer market unfolds.