Vancouver’s residential real estate market is undergoing a notable recalibration. While the city has long been associated with high prices and intense competition, recent data shows declining sales, surging inventory, and softening prices. The shift is being felt across all property segments, from entry-level condos to luxury detached homes, and is prompting both concern and cautious optimism among market watchers, according to a June Edge Realty Analytics report. SalesVancouver home sales have entered a prolonged slowdown. Seasonally adjusted data shows that sales in May 2025 fell by 6.5% month-over-month (m/m) and 18.5% year-over-year (y/y), continuing a trend that began late last year. In fact, May marked the fifth consecutive monthly decline, bringing activity back to levels last seen in early 2020 during the initial COVID lockdowns.The trend in weakness has been seen throughout 2025. Sales of both single-family homes and condos were among the lowest in the past decade; only 2019 and 2020 had weaker Aprils in those segments. February 2025 saw an even sharper decline, with home sales plunging 20% m/m and 12% y/y, led by the single-family sector.Luxury and high-end properties have been hit particularly hard. Detached home sales in Vancouver West and the Westside, traditionally seen as bellwethers for foreign investment according to the report, were down 70% from their 2015 to 2016 peaks as of May. February’s data was equally stark, with sales in these areas plunging 42% y/y to their lowest February levels since 2012. Much of this can be attributed to diminished foreign capital inflows, especially from China, where economic headwinds have intensified.InventoryActive listings across all residential segments in Vancouver have reached decade highs. In April, listings were up 27.2% y/y, and by May, they had risen another 25% y/y. The surge has pushed total months of inventory to 7.7.The sales-to-new listings ratio has dropped below the 40% threshold that typically signals a buyer’s market. In May, the ratio sat just above 30%.This accumulation of unsold homes reflects both a cooling of buyer enthusiasm and a willingness among sellers to list even in a softening market, potentially anticipating further price declines.PricesHome prices in Vancouver are declining; the MLS Home Price Index (HPI) dropped 1.5% in April, the largest monthly decline since mid-2022 and the fourth consecutive monthly drop. March and February each saw 0.3% m/m declines.Construction Trends Point to Future TighteningWhile today’s market may favour buyers, the current slowdown in new construction suggests this balance could reverse at some point in the future.in early 2025, the total number of dwellings under construction in Metro Vancouver was falling. March saw a 1.2% m/m decline, with a 6.3% drop from the late-2024 peak. The most pronounced slowdown is in the condo segment, where construction fell 4.9% m/m in December.Single-family home construction has slowed notably. British Columbia has recorded its lowest-ever issuance of single-family home permits. With only 3,000 units in the pipeline, compared to 38,000 condos and 23,000 rentals, supply in this segment is poised to tighten. Purpose-built rental construction, however, has been strong. Vancouver saw a 3.4% m/m increase in January in this segment, which could keep rent growth in check.Rental Market The rental market in Vancouver, like the ownership market, is seeing the effects of rising supply and moderating demand. Average asking rents in the city were down 4.9% y/y as of April, aligning with a national trend of softening rents. These figures suggest the combination of increased rental completions and plateauing population growth, especially in the temporary resident segment, is starting to alleviate pressure in the rental market.